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The specification of the jobs to be done within a business and how those jobs relate to one another. |
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A physical depiction of the company's structure showing employees titles and their relationship to one another. |
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Reporting relationships within a business; the flow of decision-making power in a firm. |
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The Process of identifying the specific jobs that need to be done and designating the people who will perform them. |
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The process of grouping jobs into logical units. |
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A separate company unit responsible for its own costs and profits. |
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Functional Departmentalization |
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Departmentalization according to functions or activities. |
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Customer Departmentalization |
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Departmentalization according to the types of customers likely to buy a given product. |
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Product Departmentalization |
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Departmentalization according to the products being created or sold. |
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Geographic Departmentalization |
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Departmentalization according to the area of the country or world supplied. |
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Process Departmentalization |
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Departmentalization according to the production process used to create a good or service. |
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The duty to perform an assigned task. |
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The power to make the decisions necessary to complete a task. |
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Assignment of a task, a responsibility, or authority by a manager to a subordinate. |
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Liability of subordinates for accomplishing tasks assigned by managers. |
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Top managers retain most decision making rights for themselves. |
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Decentralized Organization |
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Lower and middle level managers are allowed to make significant decisions. |
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Flat Organizational Structure |
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An organization with relatively few layers of management. |
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Tall Organizational Structure |
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An organization with many layers of management. |
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The number of people managed by one manager. |
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The planned reduction in the scope of an organization's activity. |
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An organizational structure in which authority flows in a direct chain of command from the top to the bottom of the company. |
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A Department directly linked to the production and sales of a specific product. |
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Authority that is based on expertise and that usually involves advising line managers. |
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Advisers and counsellors who aid in line departments in making decisions but do not have the authority to make final decisions. |
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Committee and team authority |
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Authority granted to committees or work teams involved in a firms daily operations. |
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Various units are included in a group based on functions that need to be performed for the organization to reach its goals. |
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Divides the organization into divisions, each of which operates as a semi-autonomous unit. |
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An organization that uses teams of specialists to complete specific projects. |
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A project structure in which the project manager and the regular line managers share authority until the project is concluded. |
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International Organizational Structure |
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An organizational structure that is designed to help a company succeed in international markets. International departments, international divisions, or an integrated global organization are all variations of the international organizational structure. |
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A network of personal interactions and relationships among employees unrelated to the firm's formal authority structure. |
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An informal communications network that carries gossip and other information throughout an organization. |
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The process of creating and maintaining the innovation and flexibility of a small business environment within the confines of a large organization. |
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