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MGT 100 Chapter 6
Organizing the Business
35
Computer Science
Undergraduate 3
12/10/2015

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Term
Specification of the jobs to be done within an organization and the ways in which they relate to one another.
Definition
Organizational Structure
Term
Diagram depicting a company's structure and showing employees where they fit into its operations.
Definition
Organizational Chart
Term
Reporting relationships within a company.
Definition
Chain of Command
Term
The process of identifying the specific jobs that need to be done and designating the people who will perform them.
Definition
Job Specialization
Term
Process of grouping jobs into logical units.
Definition
Departmentalization
Term
Separate company unit responsible for its own costs and profits.
Definition
Profit Center
Term
Dividing an organization according to specific products or services being created.
Definition
Product Departmentalization
Term
Dividing an organization according to production processes used to create a good or service.
Definition
Process Departmentalization
Term
Dividing an organization according to groups' functions or activities.
Definition
Functional Departmentalization
Term
Dividing an organization to offer products and meet needs for identifiable customer groups.
Definition
Customer Departmentalization
Term
Dividing an organization according to the areas of the country or the world served by a business.
Definition
Geographic Departmentalization
Term
Organization in which most decision-making authority is help by upper-level management.
Definition
Centralized Organization
Term
Organization in which a great deal of decision-making authority is delegated to levels of management at points below the top.
Definition
Decentralized Organization
Term
Characteristic of decentralized companies with relatively few layers of management.
Definition
Flat Organizational Structure
Term
Characteristic of centralized companies with multiple layers of management.
Definition
Tall Organizational Structure
Term
Number of people supervised by one manager.
Definition
Span of Control
Term
Process through which a manager allocates work to subordinates.
Definition
Delegation
Term
Duty to perform an assigned task.
Definition
Responsibility
Term
Power to make the decisions necessary to complete a task.
Definition
Authority
Term
Obligation employees have to their manager for the successful completion of an assigned task.
Definition
Accountability
Term
Organization structure in which authority flows in a direct chain of command from the top of the company to the bottom.
Definition
Line Authority
Term
Department directly linked to the production and sales of a specific product.
Definition
Line Department
Term
Authority based on expertise that usually involves counseling and advising line managers.
Definition
Staff Authority
Term
Advisers and counselors who help line departments in making decisions but who do not have the authority to make final decisions.
Definition
Staff Members
Term
Authority granted to committees or teams involved in a firm's daily operations.
Definition
Committee and Team Authority
Term
Groups of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision.
Definition
Work Team
Term
Organization structure in which authority is determined by the relationships between group functions and activities.
Definition
Functional Structure
Term
Organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella.
Definition
Divisional Structure
Term
Department that resembles a separate business in that it produces and markets its own products.
Definition
Division
Term
Organizational structure created by superimposing one form of structure onto another.
Definition
Matrix Structure
Term
Approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets.
Definition
International Organization Structures
Term
Network, unrelated to the firm's formal authority structure, of everyday social interactions among company employees.
Definition
Informal Organization
Term
____ groups are simply groups of people who decide to interact among themselves.
Definition
informal
Term
Informal communication network that runs through an organization.
Definition
Grapevine
Term
Process of creating and maintaining the innovation and flexibility of a small-business environment within the confines of a large organization.
Definition
Intrapreneuring
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