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Chapter 8: Terms

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organizational structureFramework enabling managers to divide responsibilities, ensure employee accountability, and distribute decision-making authority
organization chartDiagram showing how employees and tasks are grouped and where the lines of communication and authority flow
formal organizationA framework officially established by managers for accomplishing tasks that leave to achieving the organization's goals
informal organizationNetwork of informal employee interactions that are not defined by the formal structure
work specializationSpecialization in or responsibility for some portion of an organization's overall work tasks; also called division of labor
chain of commandPathway for the flow of authority from one management level to the next
responsibilityObligation to perform the duties and achieve the goals and objectives associated with a particular position
accountabilityObligation to report results to supervisors or team members and to justify outcomes that fall below expectations
authorityPower granted by the organization to make decisions, take actions, and allocate resources to accomplish goals
line organizationChain-of-command system that establishes a clear line of authority flowing from the top down
delegationAssignment of work and the authority and responsibility required to complete it
line-and-staff organizationOrganization system that has a clear chain of command but that also includes functional groups of people who provide advise and specialized services
span of managementNumber of people under one manager's control; also known as span of control
flat orgainzationsOrganizations with a wide span of management and few hierarchial levels
tall organizationsOrganizations with a narrow span of management and many hierarchial levels
centralizationConcentration of decision-making authority at the top of the organization
decentralizationDelegation of decision-making authority to employees in lower-level positions
vertical organizationStructure linking activities at the top of the organization with those at the middle and lower levels
departmentalizationGrouping people within an organization according to function, division, matrix, or network
departmentalization by functionGrouping workers according to their similar skills, resource use, and expertise
departmentalization by divisionGrouping departments according to similarities in product, process, customer, or geography
product divisionDivisional structure based on products
process divisionsDivisional structure based on the major steps of a production process
customer divisionsDivsional structure that focuses on customers or clients
geographic divisionsDivisional structure based on location of operations
departmentalization by matrixAssigning employees to both a functional group and a project team (thus using functional and divisional patterns simutaneously)
departmentalization by networkElectronically connecting seperate companies that perform selected tasks for a small headquarters organization
teamA unit of two or more people who share a mission and collective responsibility as they work together to achieve a goal
problem-solving teamInformal team of 5 to 12 employees from the same department who meet voluntarily to find ways of improving quality, efficiency, and the work environment
self-managed teamsTeams in which members are responsible for an entire process or operation
functional teamsTeams whose members come from a single functional department and that are based on the organzation's vertical structure
cross-functional teamsTeams that draw together employees from different functional areas
task forceTeam of people from several departments who are temporarily brought together to address a specific issue
special-purpose teamsTemporary teams that exist outside the formal organization hierarchy and are created to achieve a specific goal
committeeTeam that may become a permanent part of the organization and is designed to deal with regularly recurring tasks
virtual teamsTeam that uses communication technology to bring geographically distant employees together to achieve goals
free ridersTeam members who do not contribute sufficiently to the groups's activities because members are not being held individually accountable for their work
cohesivenssA measure of how committed the team members are to their team's goals
normsInformal standards of conduct that guide team behavior



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