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BUS100 Ch6 Key Terms
BUS100 Chapter 6 Key Terms
33
Business
Undergraduate 1
02/22/2012

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Term
Organizational Structure
Definition
specification of the jobs to be done within an organization and the ways in which they relate to one another.
Term
Organization Chart
Definition
diagram depicting a company's structure and showing employees where they fit into its operations.
Term
Chain of Command
Definition
reporting relationships within a company.
Term
Job Specialization
Definition
the process of identifying the specific jobs that need to be done and designating the people who will perform them.
Term
Departmentalization
Definition
process of grouping jobs into logical units.
Term
Profit Center
Definition
separate company unit responsible for its own costs and profits.
Term
Product Departmentalization
Definition
dividing an organization according to specific products or services being created.
Term
Process Departmentalization
Definition
the dividing of an organization according to production processes used to create a good or service.
Term
Functional Departmentalization
Definition
the dividing of an organization according to groups' functions or activities.
Term
Customer Departmentalization
Definition
the dividing of an organization to offer products and meet needs for identifiable customer groups.
Term
Geographic Departmentalization
Definition
the dividing of an organization according to the areas of the country or the world served by a business.
Term
Centralized Organization
Definition
organizations in which most decision-making authority is held by upper-level management.
Term
Decentralized Organization
Definition
organization in which a great deal of decision-making authority is delegated to levels of management at points below the top.
Term
Flat Organizational Structure
Definition
characteristics of decentralized companies with relatively few layers of management.
Term
Tall Organizational Structure
Definition
characteristics of centralized companies with multiple layers of management.
Term
Span of Control
Definition
number of people supervised by one manager.
Term
Delegation
Definition
process through which a manager allocates work to subordinates.
Term
Responsibility
Definition
duty to perform an assigned task.
Term
Authority
Definition
power to make the decisions necessary to complete a task.
Term
Accountability
Definition
obligation employees have to their manager for the successful completion of an assigned task.
Term
Line Authority
Definition
organizational structures in which authority flows in a direct chain of command from the top of the company to the bottom.
Term
Line Department
Definition
department directly linked to the production and sales of a specific product.
Term
Staff Authority
Definition
authority based on expertise that usually involves counseling and advising line managers.
Term
Staff Members
Definition
advisors and counselors who help the line department in making decisions, but do not have the authority to make final decisions.
Term
Committee and Team Authority
Definition
authority granted to committees or teams involved in a firm's daily operations.
Term
Work Teams
Definition
groups of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision.
Term
Functional Structure
Definition
organization structure in which authority is determined by the relationships between group functions and activities.
Term
Divisional Structure
Definition
organizational structure in which corporate divisions operate autonomous businesses under the larger corporate umbrella.
Term
Division
Definition
department that resembles a separate business in that it produces and markets its own products.
Term
Matrix Structure
Definition
organizational structure created by superimposing one form of structure into another.
Term
International Organizational Structures
Definition
approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets.
Term
Informal Organization
Definition
network, unrelated to the firm's formal authority structure, of everyday social interactions among company employees.
Term
Intrapreneuring
Definition
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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