Chapter 8. Structuring Organizations for Today's Challenges Flashcards
economies of scale
companies can reduce their production costs by purchasing raw materials in bulk
hierarchy
a system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down
chain of command
the line of authority that moves from the top of the hierarchy to the lowest level
organization chart
a visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom
bureaucracy
an organization with many layers of managers who set rules and regulations and oversee all decisions
centralized authority
decision making authority is maintained at the top level pf management at the company’s headquarters
decentralized authority
decision making authority is delegated to lower level managers more familiar with local conditions than headquarters management could be
span of control
the optimum number of subordinates a manager supervises or should supervise
tall organization structure
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
flat organization structure
an organizational structure that has few layers of management and a broad span of control
departmentalization
the dividing of organizational fucntions into separate units
line organization
has direct two-way lines of responsibility, authority, and communication running from the top to the bottom, with all people reporting to only on esupervisor
line personnel
employees who are part of the chain of command that is responsible for achieving organizational goals
staff personnel
employees who advise and assist line personnel in meeting their goals
matrix organization
specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and- staff structure
