Chapter 8 Intro To Business Study Guide

What did Webber emphasize in his book?

- Job descriptioins -Written rules, decision guidelines, and detailed records. - Consistent procedures, regulations, and policies. -Staffing and promotion based on qualifications.

What principles did Fayol introduce in his book?

-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 _Esprit de corps (a spirit of pride and loyalty)

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

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but sill remain part of la 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 desicion-making authority is maintained at the top level of management.

Flat Organizational 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 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 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.

Who was Henri Fayol?

French economic theoretician who published a book called "Administration Industrielle et générale" in 1919. The title was popularized in 1949 under the title General and Industrial Managment.

Cross-Functional self-managed teams

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

Who was Max Webber?

Max Weber was an author of "The Theory of Social and Economic Organizations." It promoted the pyramid-shaped organization structure that became popular in large firms.

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 the organization charts.

Informal Organization

The system that develops sontaneously as employees meet and form cliues, relatinshisp, and lines of authority outside the formal organiztion.

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 to work together on common objectives.

Organizational (or corporate) 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.

Restructuring

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