Introduction to Business Chapter 6 Flashcards
Organizational Structure
Specification of the jobs to be done within an organization and the ways in which those jobs relate to one another
Organization Chart
diagram depicting a company’s structure and showing employees where they fit into its operations
Chain of Command
reporting relationships within a company
Job Specialization
the process of identifying the specific jobs that need to be done and designating the people who will perform them
Departmentalization
process of grouping jobs into logical units
Profit Center
separate Company unit responsible for its own costs and profits
Functional Departmentalization
dividing an organization according to groups’ functions or activities
Product Departmentalization
dividing an organization according to specific products or services being created
Process Departmentalization
dividing an organization according to production processes used to create a good or service
Customer Departmentalization
departments that offer products and meet the needs of identifiable customer groups
Geographic Departmentalization
dividing an organization according to the areas of the country or the world
Centralized Organization
Organization in which most decision making authority is held by upper-level management
Decentralized Organization
Organization in which a great deal of decision making authority is delegated to levels of management at points below the top
Flat Organizational Structure
characteristic of decentralized companies with relatively few layers of management
Tall Organizational Structure
characteristics of centralized companies with multiple layers of management
Span of Control
number of people supervised by one manager
Delegation
process through which a manager allocates work to subordinates
Responsibility
duty to perform an assigned task
Authority
power to make the decisions necessary to complete a task
Accountability
obligation employees have for the successful completion of a task
Line Authority
type of authority that flows up and down the chain of command is line authority
Line Departments
departments directly linked to the production and sales of a specific product
Staff Authority
authority based on special expertise and usually involves advising line managers in areas such as law, accounting, and human resources
Staff Members
help line departments make decisions but do not have the authority to make final decisions
Committee and team authority
authority granted committees or teams involved in a firms daily operations
Work Team
group of employees who are empowered to plan, organize, and perform their work with minimal supervision and often with special authority as well
Functional Structure
Organization structure which authority determined by the relationships between group functions and activities
Divisional Structure
Organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella
Division
department that resembles a separate business in that it produces and markets its own products
Matrix Structure
an organizational setup where employees report to multiple managers, typically both a functional manager within their department and a project manager for specific projects
International Organizational Structures
how a company organizes its operations across multiple countries, dividing responsibilities and decision-making authority between a central headquarters and various subsidiaries based on factors like geographic regions, product lines, or functions, allowing for adaptation to local markets while maintaining overall global coordination
Informal Organization
network unrelated to the firm’s formal authority structure of everyday social interactions among company employees
Grapevine
informal communication network that runs through an organization
Intrapreneuring
process of creating and maintaining the innovation and flexibility of a small business environment within the confines of a large organization
