organizing the business enterprise -- terms

business essentials -- part 6 -- terms

organizational structure -- specification of the jobs to be done within an organization and the ways in which they relate to one another
organization chart -- diagram depicting a company structure and showing employees where they fit into its operations
chain of command-- reporting relationships within a company
job specialization -- the process of identifying the specific jobs that need to be done and designating the people who will perform them
departmentalization -- process of grouping jobs into logical units
profit center -- separate company unit responsible for its own costs and profit
customer departmentalization -- departmentalization according to types of customers likely to buy a given product
product departmentalization -- departmentalization according to specific products being created
process departmentalization -- departmentalization according to production processes used to create a good or service
geographic departmentalization -- departmentalization according to areas served by a business
functional departmentalization -- departmentalization according to groups functions or activities
responsibility -- duty to perform an assigned task
authority -- power to make the decisions necessary to complete a task
delegation -- an assignment of a task, responsibility, or authority by manager to a subordinate
accountability -- liability of subordinates for accomplishing tasks assigned by managers
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 and relatively wide spans of control
tall organizational structure -- characteristic of centralized companies with multiple layers of management and relatively narrow spans of control
span of control -- number of people supervised by one manager
line authority -- organizational structure in which authority flows in a direct chain of command from the top of the company to the bottom
line department -- a department directly linked to the production and sales of a specific product
staff authority -- authority based on expertise that usually involves advising line managers
staff members -- advisers and counselors who aid line departments in making decisions but do not have the authority to make final decisions
committee and team authority -- authority granted to committees or work teams involved in a firm's daily operations
functional organization -- forms of business organization in which authority is determined by the relationships between group functions and activities
divisional organization -- organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella
division -- the department that resembles a separate business in producing and marketing its own products
matrix structure -- and organizational structure in which teams are formed in team members report to two or more managers
international organizational structures -- approach is to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets
informal organization -- network, unrelated to the firm's formal authority structure, of everyday social interactions among company employees
grapevine -- in formal communication network that runs through an organization
intrapreneuring -- process of creating and maintaining the innovation and flexibility of a small business environment within the confines of a large organization