Chapter 7

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  1. Span of Management
    Span of management = the number of employees reporting to a supervisor

  2. Organizing
    Is the deployment of organizational resources to achieve strategic goals.
  3. Organzation Structure
    is defined as the set of formal tasks assigned to individuals and departments
  4. Centralization and decentralization
    centralization: decision authority is located near the top of the organization

    decentralization: decision authority is pushed downward to lower organization levels

    • Factors:
    • Greater change and uncertainty are usually associated with decentralization

    Centralization or decentralization should fit the firm's strategy.
  5. Chain of Command
    a link of unbroken line of authority that links all employees in an organization and shows who reports to whom.
  6. Functional and Divisional
    • Vertical Functional approach
    • Grouping of positions into departments based on skills, expertise, work activities and resource use.
    • ----------------------------------------------
    • Divisional Approach
    • Grouping based on organizational output
    • product program business
    • Geographic or customer based division.
  7. Matrix


    Team Approach
    Matrix approach combines functional and divisional approaches

    improve coordination and information

    dual lines of authority.

    • --------------
    • Team Approach is very widespread trend 
    • -allows managers to delegate authority
    • -flexible, responsive
  8. Team Approach
    Widespread trend in departmentalization

    Allows managers to delegate authority to lower levels

    Use of cross functional teams which include members from various departments

    Permanent teams are organized like a department for a specific task or project.
  9. Virtual Network Approach
    Extends idea of horizontal coordination and collaboration

    • Partnership
    • Alliances

    • Could be a loose interconnected group 
    • i.e outsourcing

    Virtual Network structure means that the firm subcontracts most of its major functions to separate companies.
  10. Organizing for Horizontal Coordination
    • Companies need more flexibility than vertical structure can offer
    • -Meet fast shifting environment
    • -Break down barriers between departments
    • -need integration and coordination.

    • Lack of coordination and cooperation can cause information problems
    • -growing global challenge
  11. Task Forces,teams and project management
    Task force - a temporary team or committee formed to solve a specific short term problem involving several departments

    • Cross Functional Team
    • Furthers horizontal coordination by including members across the organization.

    Project Manager: A person responsible for coordinating the activities of several departments on a full time basis for the completion of a specific project.
  12. Structure fits the TEchnology
    Technology: knowledge tools techniques and activities

    -Technology varies but it can impact structure

    Difference among three manufacturing technologies is technical complexity:

    • -Small batch and unit production
    • -large batch and mass production
    • -Continuous process production.
  13. Service Technology
    Service organizations include consulting companies , airlines, hotels, amusement parks and educational organizations

    • Service Technology defined as:
    • -Intangible output
    • -Direct Contact with Customers
    • -Need More interaction horizontal Communication
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Chapter 7
2013-03-27 18:43:32

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