Chapter 7 (7.1, 7.3, 7.4) Flashcards
Organizational Structure
specification of the jobs to be done and how they are related
Determinants of Organizational Structure
purpose, mission, and strategy
size, technology, and changes in the environment
it may be carefully planned or develop as the organization evolves
Chain of Command
the organizational chart shows employee positions and the flow of decision-making power
Specialization
process of identifying the specific jobs that need to be done and the people who will perform them
Departmentalization
determining how tasks should be grouped together to make the workplace more efficient
Specialization and Growth
small companies have fewer employees (less specialization)
large companies become more efficient through specialization
Bases of Departmentalization
Functional
Customer
Product
Geographic
Process
Decision-Making Hierarchy
defines who is responsible for making certain decisions
Three-step process
assigning tasks
performing tasks
distributing authority
Assigning Tasks
Responsibility
duty to perform an assigned task
Authority
power to make decisions to complete a task
Performing Tasks
Delegation
assignment of a task, responsibility, or authority to a subordinate
Accountability
Obligation of subordinates to finish tasks and justify outcomes
Distributing Authority
Centralization
top managers reserve most of the decision-making rights
Decentralization
lower- and middle-level managers have some discretion in making decisions on their own
Span of Control
number of subordinates that a manager is responsible for supervising
Three Forms of Authority
Line authority
Staff authority
Committee/Team authority
Line Authority
direct chain of command (indicated by a solid line in the org. chart)
Staff Authority
staff that advise/support line managers (indicated by a dotted line in the organizational chart)
