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BUSI 5301 Chapter 8
Organization Size, Life Cycle, and Decline
19
Business
Undergraduate 4
04/14/2017

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Term
bureaucracy
Definition
an organizational framework marked by rules and procedures, specialization and division of labour, hierarchy of authority, technically qualified personnel, separation of position and person, and written communications and records
Term
bureaucratic control
Definition
the use of rules, policies, hierarchy of authority, written documentation, standardization, and other bureaucratic mechanisms to standardize behaviour and assess performance
Term
centralization
Definition
the level of hierarchy with authority to make decisions
Term
charismatic authority
Definition
based on devotion to the exemplary character or heroism of an individual and the order defined by him or her
Term
clan control
Definition
the use of social characteristics, such as culture, shared values, commitments, traditions, and beliefs, to control behaviour
Term
collectivity stage
Definition
the life-cycle phase in which an organization has strong leadership and begins to develop clear goals and direction
Term
downsizing
Definition
intentionally reducing the size of a company's workforce by laying off employees
Term
elaboration stage
Definition
the organizational life-cycle phase in which the red-tape crisis is resolved through the development of a new sense of teamwork and collaboration
Term
entrepreneurial stage
Definition
the life-cycle phase in which an organization is born and its emphasis is on creating a product and surviving in the marketplace
Term
formalization
Definition
the degree to which an organization has rules, procedures, and written documentation
Term
formalization stage
Definition
the phase in an organization's life cycle involving the installation and use of rules, procedures, and control systems
Term
incident command system
Definition
developed to maintain the efficiency and control benefits of bureaucracy yet prevent the problems of slow response to crises
Term
life cycle
Definition
a perspective on organizational growth and change that suggests that organizations are borne, grow older, and eventually die
Term
market control
Definition
a situation that occurs when price competition is used to evaluate the output and productivity of an organization
Term
organizational decline
Definition
a condition in which a substantial, absolute decrease in an organization's resource base occurs over a period of time
Term
personnel ratios
Definition
the proportions of administrative, clerical, and professional support staff
Term
rational-legal authority
Definition
based on employees' belief in the legality of rules and the right of those in authority to issue commands
Term
self-control
Definition
a person's values are brought into line with the organization's values to control behaviour
Term
traditional authority
Definition
based on the belief in traditions and the legitimacy of the status of people exercising authority through those traditions
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