Download Organizational Management: Principles and Structures and more Quizzes Business Research Methods for Managers in PDF only on Docsity! TERM 1 ORGANIZING/STRUCTURING an ORGANIZATION DEFINITION 1 Create a division of labor; Specialization Set up teams/departments Assign tasks/responsibility Allocate resources Develop procedures/org chart Adjust to new realities TERM 2 Economies of Scale DEFINITION 2 Companies can reduce their production costs by purchasing raw materials in bulk TERM 3 FAYOLS PRINCIPLES OF ORGANIZATION DEFINITION 3 Unity of command, Hierarchy of authority, Division of labor, Subordination of individual interests to the general interest, Authority, Degree of centralization, Clear communication channels, Order, Equity, Esprit de corps TERM 4 WEBERS PRINCIPLES DEFINITION 4 Employees just need to do what theyre told. In addition to Fayols principles, Weber emphasized: Job descriptions, Written rules, decision guidelines and detailed records, Consistent procedures, regulations and policies, Staffing and promotion based on qualifications TERM 5 Hierarchy DEFINITION 5 A system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down TERM 6 Chain of Command DEFINITION 6 The line of authority that moves from the top of the hierarchy to the lowest level TERM 7 Bureaucracy DEFINITION 7 An organization with many layers of managers who set rules and regulations and oversee all decisions TERM 8 Decentralized Authority DEFINITION 8 When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters TERM 9 Centralized Authority DEFINITION 9 When decision-making is concentrated at the top level of management TERM 10 Span of Control DEFINITION 10 The optimal number of subordinates a manager supervises or should supervise. When work is standardized, broad spans of control are possible. Appropriate span narrows at higher levels of the organization. The trend today is to reduce middle managers and hire better low-level employees TERM 21 Benchmarking DEFINITION 21 Compares an organizations practices, processes and products against the worlds best TERM 22 Core Competencies DEFINITION 22 The functions an organization can do as well as or better than any other organization in the world. Virtual corporations are one result of a focus on core competencies TERM 23 Restructuring DEFINITION 23 Redesigning an organization so it can more effectively and efficiently serve its customers (we fear change!) TERM 24 Inverted Organization DEFINITION 24 An organization that has contact people at the top and the CEO at the bottom of the organizational chart TERM 25 Organizational or Corporate Culture DEFINITION 25 The widely shared values within an organization that foster unity and cooperation to achieve common goals TERM 26 Formal Organization DEFINITION 26 Details lines of responsibility, authority and position The formal system is often slow and bureaucratic but it helps guide the lines of authority TERM 27 Informal Organization DEFINITION 27 The system of relationships that develop spontaneously as employees meet and form relationships
