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Business Essentials

TermDefinition
Authority The formally granted influence of an individual to make decisions, pursure goals, and obtain the resources necessary to support those decisions and goals.
Chain of command The flow of authority within an organization.
Departmentalization The way departments are defined and arranged.
Division of labor The process of 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 is 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 down into traditional departments, each with its own set of responsibilities and activities (marketing, operations, sales, IT, etc.)
Matrix structure An organizational design that combines the traditional functional structure with the divisional structure.
Organizational chart A graphical representation of the flow of authority within the organization.
Organizational structure The company's configuration of employees for accomplishing specific business tasks; how the business is organized.
Organizing The management function of setting up the way the business's work will be done.
Scalar principle Creating authority that flows in a clear, continuous line.
Span of control The measurement of how many workers are supervised by one manager.
Specialization An employee's narrow focus on one task or area of expertise.
Unity of command A principle that states that no employee should answer to more than one supervisor at a time.
Created by: user-1789366
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