Chapter 15 BUAD Terms

The way in which job tasks are formally divided, grouped, and coordinated ( 6 elements: work specialization, departmentalization, chain of command, span of control, centralization and formalization)

The degree to which tasks in an organization are subdivided into separate jobs...but human diseconomies can emerge such as boredom, fatigue, stress, low productivity, poor quality, absenteeism and turnover

The basis by which jobs in an organization are grouped together (popular way to group activities is by functions performed, geography, by process, or by customer type)

The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

The rights inherent in a managerial position to give orders and to expect the orders to be obeyed

The idea that a subordinate should have only one superior to whom he or she is directly responsible (if broken, employee may have to deal with conflicting demand/priorities of several superiors)

The number of subordinates a manager can efficiently and effectively direct (the wider/larger the span, the more efficient the organization)...large may have less control but less cost...narrow are expensive, complicate vertical communication, and leads to less autonomy/tight supervision

The degree to which decision making is concentrated at a single point in an organization (top managers make all decisions, lower managers carry out orders)...based on formal authority but more employees alienated

The degree to which jobs within an organization are standardized (high formalization =low employee discretion with problem)

An organization structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization...it is "flat" (difficult to maintain in anything other than small organization when it creates info overload, , decision-making slows

An organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command (highly efficient at performing standardized tasks and use less costly workers/managers, but can obsessively concern with following the rules)

An organization structure that creates dual lines of authority and combines functional and product departmentalization (strength: puts like specialists together, minimizes number, pools resources---weakness: difficulty coordinating tasks of diverse specialists on-time and within budget)...breaks unity-of-command concept with both functional dept managers and product managers with role conflict/ambiguity, insecurity, and stress)

A small, core organization that outsources major business functions (new design option), highly centralized with little departmentalization, often contracts outside the company, cultural allignment and goals can be lost with little contact and fluxes [needs leadership presence with strong purpose and facilitates communication)

An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams (new design option)...tends to be a lean organization and budget, stock price will rise after announcement but it is necessary to restructure, employee attitudes may decline. Prepare and stop negative attitudes by: investment in high-involvement work practices, communicate with employees about outcome/feelings, participation through voluntary layoff, assistance in providing help/benefits

A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization (synonymous with bureaucracy)