Exam 16: Foundations of Organization Structure

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means decision making occurs throughout the organizational hierarchy.

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Departmentalization by may result in significant cost savings and better coverage, but it may isolate work groups from activities in an organization's home office.

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Delegation is the transfer of to make decisions and use organizational resources.

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A complete shows all the people, positions, reporting relationships, and lines of formal communication in the organization.

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is the power that has been legitimized within a specific social context.

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In a departmentalization, employees who do similar work can learn from each other by sharing ideas, opportunities, and problems they encounter on the job.

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A decentralized organization concentrates decision making at the top of its hierarchy.

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Span of control is the number of people reporting to a manager.

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of refers to the way the organization's work is separated into different jobs to be done by different people.

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The premise of organized effort is that

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is the extent to which work in an organization is separated into various tasks and assigned to various people.

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Dividing an organization's manufacturing jobs into drill press, milling, heat treat, and assembly areas is an example of departmentalization.

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When a manager has a small span of control; he or she can maintain close control over workers and stay in contact with daily operations.

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The administrative hierarchy is the system of reporting relationships in the organization.

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It is only when is part of an official organizational role that it becomes authority.

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Requirements for the structure of an organization include which of the following?

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Departmentalization according to is similar to functional departmentalization, except that the focus is much more on specific jobs grouped according to activity.

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The main advantage of division of labor is that it promotes

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The statement of "what business we are in" defines the company's and gives the organization a reason to exist.

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Departmentalization according to enhances interaction and communication among employees working on the same product or service.

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