Chapter 7 Organizing Flashcards
Organizational Structure
The formal arrangement of jobs in an organization
Organizational Design
Process involving decisions about such things as work or job specialization, departmentalization, chain of command, etc
Span of Management
Scope of supervision; the number of people who report to a particular manager
Formal Authority
Believes authority comes from the top down; outdated now
Chain of Command
Who reports to whom in an organization
Line Authority
Positional Authority; existing superior-subordinate relationships ; requires employees to recognize the legitimacy of a managers authority even if an employee doesn’t like the manager
Staff Authority
An employee who has a certain expertise and/or is given the right to assist others
Functional Authority
Restricted to a specific area/function/etc
Personal Authority
Authority and power associated with an individual
Power
Ability to influence people toward organizational objectives and get them to act in a certain way
Line Employees
Employees who have a direct responsibility to ensure goals are achieved
Staff Employees
Employees who serve in an advisory capacity but do not have direct responsibilities for goals in a department.
Unity of Command
Each employee has a single immediate supervisor who in turn is responsible to a superior, and so on
Span of Management or Span of Control
The number of people any one manager can supervise effectively
Centralization
A hierarchy based decision making structure where all decisions and processes are handled strictly at the top or the executive level.
Decentralization
An organization that is operated on delegation of decision-making powers and flexible processes.
Delegation
Tasks and accompanying authority that are assigned to an employee by a manager.
Matrix Organization
An organizational structure that facilitates the horizontal flow of skills and information.
Organic Organization
An organization structure in which employees may not have a director supervisor or may not be assigned permanently to one team.
Traditional Organization
An organization in which the lines of authority are very clear. Employees take direction only from their immediate manager who takes direction from their manager and so on.
Parity Principle
The concept that individuals who are given responsibility for a function must be given enough authority to carry out that function
Formal Authority Theory
Believes that authority originates from the top
Authority Acceptance Theory
Belief that authority is not granted by the CEO but rather from the employees’ willingness to comply with a specific manager
Limitation of Authority
Refers to a limitation placed on a manger by a boss or by social mores/community practices/lifestyle
