HBOM Exam
Terms
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- organization
- the process of coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals
- process departmentalization
- departmentalization that is based on the production process used by the organizational unit; for example, lumber cutting and treatment, furniture finishing, and shipping
- formal organization
- the order and design of relationships within a firm; consists of two or more people working together with a common objective and clarity of purpose
- chain of command
- 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
- product departmentalization
- departmentalization that is based on the goods and services produced or sold by the organizational unit; for example, outpatient emergency services, pediatrics, and cardiology
- line-and-staff organization
- an organizational structure that includes both line and staff positions
- decentralization
- the process of pushing decision-making authority down the organizational hierarchy, giving lower-level personnel more responsibility and power to make and implement decisions
- authority
- legitimate power, granted by the organization and acknowledged by employees, that alloows an individual to request action and expect compliance
- Division of Labor
- the process fo dividing work into separate jobs and assigning tasks to workers
- managerial hierarchy
- te levels of management within and organization; typically, includes top, middle, and supervisory management; also called the management pyramid
- organization chart
- a visual representation of the structured relationships among tasks and the people given the authority to do those tasks
- specialization
- the degree to which tasks are subdivided into smaller jobs
- delegation of authority
- the assignment of some degree of authority and responsibility to persons lower in the chain of command; makes the person lower in the hierarchy accountable to the supervisor
- line positions
- positions in an organization held by individuals who are directly involved in the process used to create goods and services
- line organization
- and organizational structure with direct, clear lines of authority and communication flowing from the top managers downward. Managers have direct control over all activities, including administrative duties
- functional departmentalization
- departmentalization that is based on the primary functions performed within an organizational unit; for example, marketing, finance, production, and sales
- span of control
- the number of employees a manager directly supervises; also called the span of management
- virtual corporation
- 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
- consumer departmentalization
- departmentalization that is based on the primary type of customer served by the organizational unit; for example, wholesale or retail purchasers
- departmentalization
- the process of grouping jobs together so that similar or associated tasks and activities can be coordinated
- geographic departmentalization
- departmentalization that is based on the geographic segmentation of the organizational units; for example, U.S. marketing, European marketing, and Asian marketing
- organic organization
- an organizational structure that is characterized by a relativly low degree of job specialization, loose departmentalization, few levels of management, wide span of control, decentralized decision making, and a short chain of command
- centralization
- the degree to which formal authority is concentrated in one area or level of an organization
- staff positions
- positions in an organization held by individuals who provide the administrative and support services that line employees need to achieve the firm's goals; for example, legal counseling, public relations, and human resource management
- mechanistic organization
- 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
- informal organization
- the network of connections and channels of communication based on the informal relationships of individuals inside an organization
- committee structure
- an organizational structure in which authority and responsibility are held by a group rather than an individual typically found as part of a larger line-and-staff organization
- reengineering
- the complete redesign of business structures and processes in order to improve operations
- matrix structure
- 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; sometimes used in conjunction with the traditional line-and-staff structure; also called the project management approach.