Chapter 8 Important Vocab

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22 Jun 2011
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Chapter 8 Vocab
Organizational Structure: The specification of the jobs to be done within a business and
how those jobs relate to one another
Chain of Command: Reporting relationships within a business; the flow of decision-
making power in a firm
Organization Charts: A physical depiction of the company’s structure showing employee
titles and their relationship to one another
Job Specialization: The process of identifying the specific jobs that need to be done and
designating the people who will perform them
Departmentalization: The process of grouping jobs into logical units
Responsibility: The duty to perform an assigned task
Centralized Organizations: Top managers retain most decision- making rights for
themselves
Decentralized Organizations: Lower and middle level managers are allowed to make
significant decisions
Flat Organizational Structure: An organization with relatively few layers of
management
Tall Organizational Structure: An organization with many layers of management
Span of Control: The number of people managed by one manager
Downsizing: The planned reduction in the scope of an organizations activity
Functional Structure: Various units are included in a group based on functions that need
to be performed for the organization to reach its goal
Informal Organization: A network f personal interactions and relationships among
employees unrelated to the firms formal authority structure
Grapevine: An informal communications network that carries gossip and other
information throughout an organization
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