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| system of consciously coordinated activities or sources of two or more people. |
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Coordination of effort Common goal Division of labor Hierarchy of authority |
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| Unity of Command Principe |
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| each employee should report to a single manager. |
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| a graphic representation of formal authority and division of labor relationships |
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| the number of people reporting directly to a given manager. |
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| Do background research and provide technical advice, and recommendations to line managers. |
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| have authority to make organizational decisions. |
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| self-sufficient entity, closed to the surrounding environment. |
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| depends on constant interaction with the environment for survival |
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| one that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of new knowledge and insights |
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| represents team members’ “shared, organized understanding and mental representation of knowledge about key elements of the team’s relevant environment |
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| The structures of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures |
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| groups people according to the business functions they perform, for example, manufacturing, marketing, and finance |
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| groups together activities related to outputs, such as type of product or customer |
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| combines functional and divisional chains of command to form a grid with two command structures |
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| organization identifies core competencies and outsources noncore processes to vendors who can do them cheaper or faster |
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| Outsources parts of a product instead of processes |
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| organization identifies partners with the needed talents and negotiates an agreement in which the participants typically work in separate facilities, linked by technology |
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| Contingency Approach to Organizational Design |
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Definition
| organizations tend to be more effective when they are structured to fit the demands of the situation |
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| Mechanistic Organizations |
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Definition
| Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication. |
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| Flexible networks of multitalented individuals who perform a variety of tasks |
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| Centralized Decision Making |
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| key decisions are made by top management |
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| Decentralized Decision Making |
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| important decisions are made by middle- and lower-level managers |
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Key organizational results or outputs are compared with previously stated goals or objectives most widely used effectiveness criteria |
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| organization is effective if it acquires necessary factors of production |
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| focuses on “what the organization must excel at” to effectively meet its financial objectives and customers’ expectations. |
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| Strategic Constituencies Satisfaction |
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| Strategic constituency: any group of people with a stake in the organization’s operation or success. |
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Definition
| Creation of something new that is used by consumers. |
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