Chapter 8: Adapting Organizations to Today's Markets

hierarchy

a system in which one person is at the top of the organizations 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

matrix organization

an organization in which specialists from different parts of the organizations 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 than 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 a 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 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

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 world's best

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 a hierarchy to the lowest level

span of control

the optimal number of subordinates a manager supervises or 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

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

core competencies

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

networking

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

organizational (or corporate) culture

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

digital natives

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