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Ch 8: Designing Orginizational Structures
CH.8 vocab from Gitman's. The Future of Business; 6th Edition
20
Business
11th Grade
11/11/2009

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Term
Authority
Definition
Legitimate power, granted by the organization and acknowledged by employees, that allows an individual to request action and expect compliance.
Term
Centralization
Definition
The degree to which formal authority is concentrated in one area or level of an organization. Top management makes most of the decisions.
Term
Chain of Command
Definition
The line of authority that extends from one level of an organization's hierarchy to the next, from top to bottom, and makes clear who reports to whom.
Term
Cross-Functional Team
Definition
Members from the same organizational level, but from different functional areas.
Term
Decentralization
Definition
The process of pushing decision-making authority down the organizational hierarchy.
Term
Delegation of Authority
Definition
The assignment of some degree of authority and responsibility to persons lower in the chain of command.
Term
Departmentalization
Definition
The process of grouping together so that similar or associated tasks and activities can be coordinated.
Term
Division of Labor
Definition
The Process of dividing work into separate job and assigning tasks to workers.
Term
Formal Organization
Definition
The order and design of relationships within a firm; consists of two or more people working together with a common objective and clarity of purpose.
Term
Group Cohesiveness
Definition
The degree to which group members want to stay in the group and tend to resist outside influences.
Term
Line-and-Staff Organization
Definition
An organizational structure that includes both line and staff positions.
Term
Managerial Hierarchy
Definition
The levels of management within an organization; typically includes top, middle, and supervisory management.
Term
Matrix Structure
Definition
An organizational structure that combines functional and product departmentalization by bringing together people from different functional areas of the organization to work on a special project.
Term
Organization Chart
Definition
A visual representation of the structured relationship among tasks and people given the authority to do those tasks.
Term
Problem-Solving Teams
Definition
Usually members of the same department who meet regularly to suggest ways to improve operations and solve specific problems.
Term
Re-engineering
Definition
The complete redesign of business structures and processes in order to improve operations.
Term
Self-Managed Work Teams
Definition
Teams without formal supervision that plan, select alternatives, and evaluate their own performance.
Term
Span of Control
Definition
The number of employees a manager directly supervises, also called span of management.
Term
Specialization
Definition
The degree to which tasks are subdivided into smaller jobs.
Term
Virtual Corporation
Definition
A network of independent companies linked by information technology to share skills, costs, and access to one anothers markets; allows the companies to come together quickly to exploit rapidly changing opportunities.
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