Chapter 7: Organizing for Success

Vocabulary flashcards defining foundational organizational concepts from Chapter 7, including organizational structures, authority, delegation, departmentalization, and agility strategies.

Organization chart

The reporting structure and division of labor in an organization.

Division of labor

The work of the organization is subdivided into smaller tasks to be performed by individuals and work units.

Specialization

Different people or groups perform specific parts of a larger task.

Mechanistic organization

A form of organization that seeks to maximize internal efficiency.

Organic structure

An organizational form that emphasizes flexibility.

Differentiation

An aspect of the organization's internal environment created by job specialization and the division of labor.

Integration

The degree to which differentiated units are put back together so that work is coordinated into an overall product.

Coordination

Procedures linking various parts of an organization for the purpose of achieving its overall mission.

Centralization

The degree to which decision making authority is concentrated at higher levels in an organization.

Decentralized companies

Organizations that give more authority to lower level employees, resulting in a sense of empowerment.

Formalization

The extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated.

Tall organization

An organization characterized by several layers of management between frontline employees and top level, fewer employees reporting to each manager, and narrow spans of control.

Flat organization

An organization characterized by few management layers, a larger number of employees reporting to each manager, wide spans of control, and greater levels of freedom for each employee.

Span of control

The number of employees reporting to a single manager.

Functional structures

Organizational structures where separate units are responsible for particular business functions, grouping jobs based on similarity in functions.

Divisional structures

Organizational structures where departments represent the unique products, services, customers, or geographic locations the company is serving.

Authority

The legitimate right to make decisions and tell others what to do.

Responsibility

A task that an employee is supposed to carry out.

Delegation

The assignment of new or additional responsibilities to a subordinate.

Accountability

The expectation that employees will perform a job, take corrective action when necessary, and report their performance.

Matrix structure

An organizational structure that combines functional and product departmentalization, featuring a dual chain of command where employees report to both department managers and project/product team leaders.

Network organization

A collection of independent, mostly single-function firms that collaborate on a good or service.

Coordination by plan

A coordination method in which interdependent units are required to meet deadlines and objectives that contribute to a common goal.

Coordination by mutual adjustment

A coordination method in which units interact with one another to make accommodations to achieve flexible coordination.

Agility

Being able to act fast to meet customer needs and respond to other outside pressures.

Strategic alliance

A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.

Total quality management (TQM)

An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high quality goods and services.

Small batch

Technologies that produce goods and services in low volume.

Large batch

Technologies that produce goods and services in high volume.

Continuous process

A production process that is highly automated and has a continuous production flow.

Mass customization

The production of varied, individually customized products at the low cost of standardized, mass-produced products.

Lean manufacturing

An operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

Just-in-Time (JIT)

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.