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Fundamentals of Management , Third Edition
Ricky W. Griffin, Texas A&M University
Glossary by Chapter

Chapter 6 Organization Structure and Design

authority Power that has been legitimized by the organization

bureaucracy A model of organization design based on a legitimate and formal system of authority

centralization The process of systematically retaining power and authority in the hands of higher-level managers

chain of command A clear and distinct line of authority among the positions in an organization

conglomerate (H-form) design Used by an organization made up of a set of unrelated businesses

coordination The process of linking the activities of the various departments of the organization

customer departmentalization Grouping activities to respond to and interact with specific customers or customer groups

decentralization The process of systematically delegating power and authority throughout the organization to middle and lower-level managers

delegation The process by which a manager assigns a portion of his or her total workload to others

departmentalization The process of grouping jobs according to some logical arrangement

differentiation Extent to which the organization is broken down into subunits

divisional (M-form) design Based on multiple businesses in related areas operating within a larger organizational framework

functional (U-form) design Based on the functional approach to departmentalization

functional departmentalization Grouping jobs involving the same or similar activities

integration Degree to which the various subunits must work together in a coordinated fashion

job characteristics approach An alternative to job specialization that suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences

job enlargement An alternative to job specialization that involves giving the employee more tasks to perform

job enrichment An alternative to job specialization that involves increasing both the number of tasks the worker does and the control the worker has over the job

job rotation An alternative to job specialization that involves systematically moving employees from one job to another

job specialization The degree to which the overall task of the organization is broken down and divided into smaller component parts

learning organization One that works to facilitate the lifelong learning and personal development of all of its employees, while continually transforming itself to respond to changing demands and needs

location departmentalization Grouping jobs on the basis of defined geographic sites or areas

matrix design Based on two overlapping bases of departmentalization

mechanistic organization Similar to the bureaucratic model, most frequently found in stable environments

organic organization Very flexible and informal model of organization design, most often found in unstable and unpredictable environments

organization structure and design The set of elements that can be used to configure an organization

organizational life cycle Progression through which organizations evolve as they grow and mature

organizational size Total number of full-time or full-time-equivalent employees

pooled interdependence When units operate with little interactions, their output is simply pooled

product departmentalization Grouping activities around products or product groups

reciprocal interdependence When activities flow both ways between units

sequential interdependence When the output of one unit becomes the input of another in sequential fashion

situational view of organization design Based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors

span of management The number of people who report to a particular manager

team organization An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying functional hierarchy.

technology Conversion processes used to transform inputs into outputs

virtual organization One that has little or no formal structure

work team An alternative to job specialization that allows an entire group to design the work system it will use to perform an interrelated set of tasks


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