Build the Organization
Dividing organizational tasks among employees so that different people perform different parts of the work is called this.
What is division of labor?
This principle says each employee should report to one, and only one, boss.
What is unity of command?
When most important decisions are made by top management at company headquarters, the organization uses this approach.
What is centralized authority?
In this simple structure, authority and communication flow directly from the top to the bottom, and each person reports to one supervisor.
What is a line organization?
Comparing your organization’s practices, processes, and products with the world’s best is known as this.
What is benchmarking?
Dividing tasks into smaller jobs so employees become especially skilled at particular activities is called this.
What is job specialization?
This principle says all workers should know to whom they report and establishes a clear line of authority.
What is hierarchy of authority?
When lower-level managers are given decision-making authority because they understand local conditions, the organization uses this approach.
What is decentralized authority?
In this structure, experts such as HR, legal, IT, or marketing research advise the employees who directly accomplish organizational goals.
What is a line-and-staff organization?
Hiring another organization to perform a function such as manufacturing, accounting, maintenance, or shipping is called this.
What is outsourcing?
The process of grouping specialized activities into units such as marketing, production, accounting, or maintenance is called this.
What is departmentalization?
This theorist emphasized written job descriptions, rules, procedures, qualifications, and consistent policies.
Who is Max Weber?
This term describes the optimal number of employees a manager supervises.
What is span of control?
In this organizational model, employees from different departments work together temporarily on a project and may be accountable to both a project manager and their functional department.
What is a matrix organization?
These are the functions an organization performs as well as or better than anyone else in the world.
What are core competencies?
This visual tool shows who reports to whom, who is accountable for specific work, and how organizational responsibilities are divided.
What is an organization chart?
Weber believed large organizations needed clearly established rules and procedures. This type of organization eventually became associated with many management layers and extensive rules.
What is bureaucracy?
This type of structure has relatively few levels of management and usually a broad span of control.
What is a flat organizational structure?
These long-term groups bring employees from different departments together and give them authority to make decisions without management approval.
What are cross-functional self-managed teams?
This temporary networked organization consists of replaceable firms that join and leave as needed.
What is a virtual corporation?
A landscaping company grows rapidly. The owner creates separate accounting, marketing, equipment-maintenance, and field-service units. This organizational decision best illustrates this concept.
What is departmentalization?
A company requires every employee to follow an exact written procedure so employees do not have to stop and make individual decisions. This arrangement most closely reflects the organizational thinking of this theorist.
Who is Max Weber?
A national retailer allows managers in North Carolina, California, and Maine to choose different merchandise because local customer preferences vary. This is an example of this structural choice.
What is decentralized authority?
A software engineer normally reports to the VP of Engineering but is temporarily assigned to a new-product team led by a project manager. The employee now faces two sources of authority. This is characteristic of this organizational structure.
What is a matrix organization?
Nike focuses on designing and marketing shoes while other companies manufacture them more efficiently. Designing and marketing represent these organizational strengths.
What are core competencies?