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Ch. 6 Organizing
Ch. 6 Organizing the Business
| Term | Definition |
|---|---|
| Organizational Structure | the specification of the jobs to be done within an organization and the ways in which those jobs relate to one another |
| Organizational Chart | diagram depicting a company's structure and showing employees where they fit into its operations |
| Chain of Command | reporting relationships within the 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 in logical units |
| Profit Center | a separate company unit responsible for its own costs and profits (done after departmentalization) |
| Functional Departmentalization | dividing an organization according to groups' functions or activities |
| Product Departmentalization | dividing an organization according to the specific product or service being created |
| Process Departmentalization | dividing an organization according to production processes used to create a good or service |
| Customer Departmentalization | dividing an organization to offer products and meet needs of identifiable customer groups |
| Geographic Departmentalization | dividing an organization according to the areas of the country or the world served by a business |
| Centralized Organization | most decision making authority is held by upper-level managers |
| Decentralized Organization | organization in which a great deal of 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 | characteristic 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 (delegation) | duty to perform an assigned task |
| Authority (delegation) | power to make the decisions necessary to complete a task |
| Accountability (delegation) | obligation employees have to their manager for the successful completion of an assigned task |
| Line Authority | organizational structure in which authority flows in a direct chain of command from the top of the company to the bottom |
| Line Department | department directly linked to the production and sales of a specific product |
| Staff Authority | authority based on expertise that usually involves counseling and advising line managers |
| Staff Members | advisers and counselors who help line departments in making decisions but who do not have the authority to make final decisions |
| Committee and Team Authority | authority granted to committees or teams involved in a firms daily operations |
| Work Team | groups of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision |
| Functional Structure | organization structure in which authority is 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 | combination of two separate structures; highly flexible |
| International Organizational Structure | approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets |
| Team Organization | people float from project to project as dictated by their skills and the demands of those projects |
| Virtual Organization | little or no functional structure; exists only in response to its own needs |
| Learning Organization | works to integrate continuous improvement with continuous employee learning and development |
| Informal Organization | network, unrelated to a firm's formal authority structure, of everyday social interaction among company employees |
| Grapevine | informal communication network that can permeate an entire organization; 75%-95% accurate |
| Intrapreneuring | process of creating and maintaining the innovation and flexibility of a small-business environment within the confines of a large organization |
Created by:
hwinkler59