KEY TERMS – CHAPTER 10

organizing                                          Arranging and structuring work to accomplish the organization’s goals.

organizational structure                   The formal arrangement of jobs within an organization.

organizational design                        Developing or changing an organization’s structure.

work specialization                            Dividing work activities into separate job tasks.

departmentalization                          The basis by which jobs are grouped together.

functional departmentalization        Grouping jobs by functions performed.

product departmentalization            Grouping jobs by product line.

geographical departmentalization   Grouping jobs on the basis of geographical region.

process departmentalization             Grouping jobs on the basis of product or customer flow.

customer departmentalization          Grouping jobs on the basis of specific and unique customers who have common needs.

cross-functional teams                      Work teams composed of individuals from various functional specialties.

chain of command                             The line of authority extending from upper organizational levels to the lowest levels, which clarifies who reports to whom.

authority                                            The rights inherent in a managerial position to tell people what to do and to expect them to do it.

responsibility                                      The obligation to perform any assigned duties.

unity of command                             The management principle that each person should report to only one manager.

span of control                                   The number of employees a manager can efficiently and effectively manage.

centralization                                     The degree to which decision making is concentrated at upper levels of the organization.

decentralization                                 The degree to which lower-level employees provide input or actually make decisions.

employee empowerment                   Giving employees more authority (power) to make decisions.

formalization                                     How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures.

mechanistic organization                  An organizational design that’s rigid and tightly controlled.

organic organization                         An organizational design that’shighly adaptive and flexible.

unit production                                  Producing items in units or small batches.

mass production                                Producing items in large batches.

process production                            Producing items in continuous processes.

simple structure                                 An organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization.

functional structure                          An organizational design that groups similar or related occupational specialties together.

divisional structure                            An organizational structure made up of separate, semiautonomous units or divisions.

team structure                                   An organizational structure in which the entire organization is made up of work groups or teams.

matrix structure                                An organizational structure that assigns specialists from different functional departments to work on one or more projects.

project structure                                An organizational structure in which employees continuously work on projects.

boundaryless organization               An organization whose design is not defined by, or limited to, the horizontal, vertical, and horizontal boundaries imposed by a predefined structure.

virtual organization                           An organization that consists of a small core of full-time employees and thathires outside specialists temporarily 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 capacity to continuously learn, adapt, and change.

organizational chart                          A visual drawing of an organization’s structure.