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Management Chapter 4

Terms from Supervisory Management Chapter 4

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
Created by: JuliRae
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