Understanding Business Chapter 8
Hierarchy
a system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down
Tall Organization Structures
an organizational structure in which the organization chart would be tall because of the various levels of management
Line personnel
authority to make policy decisions
Matrix Organizations
emphasize on product development, creativity, special projects, communication, and teamwork.
Line managers
issue orders, enforce discipline and adjust the organization to change.
Centralized Authority
when decision making is concentrated at the top level of management
Line managers are those who have the authority to:
-Issue orders -Enforce discipline -adjust to changing conditions
The Four Ways to Structure an Organization
1. Line organizations 2. Line-and-staff organization 3. Matrix-style organizations 4. Cross-functional self-managed teams.
virtual organization.
A temporarily networked organization made up of replaceable firms that join and leave as needed
Virtual Corporation
A temporary networked organization made up of replaceable firms that join and leave as needed.
Organization Chart
A visual device that shows relationships among people and divides the organizations work it shows who report to whom
matrix
A way to fix the problem of ______-style teams is to establish long-term teams.
centralized organization.
An organization structure in which decision-making authority is maintained at the top level of management
Inverted Organization
An organization that has contact people at the top of the CEO at the bottom of the organizational chart
Bureaucracy
An organization with many layers of managers who set rules and regulations and oversee all decisions
Flat Organization Structures
An organizational structure that has few layers of management and a broad span of control.
Economics of scale
Companies can reduce their production costs by purchasing raw materials in bulk
Benchmarking
Compares an organizations practices, processes and products against the worlds best
Formal Organization
Details lines of responsibility, authority, and position.
Departmentalization
Divides organizations into separate units
staff personnel
Employees who advise and assist line manager in meeting their goals
Staff Personnel
Employees who advise and assist the line personnel in meeting their goals, and include marketing research, legal advising, and human resource employees.
hybrid
Firms may use a combination of departmentalization techniques to create a ____ form.
cross-functional teams
Group of employees from different departments who work together on a long-term basis are called:
Cross-Functional Self-Managed Teams
Groups of employees from different departments who work together on a long-term basis
Line Organization
Has direct two-way lines of responsibility, authority and communication running from the top to the bottom. Everyone reports to one supervisor.
advise
Line personnel have the authority to issue orders and discipline employees, while staff personnel have the ability to ____ and influence.
decentralized
Macy's is a company that allows its manager in California to select different items for sale then those in Maine because it has a(n) ________ structure.
change
Managing _____ has become a critical managerial function because the increasing rate of change affects all organizations.
Restructuring
Redesigning an organization so it can more effectively and efficiently serve its customers
Matrix Organization
Specialists from different parts of the organization work together temporarily on specific projects, but still remain park of he line-and-staff structure.
Core Competencies
The functions an organization can do as well as or better than any other organization in the world
Chain of the Command
The line of authority that moves from the top of the hierarchy to the lowest level
Span of Control
The optimal number of subordinates a manager supervises or should supervise
Real Time
The present moment or actual time in which something takes place
Informal Organization
The system of relationships that develop spontaneously as employees meet and form relationships
line organization
The type of organization that has direct two-way lines of responsibility, authority, and communication from the top down, with everyone reporting to one supervisor
Organizational or Corporate Culture
The widely shared values within an organization that foster unity and cooperation to achieve common goals
Line Organization
There are no specialists, legal, accounting, human resources, or information technology departments in what organization?
When work is standardized, broad spans of control are possible
True
Networking
Using communications technology to link organizations and allow them to work together.
Transparency
When a company is so open to other companies that electronic information is shared as is the companies were one.
Decentralized Authority
When the decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.
Line Personnel
Workers responsible for directly achieving organizational goals, and include production, distribution, and marketing employees.