Chapter 7 : Organization Design, Authority, and Power

Chain of command

depicts the authority-responsibility relationships that link superiors and subordinates together throughout the entire organization.

Departmentalization

____________ is defined as the organization process of determining how activities are to be grouped.

Centralization

_____________ is defined as concentrating the power and authority near or at the top of the organization.

Chain of Command

_______________is defined as the authority-responsibility relationships that link superiors and subordinates together throughout the entire organization.

Decentralization

_______________is dispersing the power and decision-making to successively lower levels of the organization.

Synergy

_____________is the concept that two or more people, working together in a cooperative, coordinated way, can accomplish more than the sum of their independent efforts.

Acceptance theory of authority

Acceptance theory of authority is the concept that a manager's authority originates only when it has been accepted by the group or individual over whom it is being exercised.

Centralization

Centralization is concentrating the power and authority near or at the top of the organization.

Organizing

Organizing is the management's task of determining resources and activities required to achieve organizational objectives, combining them into a formal structure, assigning responsibility for goal achievement to individuals, and delegating to them the authority needed to carry out their assignments.

Decentralization

Decentralization is dispersing the power and decision-making to successively lower levels of the organization.

Delegation

Delegation is the process by which managers distribute and entrust activities and related authority to other people in the organization.

Departmentalization

Departmentalization is the organization process of determining how activities are to be grouped.

Division of labor

Division of labor is the principle that dividing work into components and assigning them to members of a group gets more accomplished than would be possible if each person tried to do the whole job alone.

Divisional structure

Divisional structure is a form of departmentalization that groups together all the functions associated with a single-product line, customer group, or geographic territory.

Formal theory of authority

Formal theory of authority is the concept that a manager's authority is conferred; it exists because someone was granted it.

Functional authority

Functional authority is the right of staff specialists to command line units in matters regarding the functional activity in which the staff specializes.

Line authority

Line authority is the authority that managers exercise over their immediate employees.

Matrix structure

Matrix structure is a hybrid type of departmentalization in which employees from several specialties are brought together to complete limited-life tasks. It usually evolves from one or more of the other types of departmentalization and is used in response to demand for unique blends of skill from different specialties in the organization.

Network structure

Network structure includes a central business unit (hub) linked to a network of functional suppliers.

Organization chart

Organization chart shows several key aspects of organization, including division of labor (or specialization), chain of command, management levels, reporting relationships, and level of bureaucracy.

Organizations

Organizations are groups of individuals with a common goal bound together by a set of authority-responsibility needed to reach objectives.

Span of management

Span of management is the number of subordinates reporting to a manager.

Specialization

Specialization is the concept that employees (and managers) carry out the activities they are best qualified for and most adept at performing.

Staff authority

Staff authority is the right of staff units or specialist to advise, make recommendations to, or counsel line personnel.

Synergy

Synergy is the concept that two or more people, working together in a cooperative, coordinated way, can accomplish more than the sum of their independent efforts.

Team structure

Team structure improves horizontal coordination, cooperation, and communication with the use of permanent or temporary cross-functional teams.

network

The ___________ structure includes a central business unit (hub) linked to a network of functional suppliers.

vertical functional

The ____________ structure is a form of departmentalization that groups together common functions or similar activities to form an organizational unit.

the divisional structure

The form of departmentalization that groups together all the functions associated with a single-product line, customer group, or geographic territory is called:

teams

This structure is widely used today because it improves horizontal coordination, cooperation, and communication with the use of permanent or temporary cross-functional _________.

Vertical functional structure

Vertical functional structure is a form of departmentalization that groups together common functions or similar activities to form an organizational unit.