Topic 7: Chapter 8 Flashcards
Economies of scale
The situation in which companies can reduce their production costs if they can purchase raw materials in bulk
Hierarchy
On person is at the top of the 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 a hierarchy to the lowest level
Organization chart
Visual device that shows relationships among people and finds that organizations work
Bureaucracy
An organization with many layers of managers who set rules and regulations and oversee all decisions
Centralized authority
A structure in which decision making authority is maintained at the top level of management at the companies headquarters
Decentralized authority
Structure in which decision making authority is delegated to lower level managers, more familiar with local conditions
Span of control
The optimum number of subordinates a manager supervises or should supervise
Tall organizational structure
Structure in which the pyramidal organization chart would be quite tall because of the various levels of management
Flat organizational structure
Has few layers of management and broad span of control
Departmentalization
Dividing of organizational functions into separate units
Line organization
Two way lines of responsibility authority and communication running from the too to the bottom
Line personnel
Employees apart of the chain of command
Staff personnel
Employees who advise and assist line personnel in meeting their goals
Matrix organization
Specialists from different parts of the org are brought together to work on specific projects but still remain part of a line and staff structure
