chapter 8 Flashcards
What’s needed to adapt to business in America today
The ability to adapt to changing markets. Flexibility is key to being successful.
What are principles of organizational management?
- Devision of labor (sometimes results in specialization)
- Setting up teams and departments
- Assigning responsibility and authority
- Allocate resources
- Assign task
- establish procedures
Define economies of scale
when companies can reduce their production costs by purchasing in bulk. Average cost of goods goes down as production increases.
What is division of labor
Dividing task among several people, sometimes resulting in specialization
Define Bureaucracy
Many layers of management who set rules and regulations and oversee all decisions
Define hierarchy
a system in which one person is at the top of th organization and there is a ranked list below that
What are four organizational design issues that need to be considered
Centralization vs decentralization
span of control
tall vs flat org control
departmentalization
Define central authority
when decision making is concentrated at the top level of management
