PBAM Unit 6

Organizing

Key management process that should be conducted with equal awareness within the internal and external environment of a company.

Organizational Structure

Specification of the jobs to be done within an organization and the ways in which they relate to one another.

Specialization

Determining who will do what.

Departmentalization

Determining how people performing certain tasks can best be grouped together.

Profit center

Separate company unit responsible for its own costs and profits.

Organization Charts

Specification of the jobs to be done within an organization and the ways in which they relate to one another.

Chain of Command

The solid lines in an organizational chart that show reporting relationships within a company.

Unstructured companies

Tend to be more adaptable to their environments than structured companies.

Job Specialization

The process of identifying the specific jobs that need to be done and designating the people who will perform them.

Natural part of organizational growth

Employees looking at specialization chart to find out how their job relates to others they typically will look within their department.

Departmentalization

Functional Departmentalization, Product Departmentalization, Process Departmentalization, Customer departmentalization, Geographic Departmentalization.

Centralization and Decentralization

Establishment of a Decision-Making Hierarchy.

Centralized Organization

Organization in which most decision-making authority is held by upper-level management.

Decentralized Organization

Organization in which a great deal of decision-making authority is delegated to levels of management at points below the top.

Flat organizational structure

Characteristic of decentralized companies with relatively few layers of management.

Tall organizational structure

Characteristic of centralized companies with multiple layers of management.

Delegation

Process through which a manager allocates work to subordinates.

Assigning responsibility

The duty to perform an assigned task.

Granting authority

The power to make the decisions necessary to complete the task.

Creating accountability

The obligation employees have for the successful completion of the task.

Line authority

Organizational structure in which authority flows in a direct chain of command from the top of the company to the bottom.

Staff Authority

Authority based on expertise that usually involves counseling and advising line managers.

Staff members

Advisers and counselors who help line departments in making decisions but who do not have the authority to make final decisions.

Committee and team authority

Authority granted to committees or teams involved in a firm’s daily operations.

Work team

Group of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision.

Virtual Organization

only a handful of permanent employees, a very small staff, and a modest administrative facility

Learning organization

works to facilitate the lifelong learning and personal development of all of its employees while continually transforming itself to respond to changing demands and needs

Team Organization

relies almost exclusively on project-type teams, with little or no underlying functional hierarchy

International Organization structures

approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets

Matrix structure

organizational structure created by superimposing one form of structure onto another

Divisional structure

organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella

Functional structure

organization structure in which authority is determined by the relationships between group functions and activities

Functional Departmentalization

dividing an organization according to groups’ functions or activities. This is Effective for small/new organizations

Product Departmentalization

dividing an organization according to specific products or services being created. This helps focus on special product lines

Process Departmentalization

dividing an organization according to production processes used to create a good or service

Customer departmentalization

dividing an organization to offer products and meet needs for identifiable customer groups

Geographic Departmentalization

dividing an organization according to the areas of the country or the world served by a business

Intrapreneur

process of creating and maintaining the innovation and flexibility of a smallbusiness environment within the confines of a large organization

Informal Organization

network, unrelated to the firm’s formal authority structure, of everyday social interactions among company employees

Product Champion

a manager who hears about a new project/idea and becomes committed to the support of the idea

sponsors

These people typically move a new idea into a marketable idea and approve/support the project

Inventors

A person who conceives and develops the new idea, product, or service within the organizations