Chapter 7 : Organization Design, Authority, and Power
Chain of command
depicts the authority-responsibility relationships that link superiors and subordinates together throughout the entire organization.
Departmentalization
____________ is defined as the organization process of determining how activities are to be grouped.
Centralization
_____________ is defined as concentrating the power and authority near or at the top of the organization.
Chain of Command
_______________is defined as the authority-responsibility relationships that link superiors and subordinates together throughout the entire organization.
Decentralization
_______________is dispersing the power and decision-making to successively lower levels of the organization.
Synergy
_____________is the concept that two or more people, working together in a cooperative, coordinated way, can accomplish more than the sum of their independent efforts.
Acceptance theory of authority
Acceptance theory of authority is the concept that a manager's authority originates only when it has been accepted by the group or individual over whom it is being exercised.
Centralization
Centralization is concentrating the power and authority near or at the top of the organization.
Organizing
Organizing is the management's task of determining resources and activities required to achieve organizational objectives, combining them into a formal structure, assigning responsibility for goal achievement to individuals, and delegating to them the authority needed to carry out their assignments.
Decentralization
Decentralization is dispersing the power and decision-making to successively lower levels of the organization.
Delegation
Delegation is the process by which managers distribute and entrust activities and related authority to other people in the organization.
Departmentalization
Departmentalization is the organization process of determining how activities are to be grouped.
Division of labor
Division of labor is the principle that dividing work into components and assigning them to members of a group gets more accomplished than would be possible if each person tried to do the whole job alone.
Divisional structure
Divisional structure is a form of departmentalization that groups together all the functions associated with a single-product line, customer group, or geographic territory.
Formal theory of authority
Formal theory of authority is the concept that a manager's authority is conferred; it exists because someone was granted it.
Functional authority
Functional authority is the right of staff specialists to command line units in matters regarding the functional activity in which the staff specializes.
Line authority
Line authority is the authority that managers exercise over their immediate employees.
Matrix structure
Matrix structure is a hybrid type of departmentalization in which employees from several specialties are brought together to complete limited-life tasks. It usually evolves from one or more of the other types of departmentalization and is used in response to demand for unique blends of skill from different specialties in the organization.
Network structure
Network structure includes a central business unit (hub) linked to a network of functional suppliers.
Organization chart
Organization chart shows several key aspects of organization, including division of labor (or specialization), chain of command, management levels, reporting relationships, and level of bureaucracy.
Organizations
Organizations are groups of individuals with a common goal bound together by a set of authority-responsibility needed to reach objectives.
Span of management
Span of management is the number of subordinates reporting to a manager.
Specialization
Specialization is the concept that employees (and managers) carry out the activities they are best qualified for and most adept at performing.
Staff authority
Staff authority is the right of staff units or specialist to advise, make recommendations to, or counsel line personnel.
Synergy
Synergy is the concept that two or more people, working together in a cooperative, coordinated way, can accomplish more than the sum of their independent efforts.
Team structure
Team structure improves horizontal coordination, cooperation, and communication with the use of permanent or temporary cross-functional teams.
network
The ___________ structure includes a central business unit (hub) linked to a network of functional suppliers.
vertical functional
The ____________ structure is a form of departmentalization that groups together common functions or similar activities to form an organizational unit.
the divisional structure
The form of departmentalization that groups together all the functions associated with a single-product line, customer group, or geographic territory is called:
teams
This structure is widely used today because it improves horizontal coordination, cooperation, and communication with the use of permanent or temporary cross-functional _________.
Vertical functional structure
Vertical functional structure is a form of departmentalization that groups together common functions or similar activities to form an organizational unit.