Introduction to Business Chapter 6

Question 1

Organizational Structure

Answer 1

Specification of the jobs to be done within an organization and the ways in which those jobs relate to one another

Question 2

Organization Chart

Answer 2

diagram depicting a company’s structure and showing employees where they fit into its operations

Question 3

Chain of Command

Answer 3

reporting relationships within a company

Question 4

Job Specialization

Answer 4

the process of identifying the specific jobs that need to be done and designating the people who will perform them

Question 5

Departmentalization

Answer 5

process of grouping jobs into logical units

Question 6

Profit Center

Answer 6

separate Company unit responsible for its own costs and profits

Question 7

Functional Departmentalization

Answer 7

dividing an organization according to groups’ functions or activities

Question 8

Product Departmentalization

Answer 8

dividing an organization according to specific products or services being created

Question 9

Process Departmentalization

Answer 9

dividing an organization according to production processes used to create a good or service

Question 10

Customer Departmentalization

Answer 10

departments that offer products and meet the needs of identifiable customer groups

Question 11

Geographic Departmentalization

Answer 11

dividing an organization according to the areas of the country or the world

Question 12

Centralized Organization

Answer 12

Organization in which most decision making authority is held by upper-level management

Question 13

Decentralized Organization

Answer 13

Organization in which a great deal of decision making authority is delegated to levels of management at points below the top

Question 14

Flat Organizational Structure

Answer 14

characteristic of decentralized companies with relatively few layers of management

Question 15

Tall Organizational Structure

Answer 15

characteristics of centralized companies with multiple layers of management

Question 16

Span of Control

Answer 16

number of people supervised by one manager

Question 17

Delegation

Answer 17

process through which a manager allocates work to subordinates

Question 18

Responsibility

Answer 18

duty to perform an assigned task

Question 19

Authority

Answer 19

power to make the decisions necessary to complete a task

Question 20

Accountability

Answer 20

obligation employees have for the successful completion of a task

Question 21

Line Authority

Answer 21

type of authority that flows up and down the chain of command is line authority

Question 22

Line Departments

Answer 22

departments directly linked to the production and sales of a specific product

Question 23

Staff Authority

Answer 23

authority based on special expertise and usually involves advising line managers in areas such as law, accounting, and human resources

Question 24

Staff Members

Answer 24

help line departments make decisions but do not have the authority to make final decisions

Question 25

Committee and team authority

Answer 25

authority granted committees or teams involved in a firms daily operations

Question 26

Work Team

Answer 26

group of employees who are empowered to plan, organize, and perform their work with minimal supervision and often with special authority as well

Question 27

Functional Structure

Answer 27

Organization structure which authority determined by the relationships between group functions and activities

Question 28

Divisional Structure

Answer 28

Organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella

Question 29

Division

Answer 29

department that resembles a separate business in that it produces and markets its own products

Question 30

Matrix Structure

Answer 30

an organizational setup where employees report to multiple managers, typically both a functional manager within their department and a project manager for specific projects

Question 31

International Organizational Structures

Answer 31

how a company organizes its operations across multiple countries, dividing responsibilities and decision-making authority between a central headquarters and various subsidiaries based on factors like geographic regions, product lines, or functions, allowing for adaptation to local markets while maintaining overall global coordination

Question 32

Informal Organization

Answer 32

network unrelated to the firm's formal authority structure of everyday social interactions among company employees

Question 33

Grapevine

Answer 33

informal communication network that runs through an organization

Question 34

Intrapreneuring

Answer 34

process of creating and maintaining the innovation and flexibility of a small business environment within the confines of a large organization