Chapter 8- Structuring Organizations For Today's Challenges Flashcards
Economies of scale
Companies can reduce their production costs if they can purchase raw materials in bulk. Avg. cost of goods ⬇️ production levels ⬆️
Hierarchy
One person 🔝 organization and rankings of responsible(to that person) managers below.
Chain of command
Line of authority 🔝 of hierarchy to the 🔚(lowest level)
Organization chart
Visual that shows relationships between people and divides the organization work, shows who reports to whom.
Bureaucracy
Organization many layers of managers who set rules/regulations and oversee all decisions.
Centralized authority
Organization decision making authority is top level of management.
Decentralized authority
Organization decision making authority delegated to low level managers familiar with local conditions than headquarters.
Span of control
Optimal number of subordinates a manager supervises or should.
Tall organization structure
Organizational structure pyramidal chart would be tall bc of the many levels of management.
Flat organization structure
Organization structure few layers of management and spread out control.
Departmentalization
The dividing of organizational functions into separate units.
Line organization
Organization direct 2 way lines responsibility, authority, and communication running from the top to the bottom w ppl only reporting to one supervisor.
Line personnel
Employees apart of chain of command, responsible for achieving organizational goals.
Staff personnel
Assist line personnel w meeting their goals.
Matrix organization
Organization specialists different parts of the organization come together to work on projects but are still line and staff structure.
Networking
Communications, technology, etc to link organizations allow them to work together on common objectives.
Real time
Present moment(actual time) something takes place.
Virtual corporation
Temporary networked made of replaceable firms that join and leave as needed.
Benchmarking
Comparing an organizations practices, processes, and products against the worlds best.
Core competencies
Functions that the organization can do just as good or better than any other organization in the world.
Digital natives
Young people who have grown up using the internet and social networking.
Restructing
Redesigning an organization to better serve its customers efficiently and effectively.
Inverted organization
Organization has contact people 🔝 chief executive bottom of organization chart.
Organizational(corporate) culture
Shared values within an organization provide unity and cooperation for common goals.
Formal organization
Structure details lines of responsibility,authority, and position, shown on organization charts.
Informal organization
Develops spontaneously as employees meet and form cliques, relationships and lines of authority outside the firms like organization.
