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1.05 Org Design

Business Management I

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 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 into departments, each with its own set of responsibilities and activities.
Innovation The creation or discovery of something 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 of 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
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
Staff 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: gabriella.m665
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