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OBM
Chapter 17
28
Business
6th Grade
05/13/2013

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Cards

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