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the order and design of relationships within a company; consists of two or more people working together with a common objective and clarity of purpose |
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the process of dividing work into separate jobs and assigning tasks to workers |
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the degree to which tasks are subdivided into smaller jobs |
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the process of grouping jobs together so that similar or associated tasks and activities can be coordinated |
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functional departmentalization |
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departmentalization that is based on the primary functions performed within an organizational unit |
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product departmentalization |
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Departmentalization that is based on the goods or services produced or sold by the organizational unit |
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process departmentalization |
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Departmentalization that is based on the production process used by the organizational unit. |
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Customer departmentalization |
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Departmentalization that is based on the primary type of customer served by the organizational unit. |
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Geographic departmentalization |
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Departmentalization that is based on the geographic segmentation of the organizational units. |
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Organization chart A visual representation of the structured relationships among tasks and the people given the authority to do those tasks. |
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The levels of management within an organization; typically includes top, middle, and supervisory management. |
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The line of authority that extends from one level of an organization's hierarchy to the next, from top to bottom, and makes clear who reports to whom. |
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Legitimate power, granted by the organization and acknowledged by employees, that allows an individual to request action and expect compliance. |
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The assignment of some degree of authority and responsibility to persons lower in the chain of command. |
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The number of employees a manager directly supervises; also called span of management. |
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An organizational structure that is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision making, and a long chain of command. |
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The degree to which formal authority is concentrated in one area or level of an organization. |
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The process of pushing decision-making authority down the organizational hierarchy. |
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An organizational structure that is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision making, and a short chain of command. |
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An organizational structure with direct, clear lines of authority and communication flowing from the top managers downward. |
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Line and staff organization |
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An organizational structure that includes both line and staff positions. |
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All positions in the organization directly concerned with producing goods and services and directly connected from top to bottom. |
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Positions in an organization held by individuals who provide the administrative and support services that line employees need to achieve the company's goals. |
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Matrix structure (project management) |
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An organizational structure that combines functional and product departmentalization by bringing together people from different functional areas of the organization to work on a special project. |
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An organizational structure in which authority and responsibility are held by a group rather than an individual. |
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The degree to which group members want to stay in the group and tend to resist outside influences. |
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The groups that share resources and coordinate efforts to help members better perform their individual jobs. |
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Like a work group, but also requires the pooling of knowledge, skills, abilities, and resources to achieve a common goal. |
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Usually members of the same department who meet regularly to suggest ways to improve operations and solve specific problems. |
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Teams without formal supervision that plan, select alternatives, and evaluate their own performance. |
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Cross functional team Members from the same organizational level, but from different functional areas. |
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The network of connections and channels of communication based on the informal relationships of individuals inside an organization. |
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The complete redesign of business structures and processes to improve operations. |
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A network of independent companies linked by information technology to share skills, costs, and access to one another's markets; allows the companies to come together quickly to exploit rapidly changing opportunities. |
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