 | Term | Definition |
| |
economies of scale |
the situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase |
| |
hierarchy |
a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person |
| |
chain of command |
the line of authority that moves from the top of a hierarhy to the lowest level |
| |
bureaucracy |
an organization with many layers of managers who set rules and regulations and oversee all decisions |
| |
centralized authority |
an organization structure in which decision making authority is maintained at the top level of management at the company's headquarters |
| |
decentralized authority |
an organization structure in which decision making authority is delegated to lower level managers more familiar with local conditions than headquarters management could be |
| |
span of control |
the optimum number of subordinates a manager supervises or should surpervise |
| |
tall organization structure |
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of magement |
| |
flat organization structure |
an organization structure that has few layers of management and a broad span of control |
| |
departmentalization |
the dividing of organizational functions into separate units |
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line organization |
an organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor |
| |
line personnel |
employees who are part of the chain of command that is responsible for achieving organizational goals |
| |
staff personnel |
employees who advise and assist line personnel in meeting their goals |
| |
matrix organization |
an organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure |
| |
cross-functional self-managed teams |
groups of employees from differrent departments who work together on a long-term basis |
| |
networking |
using communications technology and other means to link organiztions and allow them to work together on common objectives |
| |
real time |
the present moment or the actual time in which something takes place |
| |
transparency |
a concept that describes a company being so open to other companies working with it that the once-solid barriers between them become see-through and electronic information is shared as if the companies were one |
| |
virtual corporation |
a temporary networked organization made up of replaceable firms that join and leave as needed |
| |
benchmarking |
coomparing an organizations practices, processes, and products against the worlds best |
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core competencies |
those functions that the organization can do as well as or better than any other organization in the world |
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restructuring |
redesigning an organization so that it can more effectively and efficiently serve its customers |
| |
inverted organization |
n organization that has contact people at the top and the chief executive officer at the bottom of the organization chart |
| |
organizational (or corporate) culture |
widely shared values within an organization that provide unity and cooperation to achieve common goals |
| |
formal organization |
the structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts |
| |
informal organization |
the system of relationships and lines of authority that develops spontaneously as employees meet and form power centers; that is, the human side of the organization that does not appear on any organization chart |
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