mie 201 ch 7

organizational culture

a firm’s shared values, beliefs, traditions, principles, rules, and role models for behavior.

structure

the arrangement or relationship of positions within an organization.

organizational chart

a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication.

specialization

the division of labor into small, specific tasks and the assignment of employees to do a single task.

departmentalization

the grouping of jobs into working units usually called departments, units, or divisions.

functional departmentalization

the grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.

product departmentalization

the organization of jobs in relation to the products of the firm.

geographical departmentalization

the grouping of jobs according to geographic location, such as state, region, country, or continent.

customer departmentalization

the arrangement of jobs around the needs of various types of customers.

delegation of authority

giving employees not only tasks but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks.

responsibility

the obligation, placed on employees through delegation, to perform assigned tasks satisfactorily and be held accountable for the proper execution of work.

accountability

the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.

centralized organization

a structure in which authority is concentrated at the top and very little decision-making authority is delegated to lower levels.

decentralized organization

an organization in which decision-making authority is delegated as far down the chain of command as possible.

span of management

the number of subordinates who report to a particular manager.

organizational structure

the levels of management in an organization.

line structure

the simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization.

line-and-staff structure

a structure having a traditional line relationship between superiors and subordinates and also specialized managers—called staff managers—who are available to assist line managers.

restructure

to change the basic structure of an organization.

multidivisional structure

a structure that organizes departments into larger groups called divisions.

matrix structure

a structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called a project management structure.

group

two or more individuals who communicate with one another, share a common identity, and have a common goal.

team

a small group whose members have complementary skills; have a common purpose, goals, and approach; and hold themselves mutually accountable.

committee

a permanent, formal group that performs a specific task.

task force

a temporary group of employees responsible for bringing about a particular change.

project organization

a company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration.

product-development teams

a specific type of project team formed to devise, design, and implement a new product.

quality-assurance teams (or quality circles)

small groups of workers brought together from throughout the organization to solve specific quality, productivity, or service problems.

self-directed work team (SDT)

a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.

Upward communication

Communication that flows from lower to higher levels of an organization. (EX: Progress reports, suggestions for improvement, inquiries, and grievances.)

Downward communication

Communication that flows from upper to lower levels of an organization. (EX: Directions, task assignments, performance feedback, strategies and goals, speeches, employee handbooks, and job descriptions.)

Horizontal communication

Exchange of information among colleagues and peers at the same organizational level. (EX: Task forces, project teams, and finance communicating with marketing about budget requirements.)

Diagonal communication

Communication between individuals in different departments and at different organizational levels. (EX: A finance manager communicating with a lower-level manager in the marketing department.)

grapevine

an informal channel of communication, separate from management’s formal, official communication channels.