MGMT Chapter 10

Organizing
Deployment 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
Sometimes called division of labor, is the degree to which organizational tasks are subdivided into individual jobs
Chain of Command
An unbroken line of authority that links all individuals in the organization and specifies who reports to whom
Line Authority
Refers to formal power to direct and control immediate subordinates
Staff Authority
Refers to the right to advise, counsel, and recommend in the manager’s area of expertise
Span Management
Sometimes called span of control, refers to the number of employees reporting to a supervisor
Tall Structure
Characterized by an overall narrow span of management and a relatively large number of hierarchical levels
Flat Structure
Characterized by an overall broad span of management and relatively few hierarchical levels
Decentrialization
Decision authority is pushed down to lower organization levels
Centralization
Decision authority is located near top organization levels
Functional Structure
Groups employees into department based on similar skills, tasks, and use of resources
Divisional Structure
Groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks
Matrix Approach
Uses both functional and divisional chains of command simultaneously, in the same part of the organization
Departmentalization
The basis for grouping individuals into departments and departments into the total organization
Cross Functional Team
Group of employees from various functional departments that meet as a team to resolve mutual problems
Permanent Team
Group of employees from all functional areas permanently assigned to focus on a specific task or activity
Team Based Structure
The entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals
Virtual Network Structure
The organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization
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 for the completion of a specific project
Relational Coordination
Refers to frequent horizontal coordination and communication carried through ongoing relationships of shared goals, shared knowledge, and mutual respect