Chapter 8 Flashcards
(45 cards)
Organization Chart
depicts the positions in the firm and the way they are arranged
Differentiation
the organization is composed of many units that work on different kids of tasks using different skills and work methods
Integration
differentiated units are put back together so that work is coordinated into an overall product
Division of Labor
the work of the organization is subdivided into smaller tasks with various individuals and units throughout the organization performing different tasks
differentiation
Specialization
refers to the fact that different people or groups often perform specific parts of the larger task
differentiation
Coordination
the procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission
integration
Authority
the legitimate right to make decisions and to tell other people what to do
3 Duties of Board of Directors
1: selecting, assessing, rewarding, and prehaps replacing the CEO
2: determining the firm’s strategic direction and reviewing financial performance
3: ensuring ethical, socially responsible, and legal conduct
Top Directors on the Board are called what?
Inside Directors
CEO
chief executive officer who occupies the top of the organizational pyramid, personally accountable to the board and to the owners for the organization’s performance
Top Management Team
comprised of CEO, president, chief operating officer, chief financial officer, and other key executives
Hierarchy
the authority levels of the organizational pyramid
Corporate Governance
the role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders
Sarbanes-Oxley Act
imposed much tighter corporate governance rules (EX: CEOs and CFOs have to certify the accuracy of their firm’s financial statements personal)
subunits
subdivisions of an organization
Span of Control
the number of subordinates who report directly to an executive or supervisor
optimal #: 5 Bonaparte
12 btwn ‘08 and ‘12
Delegation
the assignment of new or additional responsibilities to a subordinate
Responsibility
the assignment of a task that an employee is supposed to carry out
Accountability
the expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance
Steps in Delegation
1: Define the goal succinctly.
2: Select the person for the task.
3: Solicit the subordinate’s views about suggested approaches.
4: Give the subordinate the authority, time, and resources (people, money, equipment) to perform the assignment.
5: Schedule checkpoints for reviewing progress.
6: Follow through by discussing progress at appropriate intervals.
Centralized Organization
an organization in which high-level executives make most decisions and pass them down to lower levels for implementation
Decentralized Organization
an organization in which lower-level managers make important decisions
Line Departments
units that deal directly with the organization’s primary goods and services
Staff Departments
units that support line departments