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system of consciously coordinated activities or sources of two or more people. |
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Coordination of effort Common goal Division of labor Hierarchy of authority |
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Unity of Command Principe |
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each employee should report to a single manager. |
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a graphic representation of formal authority and division of labor relationships |
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the number of people reporting directly to a given manager. |
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Do background research and provide technical advice, and recommendations to line managers. |
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have authority to make organizational decisions. |
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self-sufficient entity, closed to the surrounding environment. |
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depends on constant interaction with the environment for survival |
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one that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of new knowledge and insights |
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represents team members’ “shared, organized understanding and mental representation of knowledge about key elements of the team’s relevant environment |
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The structures of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures |
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groups people according to the business functions they perform, for example, manufacturing, marketing, and finance |
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groups together activities related to outputs, such as type of product or customer |
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combines functional and divisional chains of command to form a grid with two command structures |
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organization identifies core competencies and outsources noncore processes to vendors who can do them cheaper or faster |
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Outsources parts of a product instead of processes |
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organization identifies partners with the needed talents and negotiates an agreement in which the participants typically work in separate facilities, linked by technology |
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Contingency Approach to Organizational Design |
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Definition
organizations tend to be more effective when they are structured to fit the demands of the situation |
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Mechanistic Organizations |
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Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication. |
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Flexible networks of multitalented individuals who perform a variety of tasks |
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Centralized Decision Making |
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key decisions are made by top management |
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Decentralized Decision Making |
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important decisions are made by middle- and lower-level managers |
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Key organizational results or outputs are compared with previously stated goals or objectives most widely used effectiveness criteria |
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organization is effective if it acquires necessary factors of production |
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focuses on “what the organization must excel at” to effectively meet its financial objectives and customers’ expectations. |
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Strategic Constituencies Satisfaction |
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Strategic constituency: any group of people with a stake in the organization’s operation or success. |
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Definition
Creation of something new that is used by consumers. |
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