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Exam 2: Text Notes
Chapter 9
39
Management
Undergraduate 3
09/27/2010

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Term
organizing
Definition
the deployment of organizational resources to achieve strategic goals
Term
organization structure
Definition
the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated
Term
organization chart
Definition
a visual representation of the company's organizational structure
Term
work specialization aka "division of labor"
Definition
the degree to which organizational tasks are subdivided into separate jobs
Term
chain of command
Definition
an unbroken line of authority that links all individuals in the organization and specifies who reports to whom
Term
scalar principle
Definition
refers to a clearly defined line of authority in the organization that include all employees
Term
authority
Definition
the formal and legitimate right of the manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes
Term
authority is distinguished by three characteristics
Definition
1. It's vested in organizational positions, not people.
2. It's accepted by subordinates.
3. It flows down the vertical hierarchy.
Term
responsibility
Definition
the duty to perform the task or activity as assigned
Term
accountability
Definition
the fact that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command
Term
delegation
Definition
the process managers use to transfer authority and responsibility to positions below them in the hierarchy
Term
line authority
Definition
a form of authority in which individuals in mgmt positions have the formal power to direct and control immediate subordinates
Term
staff authority
Definition
a form of authority granted to staff specialists in their area of expertise
Term
span of mgmt
Definition
the number of employees reporting to a supervisor; also called span of control
Term
tall structure
Definition
has an overall narrow span and more hierarchical levels
Term
flat structure
Definition
has a wide span, is horizontally dispersed, and has fewer hierarchical levels
Term
tall structures are
Definition
common in organizations
Term
centralization
Definition
decision authority is located at the top of the organization
Term
decentralization
Definition
decision authority is pushed downward to lower organization levels
Term
In the US and Canada the trend over the past 20 years concerning centralization and decentralization has been...
Definition
decentralization
Term
factors that influence centralization/decentralization
Definition
1. greater change and uncertainty in the environment are usually associated with decentralization
2. the amount of centralization should fit the firm's strategy
3. in times of crisis of risk of company failure, authority may be centralized at the top
Term
departmentalization
Definition
the basis on which individuals are grouped into depts and depts into the total organization
Term
functional structure
Definition
the grouping of positions into depts based on similar skills, expertise, and resource use
Term
divisional structure
Definition
an organization structure in which depts are grouped based on similar organizational outputs
Term
matrix approach
Definition
combines aspects of both functional and divisional structures simultaneously in the same part of the organization
*has dual lines of authority
Term
two-boss employees
Definition
those who report to two supervisors simultaneously
Term
matrix boss
Definition
the product or functional boss, responsible for one side of the matrix
Term
top leader
Definition
the overseer of both the product and functional chains of command, responsible for the entire matrix
Term
cross-functional teams
Definition
a group of employees from various functional depts that meet as a team to resolve mutual problems
Term
permanent teams
Definition
a group of participants from several functions who are permanently assigned to solving ongoing problems of common interest
Term
team-based structure
Definition
structure in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish the organization's goals
Term
virtual network structure
Definition
an organization structure that disaggregates major functions to separate companies that are brokered by a small headquarters organization
Term
modular approach
Definition
the process by which a manufacturing company uses outside suppliers to provide large components of the product by a few workers
Term
coordination
Definition
the quality of collaboration across depts
Term
task force
Definition
a temporary team or committee formed to solve a specific short-term problem involving several depts
Term
task force
Definition
a temporary team or committee formed to solve a specific short-term problem involving several depts
Term
project manager
Definition
a person responsible for coordinating the activities or several depts on a full-time basis for the completion of a specific project
Term
reengineering
Definition
the radical redesign of business processes to achiever dramatic improvements in cost, quality, service, and speed
Term
process
Definition
an organized group of related tasks and activities that work together to transform inputs into outputs and create value
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