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Management Chapter 4
Terms from Supervisory Management Chapter 4
Term | Definition |
---|---|
Four stages of growth in an organization | 1: The One-Person Organization 2: The Organization with Employees 3: The Line Organization 4: The Line-and-Staff Organization |
Line-and-staff organization | An organization structure in which staff positions are added to serve the basic line departments and help them accomplish the organization objectives more effectively |
Departmentalization | The organizational process of determining how activities are to be grouped |
Functional departmentalization | A form of departmentalization that groups together common functions or similar activities to form an organizational unit |
Product departmentalization | A form of departmentalization that groups together all the functions associated with a single product line |
Matrix departmentalization | A hybrid type of departmentalization in which personnel from several specialties are brought together to complete limited-life tasks |
Unity of command principle | States that everyone should report to and be accountable to only one boss |
Span of control principle | States that there is a limit to the number of people a person can supervise effectively |
Line personnel | Carry out the primary activities of a business |
Staff personnel | Have the expertise to assist line people and aid top management |
Advisory authority | Authority of most staff departments to serve and advise line departments |
Line authority | Power to directly command or exact performance from others |
Functional authority | A staff person's limited line authority over a given function |
Decentralization | The extent to which authority is delegated from one unit of the organization to another |
Downsizing | Eliminating unnecessary levels of management; striving to become leaner and more efficient by reducing the workforce and consolidating departments and work groups |
Reengineering | Rethinking and redesigning processes to improve dramatically cost, quality, service, and speed |
Inverted pyramid | A structure widest at the top and narrowing as it funnels down |
Wagon wheel | An organizational form with a hub, a series of spokes radiating from the hub, and the other rim |
Team structure | Utilizes permanent and temporary cross-functional teams to improve horizontal coordination and cooperation |
Network structure | Sometimes referred to as a modular structure; includes a central business unit, or "hub", linked to a network of external suppliers and contractors |
Cost leadership strategy | Attempts to lower costs below competitors by focusing on creating efficiencies within organizational systems. |
Differentiation strategy | Used by managers to gain a competitive advantage through good and/or services that are clearly unique or different from the competition |