Organizational Structure Glossary (Page 1)

Vocabulary flashcards covering key terms from Page 1 notes on organizational structure.

AUTHORITY

The formally granted influence of an individual to make decisions, pursue goals, and obtain the resources necessary to support those decisions and goals

CHAIN OF COMMAND

The flow of authority within an organization; also known as line of command

DEPARTMENTALIZATION

The way departments are defined and arranged

DIVISION OF LABOR

Dividing a large job into units, or job tasks, and assigning an individual to each of the tasks

DIVISIONAL STRUCTURE

An organizational design in which the firm is divided into units according to factors such as product, process, territory, customer type, etc.

FUNCTIONAL STRUCTURE

An organizational design in which the firm is divided into traditional departments, each with its own set of responsibilities and activities (marketing, operations, sales, IT, etc.)

MATRIX STRUCTURE

An organizational design that combines the traditional functional structure with the divisional structure

ORGANIZATIONAL CHART

A graphical representation of the flow of authority within the organization

ORGANIZATIONAL STRUCTURE

The company's configuration of employees for accomplishing specific business tasks; how the business is organized

ORGANIZING

The management function of setting up the way the business's work will be done

SCALAR PRINCIPLE

Creating authority that flows in a clear, continuous line

SPAN OF CONTROL

The measurement of how many workers are supervised by one manager

SPECIALIZATION

An employee's narrow focus on one task or area of expertise

UNITY OF COMMAND

A principle that states no employee should answer to more than one supervisor at a time