Chapter 8 Flashcards
What is an organization chart?
the reporting structure and division of labor in an organization
Considering the fundamentals of organizing, what is differentiation?
the organization is composed of many different units that work on different kinds of tasks, using different skills and work methods
Considering the fundamentals of organizing, what is integration?
the degree to which differentiated work units work together and coordinate their efforts
What is authority?
the legitimate right to make decisions and to tell other people what to do
What is the hierachy and corporate governance in a business?
- hierarchy: the authority levels of the organizational pyramid
- corporate governance: the role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders
What is centralized organization?
an organization in which high-level executives make most decisions and pass them down to lower levels for implementation
What is decentralized organization?
an organization in which lower-level managers make important decisions
What is the horizontal structure?
- line departments: units that deal directly with the organization’s primary goods and services
- staff departments: units that support line departments
What is the functional organization?
it is structured around specialized activities such as production, marketing, and human resources
* economies of scale can be realized
* monitoring of the environment is more effective
* performance standards beter maintained
What is a divisional organization?
a form of departmentalization that groups units around products, customers, or geographic regions
What is the matrix organization?
an organization composed of dual reporting relationships in which some managers report to two superiors (a functional and a divisional manager)
What is the network organization?
a collection of independent, mostly single-function firms that collaborate on a good or service
What is delegation?
- delegation: the assignment of new or additional responsibilities to a subordinate
- responsibility: the assignment of a task that an employee is supposed to carry out
- accountability: the expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance
