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ch.7
organizational structures
36
Business
Graduate
10/12/2010

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Cards

Term
formal organization
Definition
the order and design of relationships within a firm; consists of 2 or more ppl working togther with a common objective and clarity of purpose.
Term
division of labor
Definition
the process of dividing work into separate jobs and assigning tasks to workers
Term
specialization
Definition
the degree to which tasks are subdivided into smaller jobs
Term
departmentalization
Definition
the process of grouping jobs together so that similar or associated tasks and activities can be coordinated
Term
organization chart
Definition
a visual representation of the structured relationships among tasks and the ppl given the authority to do those tasks
Term
functional departmentalization
Definition

departmentalization that is based on the primary functions performed within an organizational unit

(marketing, finance, production, sales,....)

Term
product departmentalization
Definition

departmentalization that is based on the goods or services produced or sold by the organizational unit

(outpatient/emergency services, pediatrics, cardiology...)

Term
process departmentalization
Definition

departmentalization that is based on the production process used by the organizational unit

(lumber cutting and treatment, furniture finishing, shipping)

Term
customer departmentalization
Definition

dep. that is based on the primary type of customer served by the organizational unit.

(wholesale or retail purchasers)

Term
geographic dep.
Definition

dep. that is based on the geographic segmentation of the organizational units

(U.S and Canadian markets, European marketing, south American marketing)

Term
line organization
Definition
an organizational structure with direct, clear lines of authority and communication flowing from the top managers downward.
Term
line and staff org.
Definition
an org. structure that includes both line and staff postions
Term
line positions
Definition
all positions in the org. directly concerned with producing goods and services and that directly connected from top to bottom
Term
staff positions
Definition
positions in an org. held by individuals who provide the administrative and support services that line employees need to achieve the firms goals
Term
matrix structure (project management)
Definition
an org. structure that combines functional and product dep. by bringing together people from diff. functional areas of the organization to work on a special project.
Term
committee structure
Definition
an org. structure in which authority and responsibility are held by a group rather than an individual
Term
group cohesiveness
Definition
the degree to which group members want to stay in the group and tend to resist outside influences
Term
work groups
Definition
the groups that share resources and coordinate efforts to help members better perform their individual jobs
Term
work teams
Definition
like a work group but also requires the pooling of knowlege, skills, abilities, and resources to acheive a common goal
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
self managed work teams
Definition
teams without formal supervision that plan, select alternatives, and evaluate their own perormance
Term
cross functional team
Definition
members from the same org. level but from diff functional area
Term
managerial hierarchy
Definition
the levels of managment within an organization; typically includes top, middle, and supervisory management.
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
authority
Definition
legitimate power, granted by the organization and acknowleged by employees, that allows and individual to request action and expect compliance
Term
delegation of authority
Definition
the assignment of some degree of authority and responsibility to persons lower in the chain of command
Term
span of control
Definition
the number of employees a manager directly supervises; also called span of management
Term
centralization
Definition
the degree to which formal authority is concentrated in one area or level of an organization. top managment makes most of the decisions
Term
decentralization
Definition
the process of pushing decision making authority down the organizational hierarchy
Term
mechanistic Org.
Definition
an org. structure that is characterized by a relatively high degree of job specialization, rigid departmentalization, narrow spans of control, centralized decision making, and long chain of command. (Military, hospitals)
Term
organic Org.
Definition
an Org. structure that is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of managment, wide spans of control, decentralized decision making, and a short chain of command.  (google)
Term
informational org.
Definition
the network of connections and channels of communication based on the informal relationships of individuals inside an organization. (grape vine)
Term
reengineering
Definition
the complete redesign of business structures and processes in order to improve operations
Term
virtual corporation
Definition
a network of independant companies linked by information technology to share skills, costs, and access to one another's markets; allows the companies to come together quickly to exploit rapidly changing opportunities.
Term
narrow span of control
Definition

Advantages: -high degree of control

                              -fewer subordinates may mean manager is more familiar with each individual

                             -close supervision can provide immediate feedback

 

 

Disadvantages: -more levels of management, more expensive

                        -slower decision making due to vertical layers

-isolation of top management

-discourages employee autonomy

Term
wide span of control
Definition

Advantages: -fewer levels of management=lower costs

-increased subordinates=faster decision making

-greater org. flexibility

-higher levels of job satisfaction due to employee empowerment

 

Disadvantages: -less control

                                           -possible lack of familiarity due to large number of ppl.

                                      -mangagers spread so thin that they cant provide necessary leadership or support.

-lack of coordination or synchronization.

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