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1.05 Key terms

TermDefinition
Authority The formally granted influence of an individual to make decisions, pursue goals, and obtain the resources necessary to support those decisions and goals
Chain of command The flow of authority within an organization; also called line of command
Communication An exchange of information in which the words and gestures are understood in the same way by both the speaker and the listener
Delegation Assigning tasks to subordinates
Division of labor Dividing a large job into units, or job tasks, and assigning an individual to do each of the tasks
Divisional structure An organizational design in which the firm id broken down into units according to factors such as product, process, territory, customer type, etc..
Functional structure An organizational design in which the firm is broken into traditional departments, each with its own set of responsibilities and activities
Innovation The creation or discovery of somethin new, such as a new product strategy, or process
Job specialization Becoming an expert in a specific work task
Lateral relations The amount of teamwork included in an organizational design
Line authority Formal, direct authority that affects a business's day-to-day operations
Line of command see chain of command
Matrix structure An organizational design that combines the traditional functional structure with the divisional structure
Objectives Goals to be reached
Organizational chart A graphical representation of the flow of authority within an organization
Organizational design The process of structuring a business's people, information, and technology to enable the business to achieve its goals and to be successful; also called organizational structure
Organizational structure see organizational design
Product manager An individual who monitors one or more existing products and develops new products
Productivity The amount of work employees perform in a given period usually their output per hour
Responsibility The duty to get a job done
Scaler principle Creating authority that flows in a clear, continuous line
Span of control The measurement of how many workers are supervised by one manager
Staff of authority Advisory authority, often without the ability to enforce or take action
Unity of command A principle that states that no employee should answer to more than one supervisor at a time
Created by: stacy.c283
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