| A | B |
| Organizational Structure | The sum of the ways an organization divides its labor into distinct tasks and then coordinates them. |
| Organizational Design | The process of assessing the organization's strategy and environmental demands and then determining the appropriate organizational structures. |
| Organizational Charts | Illustrate relationships among units and lines of authority among supervisors and subordinates. |
| Differentiation | The extent to which tasks are divided into subtasks and performed by individuals with specialized skills. |
| Task Differentiation | Differentiation by what employees do. |
| Cognitive Differentiation | The extent to which people in different units within an organization think about different things or about similar things differently. |
| Integration | The extent to which various parts of an organization cooperate and interact with each other. |
| Interdependence | The degree to which one unit or person depends on another to accomplish a task. |
| Uncertainty | The extent to which future input, throughput, and output factors cannot be forecast accurately. |
| Formalization | The official and defined structures and systems in decision making, communication, and control in an organization. |
| Line of Authority | Specifies who reports to whom. |
| Unity of Command | The notion that an employee should have one and only one boss. |
| Span of Control | The number of employees reporting to a given supervisor. |
| Tall Organization Structure | One that has multiple layers or is high in terms of vertical differentiation. |
| Flat Organization Structure | Has fewer layers in its hierarchy than a tall organization. |
| Informal Organization | The unofficial but influential means of communication, decision making, and control that are part of the habitual way things get done in an organization. |
| Centralized Organizations | Resident decision making to fewer individuals, usually at the top of the organization. |
| Decentralized Organizations | Tend to push decision-making authority down to the lowest level possible. |
| Profit Center | Unit or product line in which related expenses are deducted from the revenue generated. |
| Network Structures | Formal or informal relationships among units or organizations (e.g., along the firm's value chain) |
| Outsourcing | The practice of taking a significant activity within the organization and contracting it out to an independent party. |
| Boundaryless Organization | Barriers to effective integration are overcome by people empowered to work across boundaries. |
| Liaisons | Individuals designated to act as a bridge or connection between different areas of a company. |
| Globalization | The tendency to integrate activities on coordinated, worldwide basis |
| Localization | The tendency to differentiate activities country by country. |