Fundamentals of Management Chapter 6 Key Terms

the function of management that creates the organization’s structure
organization design
when managers develop or change the organization’s structure
work specialization
dividing work activities into separate job tasks; also called division of labor
how jobs are grouped together
functional departmentalization
grouping activities by functions performed
product departmentalization
grouping activities by major product ares
customer departmentalization
grouping activities to respond to and interact with specific customers or customer groups
geographic departmentalization
grouping activities on the basis of geography or territory
process departmentalization
Grouping jobs on the basis of product or customer flow
cross-functional teams
Teams made up of individuals from various departments and that cross traditional departmental lines
chain of command
the line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom
the rights inherent in a managerial position to give orders and expect the orders to be obeyed
an obligation to perform assigned duties
line authority
authority that entitles a manager to direct the work of an employee
staff authority
Positions with some authority that have been created to support, assist, and advise those holding line authority
unity of command
Structure in which each employee reports to only one manager
an individual’s capacity to influence decisions
span of control
the number of employees a manager can efficiently and effectively supervise
the degree to which decision making takes place at upper levels of the organization
the degree to which lower-level managers provide input or actually make decisions
how standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures
mechanistic organization
a bureaucratic organization; a structure that’s high in specialization, formalization, and centralization
organic organization
A structure that’s low in specialization, formalization, and centralization
unit production
the production of items in units or small batches
mass production
large-batch manufacturing
process production
continuous flow or process production
simple structure
An organizational design with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization
functional structure
An organizational design that groups similar or related occupational specialties together
divisional structure
An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.
team structure
An organizational structure in which the entire organization is made up of work teams
matrix structure
A structure in which specialists from different functional departments are assigned to work on projects led by a project manager
project structure
A structure in which employees continuously work on projects
boundaryless organization
An organization whose design is not defined by, or limited to, boundaries imposed by a predefined structure
virtual organization
an organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects
network organization
An organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes
learning organization
an organization that has developed the continuous capacity to adapt and change
work arrangement in which employees work away from a company’s standard workplace and often communicate with the office through the computer.
compressed workweek
A workweek where employees work longer hours per day but fewer days per week
flextime (flexible work hours)
Work schedule that requires employees to work an established number of hours per week but allows starting and ending times to vary.
job sharing
The practice of having two or more people split a full-time job
contingent workers
temporary, freelance, or contract workers whose employment is contingent upon demand for their services
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