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Principles of Management
Chapter 9 Vocab.
21
Business
Undergraduate 3
04/06/2008

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Term
Organizational Structure
Definition
formally defined framework of task and authority relationships. The organization structure is analogous to the biological concept of skeletons.
Term
Organizational Strategy
Definition
the general approaches the organization uses to acheive its organizational objectives. These approaches include market penetration, market development, product development, and diversification strategies.
Term
Authority
Definition
The legitimate right to use assigned resourses to accomplish a delegated task or objective; the right to give orders to exact obedience.
Term
Employee Empowerment
Definition
The management practice of pushing decision-making authority down the chain of command to the individuals or groups responsible for carrying out tasks.
Term
Departmentalization
Definition
The process of grouping jobs together on the basis of some common characteristics, such as production, client, location, or function.
Term
Span of Control
Definition
The number of subordinates who report to a superior. The span of control is a factor that affects the shape and height of an organization structure.
Term
Decentralization
Definition
Thee process of pushing downward the appropriate amount of decision-making authority. All organizations practice a certain degree of decentralization.
Term
Chain of Command
Definition
The formal channel that defines authority, responsibility, and communication relationships from top to bottom
Term
Boundaryless Organization
Definition
Where the formal structure characteristics such as span of control, departmentalization, and rigid chain of command is minimized or eliminated.
Term
Social Harmony
Definition
A factor in departmentalization. Managers must be attuned to the social relationships in an organization and be careful not to create a departmental structure that creates disharmonies.
Term
Supply Chain Management (SCM)
Definition
A company's efforts to organize and control its global sourcing.
Term
Formalization
Definition
The degree to which an organization's expectations as to the means and ends of work are specified and written.
Term
Centralization
Definition
Describes the location of decision-making authority in the organization's hierarchy; refers to the delegation of authority among the organization's jobs.
Term
Complexity
Definition
Difference among jobs as the direct outgrowth of dividing work and creating departments.
Term
Organizational Design
Definition
the process by which managers develop an organization's structure.
Term
Mechanistic Model
Definition
An organization design in which there is differentiation of job task, rigid rules, and reliance on top-management objectives.
Term
Organic Organization
Definition
An organization with a behavioral orientation, participation from all employees, and communication flowing in all directions.
Term
Matrix Organization
Definition
A design in which a project-type structure is imposed on a functional structure.
Term
Multidivisional Organization (M-Form)
Definition
A high-performance organization form that allows highly interdependent operating units or divisions.
Term
Network organization
Definition
A flexible, usually temporary set of alliances among disparate companies that have come together for a specific, single purpose
Term
Outsourcing
Definition
the practice of one company contracting with another to provide products or services that are not part of the first company's core activities.
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