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Management Leading & Collaborating in a Competitive World
Chapter 8
30
Management
Undergraduate 1
11/14/2011

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Term
Organization Chart
Definition
The reporting structure and division of labor in an organization.
Term
Differentiation
Definition
An aspect of the organization's internal environment created by job specialization and the division of labor.
Term
Integration
Definition
The degree to which differentiated work units work together and coordinate their efforts.
Term
Division of Labor
Definition
The assignment of different tasks to different people or groups.
Term
Specialization
Definition
A process in which different individuals and units perform different tasks.
Term
Coordination
Definition
The procedures that link the various parts of an organization for the purpose of achieving the organization's overall mission.
Term
Authority
Definition
The legitimate right to make decisions and to tell other people what to do.
Term
Hierarchy
Definition
The authority levels of the organizational pyramid.
Term
Corporate Governance
Definition
The role of a corporation's executive staff and board or directors in ensuring that in the firm's activities meet the goals of the firm's stakeholders.
Term
Subunits
Definition
Subdivisions of an organization.
Term
Span of Control
Definition
The number of subordinates who report directly to an executive or supervisor.
Term
Delegation
Definition
The assignment of new or additional responsibilities to a subordinate.
Term
Responsibility
Definition
The assignment of a task that an employee is suppose to carry out.
Term
Accountability
Definition
The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance.
Term
Centralized Organization
Definition
An organization in which high-level executives make most decisions and pass them down to lower levels for implementation.
Term
Decentralized Organization
Definition
An organization in which lower-level managers make important decisions.
Term
Line Departments
Definition
Units that deal directly with the organization's primary goods and services.
Term
Staff Departments
Definition
Units that support line departments.
Term
Departmentalization
Definition
Subdividing an organization into smaller subunits.
Term
Functional Organization
Definition
Departmentalization around specialized activities such as production, marketing, and human resources.
Term
Divisional Organization
Definition
Departmentalization that groups units around products, customers, or geographic regions.
Term
Matrix Organization
Definition
An organization composed of dual reporting, relationships in which some managers report to two superiors--a functional manager and a divisional manager.
Term
Unity-of-Command-Principle
Definition
A structure in which each worker reports to one boss who in turn reports to one boss.
Term
Network Organization
Definition
A collection of independent mostly single-function firms that collaborate on a good or service.
Term
Dynamic Network
Definition
Temporary arrangements among partners that can be assembled and reassembled to adapt to the environment.
Term
Broker
Definition
A person who assembles and coordinates participants in a network.
Term
Standardization
Definition
Establishing common routines and procedures that apply uniformly to everyone.
Term
Formalization
Definition
The presence of rules and regulations governing how people in the organization interact.
Term
Coordination by Plan
Definition
Interdependent units are required to meet deadlines and objectives that contribute to a common goal.
Term
Coordination by Mutual Adjustment
Definition
Units interact with one another to make accommodations to achieve flexible coordination.
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