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Identifying Tasks
Determine what needs to be done.
Grouping Activities
Group similar tasks into departments or teams.
Assigning Tasks
Assign work based on skills and roles.
Delegating Authority
Provide decision-making power to subordinates.
Establishing Relationships
Set up reporting lines and communication channels.
Coordinating Efforts
Ensure cooperation across units.
Functional Structure
Organized based on job functions (e.g., marketing, sales, finance).
Divisional Structure
Organized by product, location, or customer type.
Matrix Structure
Combines functional and divisional. Employees report to two managers.
Network Structure
Core functions are kept in-house; others are outsourced.
Holding Company Structure
A parent company owns various independent businesses.
Delegation of Authority
The process of assigning tasks along with the power to make decisions.
Span of Control
Refers to how many subordinates report directly to a manager.
Wide Span
Many subordinates → flatter structure.
Narrow Span
Few subordinates → taller structure.
Responsibility
Obligation to perform.
Authority
Right to make decisions.
Accountability
Answerability for outcomes.