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The development of organizational resources to achieve strategic goals

Organization Structure

The framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated

Organization Chart

The visual representation of an organization's structure

Work Specialization

The degree to which organizational tasks are subdivided into individual jobs; also called division of labor

Chain of Command

An unbroken line of authority that links all individuals in the organization and specifies who reports to whom


The formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes


The duty to perform the task or activity an employee has been assigned


The fact that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command


The process managers use to transfer authority and responsibility to positions below them in the hierarchy

Line Authority

A form of authority in which individuals in management positions have the formal power to direct and control immediate subordinates

Staff Authority

A form of authority granted to staff specialists in their area of expertise

Span of Management

The number of employees reporting to a supervisor; also called span of control

Tall Structure

A management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels

Flat Structure

A management structure characterized by an overall broad span of control and relatively few hierarchical levels


The location of decision authority near top organizational levels


The location of decision authority near lower organizational levels


The basis on which individuals are grouped into departments and departments into the total organization

Functional Structure

The grouping of positions into departments based on similar skills, expertise, and resource use

Divisional Structure

An organization structure in which departments are grouped based on similar organizational outputs

Matrix Approach

An organization structure that uses functional and divisional chains of command simultaneously in the same part of the organization

Two-Boss Employees

Employees who report to two supervisors simultaneously

Matrix Boss

The product or functional boss, responsible for one side of the matrix

Top Leader

The overseer of both the product and functional chains of command; responsible for the entire matrix

Cross-Functional Team

A group of employees from various functional departments that meet as a team to resolve mutual problems

Permanent Teams

A group of participants from several functions who are permanently assigned to solve ongoing problems of common interest

Team-Based Structure

Structure in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish the organization's goals

Virtual Network Structure

An organization structure that disaggregates major functions to separate companies that are brokered by a small headquarters organization

Modular Approach

The process by which a manufacturing company uses outside suppliers to provide large components of the product, which are then assembled into a final product by a few workers


The quality of collaboration across departments

Task Force

A temporary team or committee formed to solve a specific short-term problem involving several departments

Project Manager

A person responsible for coordinating the activities of several departments on a full-time basis for the completion of a specific project


The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed; also called business process reengineering


An organized group of related tasks and activities that work together to transform inputs into outputs and create value

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