Business chapter 8

what is departmentalization

the dividing of organizational functions into separate units

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 control

the optimal number of subordinates a manager supervises or should supervise

what is real time

the present moment or the actual time in which something takes place

what is the economic 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

what is a formal organization

the structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts

what are core competencies

those functions that the organization can do as well as or better than any other organization in the world

what is networking

using communications technology and other means to link organizations and allow them to work together on common objectives

what is an organizational (or corporate) culture

widely shared values within an organization that provide unity and cooperation to achieve common goals

what are digital natives

young people who have grown up using the internet and social networking

What are some examples of employees considered to be staff personnel would include?

-Info technology workers -legal advisors

The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:

-adapt to new technologies -change more quickly then ever before

What are the advantages of decentralization

-adaption to customer wants -empowerment of workers

Line managers are those who have the authority to:

-adjust to changing conditions -issue orders -enforce discipline

Cross-functional self-managed teams are used in organizations to:

-break down barriers between functional departments

Greater top management control is an advantage of ___ organization structure.

-centralized

what are customer expectations today:

-consumers today want high-quality products with fast, friendly service and all at low cost

In a project where members have different expertise and leadership is shaped to complete tasks, which organization structure works best ?

-cross-functional self managed team

when designing response organizations, what decisions do firms have to make?

-decide between centralization or decentralization -decide the span of the control -choose between tall or flat structures

Regardless of the size of the organization the principles of organizing include:

-dividing up the task to be clear -deciding what work needs to be done

what are the reasons for implementing departmentalization

-employees can develop skills in depth and progress within a department -the company can achieve economic of scale by centralizing all the resources it needs and locate various experts in that area -employees can coordinate work within the function, and top management can easily direct and control various department's activities

For departments to operate effectively, they must be allocated sufficient resources such as:

-funds -equipment -personnel (workers)

what are Weber's principles of organization

-job descriptions -written rules, decision guidelines, and detailed records -consistent procedures. regulations and policies -staffing and promotion based on qualifications

What are the disadvantages of decentralization

-less efficiency -complex distribution system

What are some advantages of a centralized authority?

-more efficiency -simpler distribution system -greater top-management control

why are organizatins changing business enviorments

-more global competition -declining economy -faster technological change -pressure to protect the enviorment

What are two examples that exemplify line personnel in the line-and-staff organization?

-packing personnel -production workers

what does a matrix organization emphasis on

-product development -creativity -special projects -communication -teamwork

What are some examples of a departmentalization process?

-the creation of a group including only accountants to process financial transactions -the creation of s group of specialists to process the Human Resources functions of the business

what are the disadvantages of line structure for large businesses:

-the lack of expertise to solve complex problems of communication -being too flexible -having lengthy lines of communication

Today's trend is to expand the span of control because :

-the workforce is better educated at all levels -organizations save by reducing the number of middle managers

what are Fayol's 10 principles

-unity of command -hierarchy of authority -division of labor -subordination of individual interest to the general interest -authority -degree of centralization -clear communication channels -order -equity -esprit de corps

The line organization's has direct lines of 1.,2.,3. That extend from the top,Ana get to employees at the lowest level of organization

1. Communication 2. Responsibility 3. Authority

what are the four ways to structure an organization

1. line organizations 2. line-and-staff organizations 3. matrix-style organizations 4. cros-functional self-managed teams

Line personnel have the authority to issue orders and discipline employees, while staff personnel have the ability to ___ and influence

Advise

Adjusting to the changing market is a normal function of a ___ economy.

Capitalist

Greater top management control is an advantage of ___ organization structures

Centralized

Nuke sells golf clubs, swim wear. However, Nike is known best for its marketing and advertising of athletic shoes. This is known as Nike's ___?

Core competency

True or false? A bureaucracy is designed to be customer focused

False

A firm that has a marketing department organized geographically and a productive process organized by function has which type of departmental structure?

Hybrid

Production workers, distribution workers, and marketing personnel who are responsible for directly achieving organizational goals are examples of ?

Line personnel

The principles of bureaucracy which brought consistent application of rules and procedures to organizations were proposed by ?

Max Weber

Which of Fayol's principles states that people should be placed and maintained in the proper location?

Order

Regardless of the size of the business, the principles of ___ it's structure remains the same

Organizing

In line-and-staff structures,___ managers provide advice and support to ___ departments in specialized matter such as finance, engineering, Human Resources, and the law

Staff & Line

what is geographic location

a company that has customers in several different regions of the world

when violation between the production and marketing departments is so great that production does not get appropriate feedback, it is an example of

a disadvantage of departmentalization

what is a 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 whoa re responsible to that person.

what is a virtual corporation

a temporary networked organization made up of replaceable firms that join and leave as needed

what is an organization chart

a visual device that shows relationships among people and divides the organization's work; it shows who reports to whom

what is a matrix organization

an organization in which specialists from different parts of the organization are brought together to wok on specific projects but still remain part of a line-and-staff structure.

what is a decentralized authority

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

what is a centralized authority

an organization structure in which decision-making authority is maintained at the top level of management

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 two-way line 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 a bureaucracy

an organization with many layers or managers who set rules and regulations and oversee all decisions

what is a tall organization structure

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

what s a flat organization structure

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

When competitors like Walmart and target compare their processes to try to improve their methods is an example of ?

benchmarking

what is benchmarking

comparing an organization's practices, processes, and products against the world's best

what is the type of departmentalization is this: president head above consumers-->manufacturers-->insitutions-> command users

customer group departmentalization

what is staff personnel

employees who advise and assist line personnel in meeting their goals

what is line personnel

employees who are part of the chain of command that is responsible for achieving organizational goals

what is a cross-functional self-managed teams

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

the system that develops spontaneously as employees meet and make cliques is an example of?

informal organization

what is restructuring

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

what is an informal organization

that system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization

In a line-and-staff organization, those who advise line personnel, but do not have the authority to issue direct orders to them and the company's ___ personnel

Staff