BUS100 Chapter 8

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.

organization chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

matrix organization

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.

flat organizational structures

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

line organization

Has direct two-way lines of responsibility, authority and communication running from the top to the bottom. Everyone reports to one supervisor.

staff personnel

advise and assist line personnel in meeting their goals, and include those in marketing research, legal advising, information technology, and human resource management

Max Weber

german economist and sociologist who promoted the pyramid-shaped organization structure

cross-functional self-managed teams

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

centralized authority

occurs when decision making is concentrated at the top level of management

decentralized authority

occurs when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be

economies of scale

refers to the fact that companies can reduce their production costs by purchasing raw materials in bulk.

line personnel

responsible for directly achieving organizational goals, and include production workers, distribution people, and marketing personnel

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.