Organizational Structures
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| Organization | a systematic grouping of individuals which have been brought together to
accomplish a common goal
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| 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
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| 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
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| 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
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| Middle Managers | employees who manage other managers; responsible for establishing
and achieving the goals of their specific department or region set by top
management
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| Top Management | sets an organization’s goals and objectives; develops methods for achieving
goals and objectives; is the head of the organization
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| 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
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| Organizational Structures | arrange and group jobs based on specific tasks in order to enhance
efficiency; increase the effectiveness of communication and reporting
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| 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
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| Formal Structures | clearly defined and organized; can be found in any size business
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| Work Specialization | occurs when a job is broken down into a number of steps which are each
completed by a different individual
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| Span of Control | the number of employees a supervisor can direct; varies from supervisor
to supervisor
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| 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
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| Authority | refers to the rights of a supervisory position to give orders; one person’s
position over another
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| 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
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| 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
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| Functional Authority | signifies the rights over individuals outside of an individual’s specific
division; breaks the chain of command
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| Centralization | occurs when only a select few people at the top of an organization make the
decisions
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| Decentralization | occurs when decisions are made by the individuals who are the closest to
the problem; more conducive to making changes in a process
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| Departmentalization | the grouping of individuals into departments based on work functions,
product or service, target market, geographic territory and process used to
create products
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| Simple Structure | non-elaborate structure; has little formalization; has a centralized
authority
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| Functional Structure | expansion of functional departmentalization; groups employees with
similar and related occupational specialties; used as a framework for an
entire company
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