CH 8

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What three traits do companies that are successful at adapting to change have?

(1)They listen to customers (2)They have inspirational managers who drive new ideas throughout the organizations. (3)They often have had a close call with going out of business

What do today's customers expect?

Customers expect high-quality products and fast, friendly service--at a reasonable cost.

What is restructuring?

Redesigning an organization so that it can more effectively and efficiently serve its customers.

What is a chain of command?

The line of authority that moves from the top of a hierarchy to the lowest level.

What is span of control?

The optimum number of subordinates a manager supervises or should supervise.

What is departmentalization?

The process of setting up individual departments to do specialized tasks

What is meant by the term economies of scale?

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

Who does the term digital natives refer to?

Young people who have grown up using the Internet and social networking.

What is meant by division of labor?

determine what tasks need to be done and then divide these tasks among a group of people in order to work more efficiently

What is hierarchy?

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

What is an organizational chart?

A visual device that shows relationships among people and divides the organization's work; it shows who is accountable for the completion of specific work and who reports to whom.

What is a matrix organization?

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure. (on a temporary basis)

What is an inverted organization?

An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart.

What is a line organization?

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

What is bureaucracy?

An organization with many layers of managers who set rules and regulations and oversee all decisions.

What is decentralized authority?

An organizational structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

What is centralized authority?

An organizational structure in which decision-making authority is maintained at the top level of management at the company's headquarters.

What is meant by a tall organizational structure?

An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management.

What is meant by a flat organizational structure?

An organizational structure that has few layers of management and a broad span of control.

The success of a firm often depends on management's ability

to identify each worker's strengths and assign the right tasks to the right person.

The key to success is remaining ________ enough to adapt to the changing times.

Flexible

What are cross-functional self-managed teams?

Groups of employees from different departments who work together on a long-term basis.

Who are staff personnel?

Employees who advise and assist line personnel in meeting their goals. -ex. worker in financial aid or worker in Admin

Who are line personnel?

Employees who are part of the chain of command that is responsible for achieving organizational goals. Ex.instructors/teachers


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