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1.05 Vocabulary

AB
Authorityformally granted influence of an individual to make decisions, pursue goals, and obtain the resources necessary to support those decisions and goals
Chain of commandflow of authority within an organization; also called line of command
Communicationexchange of information in which the words and gestures are understood in the same way by both the speaker and the listener
DelegationAssigning tasks to subordinates
Division of laborDividing a large job into units, or job tasks, and assigning an individual to do each of the tasks
Divisional structureorganizational design in which the firm is broken down into units according to factors such as product, process, territory, customer type, etc.
Functional structure:organizational design in which the firm is broken into traditional departments, each with its own set of responsibilities and activities
Innovationcreation or discovery of something new, such as a new product, strategy, or proces
Job specializationBecoming an expert in a specific work task
Lateral relationsThe amount of teamwork included in an organizational design
Line authority:Formal, direct authority that affects a business’s day-to-day operations
Line of command:flow of authority within an organization
Matrix structureorganizational design that combines the traditional functional structure with the divisional structure
ObjectivesGoals to be reached
Organizational chartgraphical representation of the flow of authority within an organization
Organizational designrocess of structuring a business’s people, information, and technology to enable the business to achieve its goals and to be successful
Organizational structureprocess of structuring a business’s people, information, and technology to enable the business to achieve its goals and to be successfu
Product managerProduct manager: An individual who monitors one or more existing products and develops new products
Productivityamount of work employees perform in a given period, usually their output per hour
Responsibilityduty to get a job done
Scalar principleCreating authority that flows in a clear, continuous line
Span of controlmeasurement of how many workers are supervised by one manager
Staff authorityAdvisory authority, often without the ability to enforce or take action
Unity of commandprinciple that states that no employee should answer to more than one supervisor at a time


Ardrey Kell High School
Charlotte, NC

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