 | Term | Definition |
| |
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. |
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Authority |
The legitimate right to make decisions and to tell other people what to do. |
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Centralized organization |
An organization in which high-level executives make most decisions and pass them down to lower levels for implementation. |
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Coordination |
The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission. |
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Corporate governance |
The role of a corporation’s executive staff and board of directors in ensuring that |
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Decentralized organization |
An organization in which lower-level managers make important decisions |
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Delegation |
The assignment of new or additional responsibilities to a subordinate |
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Departmentalization |
Subdividing an organization into smaller subunits. |
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Differentiation |
An aspect of the organization’s internal environment created by job specialization and the division of labor. |
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Division of labor |
means that the work of the organization is subdivided into smaller tasks. |
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Functional organization |
Departmentalization around specialized activities such as production, marketing, and human resources |
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Hierarchy |
The authority levels of the organizational pyramid |
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Integration |
The degree to which differentiated work units work together and coordinate their efforts. |
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Line departments |
Units that deal directly with the organization’s primary goods and services |
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Matrix organization |
superiors—a functional manager and a divisional manager |
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Organization chart |
The reporting structure and division of labor in an organization. |
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Span of control |
The number of subordinates who report directly to an executive or supervisor. |
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Specialization |
refers to the fact that different people or groups often perform specific parts of the entire task. |
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Staff departments |
Units that support line departments. |
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Standardization |
Establishing common routines and procedures that apply uniformly to everyone |
| |
Value chain |
is the sequence of activities that flow from raw materials to the delivery of a product or service, with additional value created at each step |
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