Understanding Business Chapter 8

What are the four major choices in structuring organizations?

1. Centralization versus decentralization 2.breadth of span of control 3. Tall versus flat organization structures 4. Type of departmentalization

What are the two major organizational models?

1.line organization- clearly defined responsibility and authority, is easy to understand, and provides each worker with only one supervisor. 2. Line-and-staff organizations- The expert advice of staff assistance helps in areas such as safety, quality control, computer technology, human resource management, and investing.

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

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 reports to whom

What is an inverted organization?

An inverted organization places employees at the top of the hierarchy; managers are at The bottom to train and assist employees.

Matrix organization

An organization in which specialist from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure

Decentralized authority

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

Centralized authority

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

Flat organization structure

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

Inverted organization

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

Line organization

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

Bureaucracy

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

Tall organization structure

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

Benchmarking

Comparing an organization's practices processes and products against the worlds best.

What is organizational culture?

Consists of the widely shared values within an organization that faster unity and cooperation to achieve common goals

What are the principles of organization management?

Devising a division of labor Setting up teams and departments Assigning responsibility and authority Allocating resources Assigning specific tasks Establishing procedures to accomplish the organizations objective Make ethical decisions about how to treat workers

What are the latest trends in structuring?

Eliminate managers and flatten organizations

Staff personnel

Employees were advise and assist line personnel in meeting their goals

Line personnel

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

Cross functional self managed teams

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

What principles did Weber add?

Job descriptions, written rules and decision guidelines, consistent procedures, and staffing and promotions based on qualifications.

What is a key alternative to the major organizational model?

Matrix organizations which assign people to projects temporarily and encourage teamwork

What is the difference between the formal and informal organization of a firm?

The formal organization details lines of responsibility, authority, and position. The informal organization is the system that developed spontaneously as employees me informed clicks, relationships, and lines of authority outside the formal organization.

Chain of 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 supervisor should supervise

Real time

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

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.

What is happening today to American buisnessess?

They are adjusting to changing markets

Core competencies

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

What were Fayol's Basic principles?

Unity of command, hierarchy of authority, division of labor, subordination of individual inches to the general interest, authority, clear communication channels, order, and equity.

Networking

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

Organizational culture

Widely shared values within an organization that provides unity and cooperation to achieve common goals

Digital natives

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

Departmentalization

dividing of organizational functions into separate units

Restructuring

Re-designing an organization so that It can more effectively and efficiently service customers