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Management Ch. 5

By Nolan VanDerWerff

TermDefinition
Organizing The Function of management that creates the organizational structure.
Organizational Design When managers develop or change the organization's structure.
Work Specialization Dividing work activities into separate job tasks: also called division of labor.
Departmentalization How jobs are grouped together.
Functional Departmentalization Grouping activities by functions performed
Product Departmentalization Grouping activities by major product areas
Customer Departmentalization Grouping activities by customer
Geographic Departmentalization Grouping activities on the basis of geography of territory
Process Departmentalization Grouping activities on the basis of work or customer flow.
Cross-Functional Teams Teams made up of individuals from various departments and that cross traditional department lines.
Chain of Command The line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom.
Authority The rights inherent in a managerial position to give orders and expect the orders to be obeyed.
Responsibility An obligation to perform assigned duties.
Line Authority Authority that entitles a manager to direct the work of an employee.
Staff Authority Positions with some authority that have been created to support, assist, and advise those holding line authority
Unity of Command The management principle that no person should report to more than one person.
Power An individual's capacity to influence decisions.
Span of Control The number of employees a manager can efficiently and effectively supervise.
Centralization The degree to which decision making takes place at upper levels of an organization.
Decentralization The degree to which lower-level managers provide input or actually make decisions.
Formalization How standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures.
Mechanistic Organization A bureaucratic organization; a structure that's high in specialization, formalization, and centralization.
Organic Organization A structure that's low in specialization, formalization, and centralization
Unit Production The production of items in units or small batches.
Mass Production Large-Batch manufacturing
Process Production Continuous flow of products being produced
Simple Structure An organizational design with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization.
Functional Structure An occupational design that groups similar or related occupational specialties together.
Divisional Structure An organizational structure made up of separate business units or divisions
Team Structure A structure in which the entire organization is made up of work teams
Matrix Structure A structure in which specialists from different functional departments are assigned to work on projects led by a project manager.
Project Structure A structure in which employees continually work on projects.
Boundaryless Organization An organization whose design is not defined by, or limited to, boundaries imposed by a predefined structure.
Virtual Organization An organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects.
Network Organization An organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes.
Learning Organization An organization that has developed the capacity to continuously learn, adapt, and change
Organization Culture The shared values, principles, traditions, and ways of doing things that influence the way organizational members act.
Strong Cultures Organizational cultures in which the key values are deeply held and widely shared.
Created by: Nolan12345
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