| Term | Definition |
| Organization | a systematic grouping of individuals which have been brought together to
accomplish a common goal |
| Systematic Structures | define the various roles of members; set limits on employee work behavior;
create rules and regulations; vary widely from organization to organization;
adapt to the environment in which an organization is located |
| Operative Employees | make up the base level of the pyramid; produce an organization’s goods
and services; generally do not manage or oversee the work of other
employees |
| Supervisors | part of an organization’s management team; oversee the work of
operative employees; are the only managers who do not manage other
managers; considered first-level managers |
| Middle Managers | employees who manage other managers; responsible for establishing
and achieving the goals of their specific department or region set by top
management |
| Top Management | sets an organization’s goals and objectives; develops methods for achieving
goals and objectives; is the head of the organization |
| The Management Process | refers to accomplishing goals and objectives effectively and efficiently;
involves using your resources competently; always has an end goal of
achievement; accomplished through a specific organizational structure |
| Organizational Structures | arrange and group jobs based on specific tasks in order to enhance
efficiency; increase the effectiveness of communication and reporting |
| Informal Structures | are laid-back and undefined; involve employees completing tasks which
may not always fit their job description; normally found in smaller
businesses with fewer employees |
| Formal Structures | clearly defined and organized; can be found in any size business |
| Work Specialization | occurs when a job is broken down into a number of steps which are each
completed by a different individual |
| Span of Control | the number of employees a supervisor can direct; varies from supervisor
to supervisor |
| Chain of Command | the principle in which an employee should have only one supervisor to
whom he or she is responsible; decreases conflicting demands and
priorities |
| Authority | refers to the rights of a supervisory position to give orders; one person’s
position over another |
| Line Authority | the most straightforward form of authority; gives the supervisor the right
to direct the work of his or her employees without consulting others |
| Staff Authority | supports line authority; allows others to advise, service and assist the
supervisor if needed; allows for input and suggestions from additional staff
members, but does not guarantee implementation |
| Functional Authority | signifies the rights over individuals outside of an individual’s specific
division; breaks the chain of command |
| Centralization | occurs when only a select few people at the top of an organization make the
decisions |
| Decentralization | occurs when decisions are made by the individuals who are the closest to
the problem; more conducive to making changes in a process |
| Departmentalization | the grouping of individuals into departments based on work functions,
product or service, target market, geographic territory and process used to
create products |
| Simple Structure | non-elaborate structure; has little formalization; has a centralized
authority |
| Functional Structure | expansion of functional departmentalization; groups employees with
similar and related occupational specialties; used as a framework for an
entire company |
