Understanding Business Chapter 8

Hierarchy

a system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down

Tall Organization Structures

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

Line personnel

authority to make policy decisions

Matrix Organizations

emphasize on product development, creativity, special projects, communication, and teamwork.

Line managers

issue orders, enforce discipline and adjust the organization to change.

Centralized Authority

when decision making is concentrated at the top level of management

Line managers are those who have the authority to:

-Issue orders -Enforce discipline -adjust to changing conditions

The Four Ways to Structure an Organization

1. Line organizations 2. Line-and-staff organization 3. Matrix-style organizations 4. Cross-functional self-managed teams.

virtual organization.

A temporarily networked organization made up of replaceable firms that join and leave as needed

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 shows who report to whom

matrix

A way to fix the problem of ______-style teams is to establish long-term teams.

centralized organization.

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

Inverted Organization

An organization that has contact people at the top of the CEO at the bottom of the organizational chart

Bureaucracy

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

Flat Organization Structures

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

Economics of scale

Companies can reduce their production costs by purchasing raw materials in bulk

Benchmarking

Compares an organizations practices, processes and products against the worlds best

Formal Organization

Details lines of responsibility, authority, and position.

Departmentalization

Divides organizations into separate units

staff personnel

Employees who advise and assist line manager in meeting their goals

Staff Personnel

Employees who advise and assist the line personnel in meeting their goals, and include marketing research, legal advising, and human resource employees.

hybrid

Firms may use a combination of departmentalization techniques to create a ____ form.

cross-functional teams

Group of employees from different departments who work together on a long-term basis are called:

Cross-Functional Self-Managed Teams

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

Line Organization

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

advise

Line personnel have the authority to issue orders and discipline employees, while staff personnel have the ability to ____ and influence.

decentralized

Macy's is a company that allows its manager in California to select different items for sale then those in Maine because it has a(n) ________ structure.

change

Managing _____ has become a critical managerial function because the increasing rate of change affects all organizations.

Restructuring

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

Matrix Organization

Specialists from different parts of the organization work together temporarily on specific projects, but still remain park of he line-and-staff structure.

Core Competencies

The functions an organization can do as well as or better than any other organization in the world

Chain of the 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 a manager supervises or should supervise

Real Time

The present moment or actual time in which something takes place

Informal Organization

The system of relationships that develop spontaneously as employees meet and form relationships

line organization

The type of organization that has direct two-way lines of responsibility, authority, and communication from the top down, with everyone reporting to one supervisor

Organizational or Corporate Culture

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

Line Organization

There are no specialists, legal, accounting, human resources, or information technology departments in what organization?

When work is standardized, broad spans of control are possible

True

Networking

Using communications technology to link organizations and allow them to work together.

Transparency

When a company is so open to other companies that electronic information is shared as is the companies were one.

Decentralized Authority

When the decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.

Line Personnel

Workers responsible for directly achieving organizational goals, and include production, distribution, and marketing employees.