What is the key to success for businesses in a changing economy?
Remaining flexible and adapting to change
Who created the original principles of organizational management?
Henri Fayol
What are the four main choices managers make when structuring organizations?
Centralization, span of control, tall vs. flat structures, and departmentalization
What are the two traditional organizational models?
Line and line-and-staff
What is networking?
Linking organizations through technology to achieve common goals
What does structuring an organization involve?
Division of labor, assigning responsibility, setting up teams, and allocating resources
What is “unity of command”?
Each worker should report to only one manager
What does “decentralization”mean?
Distributing decision-making power to lower levels of management
Who gives expert advice in a line-and-staff organization?
Staff assistants
What is a virtual corporation?
A networked organization of replaceable firms that join and leave as needed
What is specialization a result of?
Division of labor
What did Max Weber add to Fayol’s ideas?
Bureaucratic principles like written rules and job descriptions
What happens to the span of control as employees become self-directed?
It becomes larger
What is one benefit of a line organization?
Clear authority and responsibility
What does benchmarking do?
Compares a company’s performance to competitors
What kind of decisions must managers make about workers?
Ethical decisions
What was Weber’s view on staffing and promotions?
They should be based on qualifications
What are matrix organizations and cross-functional teams used for?
Decentralizing authority and improving teamwork
What do matrix organizations encourage?
Cooperation across departments
What is an inverted organization?
Puts employees at the top and managers at the bottom to assist them
What economic system causes markets to change, creating winners and losers?
Capitalism
What principle emphasizes fairness within the workplace?
Equity
What trend involves eliminating managers?
Flattening the organization
What kind of teams combine the benefits of matrix structure and long-term cooperation?
Cross-functional self-managed teams
What’s the difference between formal and informal organization?
Formal = official hierarchy
Informal = natural human relationships and communication lines