Basics of Organizations
A systematic grouping of individuals which have been brought together to accomplish a common goal
Organization
Refers to the rights of a supervisory position to give orders; one person’s position over another
Authority
Arrange and group jobs based on specific tasks in order to enhance efficiency; increase the effectiveness of communication and reporting
Organizational Structures
Individually selling products directly to the customer
Retail
A wholesaler buys a product for $10 and sets a markup of 20%. What is the selling price?
$12.00
What are the 4 organizational levels.
Operative employees, supervisors, middle managers, top management
The number of employees a supervisor can direct
Span of Control
Are laid-back and undefined; involve employees completing tasks which may not always fit their job description; normally found in smaller businesses with fewer employees
Informal Structures
A third party that acts as a middleman between connecting people and things
Intermediary
A retailer buys shirts for $15 each and wants to sell them for $22.50. What is the markup percentage?
50%
Sets an organization’s goals and objectives; develops methods for achieving goals and objectives; is the head of the organization
Top Management
Occurs when decisions are made by the individuals who are the closest to the problem; more conducive to making changes in a process
Decentralization
In what type of business structure is there a dual chain of command and authority is shared between two supervisors?
Matrix Organization
Specialized area of sales targeting a specific group rather than the mass
Niche Market
A wholesaler buys 100 bottles of detergent at $2 each and wants to make a profit of $0.50 per bottle. What is the selling price per bottle?
$2.50
Which of the following types of departmentalization groups activities based on work or custome
Process Departmentalization
The most straightforward form of authority; gives the supervisor the right to direct the work of his or her employees without consulting others
Line Authority
What organization is not defined or limited, increasing its interdependence with its environment?
Boundaryless Organization
The differences between the initial cost of a product and the price a wholesaler charges retailers
A store buys laptops for $400 each and applies a 25% markup. After a 10% discount during a sale, what is the final selling price?
$450
Have developed a capacity to continuously adapt and change because members take an active role in identifying and resolving work-place issues; employees must collaborate on work activities throughout the organization and have a team oriented work ethic
Learning Organization
Signifies the rights over individuals outside of an individual’s specific division; breaks the chain of command
Functional Authority
What type of organization has developed a capacity to continuously adapt and change because members take an active role in identifying and resolving work-place issues?
Learning Organization
A collection and analysis of data about consumers, competition and the environment
Market Research
A company wants a 30% profit on a product that costs $120. They also know they have additional costs of $15 per unit. What should the selling price be to achieve the 30% profit?
$171