Chapter 7 (Business in a Changing World)

Hierarchy

a system in which one person is at the top of the organization and there is a ranked or sequential ordering for 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 organization's work; it shows who is accountable for the completion specific work and who reports to whom

Matrix Organization

an organization in which specialists from different parts of the organization are brought together to work on one specific project but still maintain part of a line-and-staff structure

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 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

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

Decentralized Authority

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

Centralized Authority

an organizational structure in which decision-making authority is maintained at the top level of management at the company's headquarters

Tall Organizational Structure

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

Flat Organizational Structure

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

Staff Personnel

employees who 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

Restructuring

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

Departmentalization

the dividing of organizational functions into separate units

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 of manager supervises or should supervise

Real Time

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

Networking

the process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems

Economies of Scale

the situation in which companies can reduce their production cost if they can purchase raw materials and bulk; the average cost of goods goes down as production levels increase

Formal organization

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

Informal Organization

the system that develop spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization; that is, the human side of the organization that does not appear on any organization chart

Core Competencies

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

Organizational (corporate) Culture

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

Digital Natives

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