BUS 110 Chapter 8

Fayol's Principles of Organization p.207

Fayol introduced such principles as, unity of command, hierarchy of authority, division of labor, subordination of individual interests to the general interest, authority, degree of centralization, clear communication channels, order, equity, and Esprit de corps (a spirit of pride and loyalty)

hierarchy p.208

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 p.220

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

matrix of organization p.216

an organization in which specialists 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 p.210

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

centralized authority p.210

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

flat organization structure p.211

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

inverted organization p.223

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

line organization p.215

an organization that has direct two-way 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 p.209

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

tall organization structure p.211

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

benchmarking p.221

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

staff personnel p.215

employees who advise and assist line personnel in meeting their goals

line personnel p.215

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

cross-functional self-managed teams p.218

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

restructuring p.223

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

Max Weber and organizational theory p.208

resembled fayol's principles but also emphasized, job descriptions, written rules, decision guidelines, and detailed records, consistent procedures, regulations, and policies, and staffing and promotion based on qualifications.

departmentalization p.212

the dividing of organizational functions into separate units

chain of command p.209

the line of authority that moves from the top of ta hierarchy to the lowest level

span of control p.210

the optimal number of subordinates a manager supervises or should supervise

real time p.220

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

economies of scale p.206

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 the production levels increase

formal organization p.225

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

informal organization p.225

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

core competencies p.222

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

networking p.219

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

organizational (or corporate) culture p.224

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

digital natives p.222

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