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MGMT 3000 Exam 2 ELaborations
1. Integration: The concept of coordination which are procedures that link the parts of the
organization to achieve the organizations overall mission
2. Differentiation: The organization distinguishes and separates jobs and jobhold- ers from one
another through the division of labor and job specialization
3. Specialization: Different people or groups perform those smaller parts of the
organization's overall work
4. The Vertical Structure: Authority is the legitimate right to make decisions and to tell other
people what to do (BOD, Chief Exec, Top Management)
Hierarchy: The authority levels of the organizational pyramid
5. Corporate Governance: Role of a corporation's executive staff and board of directors in
ensuring that the firm's activities meet the goals of the firm's stakeholders
6. Span of Control: Number of subordinates who report directly to a supervisor
- Narrow span: tall organization with many reporting levels
- Wide span: flat organization with fewer reporting levels
7. Delegation: Assignment of new or additional responsibilities to a subordinate
8. Responsibility: Assignment of a task that an employee is supposed to carry out
9. Authority: Authority grants a person the right to make decisions and give orders
10.Accountability: Expectation that employees will perform a job, take corrective action when
necessary, and report upward on the status and quality of their perfor- mance
11.Advantages of Delegation: Leverages managers' energy and talent
Helps train and develop effective subordinates
Promotes a sense of being a contributing member of the organizations
12.High-Involvement Organization: top management ensures that there is a con- sensus about
the direction in which the business is heading
13.Participative management: Involving employees in decision making
Task forces, study groups, and other techniques are used to foster participation in decisions
14.Horizontal Structure: Line Departments: Units that deal directly with the orga- nization's
primary goods and services
Staff Departments: Units that support line departments
15.The Functional Organization: Structured around specialized activities such as production,
marketing, and human resources
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MGMT 3000 Exam 2 ELaborations
16.Pros of Functional Departmentalization: - Economies of scale can be realized
- Performance standards are better maintained
- Technical specialists are relatively free of administrative work
- Environmental monitoring is more effective
17.Divisional Structure: A form of departmentalization that groups units around products,
customers, or geographic regions
18.Matrix Organization Structure: Composed of dual reporting relationships in which some
employees report to two superiors
Pros: more information shared across functions. communication is fostered. greater
responsiveness.
Cons: Unclear responsibilities and competing priorities, violation of the unity-of-com- mand
principle, accountability difficult to define
need to collaborate effectively is particularly high in the matrix
19.Standardization: Establishing common routines and procedures that apply uni- formly to
everyone
20.Formalization: The presence of rules and regulations governing how people in the
organization interact
21.Coordination by Plan: Interdependent units are required to meet deadlines and objectives
that contribute to a common goal
22.Coordination by Mutual Adjustment: Units interact with one another to make
accommodations to achieve flexible coordination
23.Two ways to manage high information-processing demands: 1. Reduce the need for
information: Creating slack resources and creating self-contained tasks
2. Process more information
24.Mechanistic Organization: A form of organization that seeks to maximize internal
efficiency. Formal, rigid structure
25.Organic Structure: An organizational form that emphasizes flexibility
26.Core Capability: The knowledge, expertise, or skill that underlies a company's ability to be a
leader in providing a range of goods or services
27.Ordinary Capabilities: Basic administrative and operational functions needed. Doing basic
things right
28.Dynamic Capabilities: "higher-level" strategic capabilities that aid rapid adap- tion. Doing
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MGMT 3000 Exam 2 ELaborations
1. Integration: The concept of coordination which are procedures that link the parts of the
organization to achieve the organizations overall mission
2. Differentiation: The organization distinguishes and separates jobs and jobhold- ers from one
another through the division of labor and job specialization
3. Specialization: Different people or groups perform those smaller parts of the
organization's overall work
4. The Vertical Structure: Authority is the legitimate right to make decisions and to tell other
people what to do (BOD, Chief Exec, Top Management)
Hierarchy: The authority levels of the organizational pyramid
5. Corporate Governance: Role of a corporation's executive staff and board of directors in
ensuring that the firm's activities meet the goals of the firm's stakeholders
6. Span of Control: Number of subordinates who report directly to a supervisor
- Narrow span: tall organization with many reporting levels
- Wide span: flat organization with fewer reporting levels
7. Delegation: Assignment of new or additional responsibilities to a subordinate
8. Responsibility: Assignment of a task that an employee is supposed to carry out
9. Authority: Authority grants a person the right to make decisions and give orders
10.Accountability: Expectation that employees will perform a job, take corrective action when
necessary, and report upward on the status and quality of their perfor- mance
11.Advantages of Delegation: Leverages managers' energy and talent
Helps train and develop effective subordinates
Promotes a sense of being a contributing member of the organizations
12.High-Involvement Organization: top management ensures that there is a con- sensus about
the direction in which the business is heading
13.Participative management: Involving employees in decision making
Task forces, study groups, and other techniques are used to foster participation in decisions
14.Horizontal Structure: Line Departments: Units that deal directly with the orga- nization's
primary goods and services
Staff Departments: Units that support line departments
15.The Functional Organization: Structured around specialized activities such as production,
marketing, and human resources
1/
15
,\
MGMT 3000 Exam 2 ELaborations
16.Pros of Functional Departmentalization: - Economies of scale can be realized
- Performance standards are better maintained
- Technical specialists are relatively free of administrative work
- Environmental monitoring is more effective
17.Divisional Structure: A form of departmentalization that groups units around products,
customers, or geographic regions
18.Matrix Organization Structure: Composed of dual reporting relationships in which some
employees report to two superiors
Pros: more information shared across functions. communication is fostered. greater
responsiveness.
Cons: Unclear responsibilities and competing priorities, violation of the unity-of-com- mand
principle, accountability difficult to define
need to collaborate effectively is particularly high in the matrix
19.Standardization: Establishing common routines and procedures that apply uni- formly to
everyone
20.Formalization: The presence of rules and regulations governing how people in the
organization interact
21.Coordination by Plan: Interdependent units are required to meet deadlines and objectives
that contribute to a common goal
22.Coordination by Mutual Adjustment: Units interact with one another to make
accommodations to achieve flexible coordination
23.Two ways to manage high information-processing demands: 1. Reduce the need for
information: Creating slack resources and creating self-contained tasks
2. Process more information
24.Mechanistic Organization: A form of organization that seeks to maximize internal
efficiency. Formal, rigid structure
25.Organic Structure: An organizational form that emphasizes flexibility
26.Core Capability: The knowledge, expertise, or skill that underlies a company's ability to be a
leader in providing a range of goods or services
27.Ordinary Capabilities: Basic administrative and operational functions needed. Doing basic
things right
28.Dynamic Capabilities: "higher-level" strategic capabilities that aid rapid adap- tion. Doing
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