Chapter 7

Specialization

The degree to which tasks are subdivided into smaller jobs.

Work Groups

The groups that share resources and coordinate efforts to help members better perform their individual jobs

Problem-Solving Teams

Type of work team; Usually members of the same department who meet regularly to suggest ways to improve specific problems.

Merchanistic Organization

characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision making, and a long chain of command

Cross-Functional Teams

Type of work team; Members are from the same organizational level but are from different functional areas

Self-Manage Teams

Type of work teams; Teams without formal supervision that plan, select alternatives, and evaluate their own performances

Virtual Corporations

A network of independent corporations linked by information technology to share skills, costs, and access to one another's markets.

Matrix Structure (Project Management)

An organizational structure that combines functional and product departmentalization by bringing together people from different functional areas or the orginization to work on a special project

Line-and-Staff Organization

An organizational structure that includes both line and staff positions

Committee Structure

An orginizational structure in which authority and responsibility are held by a group rather than an individual

Organic Organization

Characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision making, and a short chain of command

Five Stages of Teams

Forming, Storming, Norming, Performing, and Adjourning

Forms of Departmentalization

Functional, Product, Process, Customer, and Geographic

Authority

Legitimate power, granted by the organization and acknowledged by employees, that allows an individual to request action and expect compliance

Work Teams

Like a work group but also requires the pooling of knowledge, skills, abilities, and resources to achieve a common goal.

Factors Determining Span of Control

Nature of task, Location of workers, Ability of Manager to Delegate Responsibility, Amount of Information and Feedback between the Workers and Managers, and Level of Skill and Motivation of the Workers

Decentralization is Desirable

Organization is large, Firm is in a dynamic environment, Managers are willing to share power, Employees are willing to take more responsibility, company is spread out geographically.

Staff Positions

Positions in an organization held by individuals who provide the administrative and support services that line employee's need to achieve the firm's goals

Attributes of a Virtual Corp

Technology, Oppurtunism, Trust, No Boarders, and Excellance

Delegation of Authority

The assignment of some degree of authority and responsibility to persons lower in the chain of command

Reengineering

The complete redesign of business structures and processes in order to improve operations

Chain of Command

The line of authority that extends from one level of an organizations hierarchy to the next, from top to bottom, and makes clear who reports to whom

Informal Organization

The network of connections and channels of communication based on the informal relationships of individuals inside an organization

Span of Control

The number of employees a manager directly supervises; also Span of Management

Formal Organization

The order and design of relationships within a firm; consists of two or more people working together with a objective and clarity of purpose

Divisions of Labor

The process of dividing work into seperate jobs and assigning tasks to workers

Departmentalization

The process of grouping jobs together so that similar or associated tasks and activities can be coordinated

Decentralization

The process of pushing decision making authority down the orginazational hierarchy

Centralization

the degree to which formal authority is concentrated in one area or level of an organization. Top management makes most decisions

Group Cohesiveness

The degree to which group members want to stay in the group and tend to resist outside influences

Managerial Hierarchy

The levels of management within an organization; typically includes top, middle, and supervisory