BUS 110 Chapter 8
Fayol's Principles of Organization p.207
Fayol introduced such principles as, 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, and Esprit de corps (a spirit of pride and loyalty)
hierarchy p.208
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 p.220
a temporary networked organization made up of replaceable firms that join and leave as needed
matrix of organization p.216
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
decentralized authority p.210
an organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions that headquarters management could be
centralized authority p.210
an organization structure in which decision-making authority is maintained at the top level of management
flat organization structure p.211
an organization structure that has few layers of management and a broad span of control
inverted organization p.223
an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart
line organization p.215
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 p.209
an organization with many layers of managers who set rules and regulations and oversee all decisions
tall organization structure p.211
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
benchmarking p.221
comparing an organization's practices, processes, and products against the world's best
staff personnel p.215
employees who advise and assist line personnel in meeting their goals
line personnel p.215
employees who are part of the chain of command that is responsible for achieving organizational goals
cross-functional self-managed teams p.218
groups of employees from different departments who work together on a long-term basis
restructuring p.223
redesigning an organization so that it can more effectively and efficiently serve its customers
Max Weber and organizational theory p.208
resembled fayol's principles but also emphasized, job descriptions, written rules, decision guidelines, and detailed records, consistent procedures, regulations, and policies, and staffing and promotion based on qualifications.
departmentalization p.212
the dividing of organizational functions into separate units
chain of command p.209
the line of authority that moves from the top of ta hierarchy to the lowest level
span of control p.210
the optimal number of subordinates a manager supervises or should supervise
real time p.220
the present moment or the actual time in which something takes place
economies of scale p.206
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 the production levels increase
formal organization p.225
the structure that details lines of responsibility, authority, and position; that is, the structure shown in organization charts
informal organization p.225
the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization
core competencies p.222
those functions that the organization can do as well as or better that any other organization in the world
networking p.219
using communications technology and other means to link organizations and allow them to work together on common objectives
organizational (or corporate) culture p.224
widely shared values within an organization that provide unity and cooperation to achieve common goals
digital natives p.222
young people who have grown up using the Internet and social networking