Test bank For Principles of Management
Organizational Structure
Organizational Chart - ANSReporting structure and division of labor in an organization
vertical structure - ANSDeal with issues of authority, reporting relationships and responsibility
horizontal structure - ANSDeal with actual structure of an organization and departmentalization
Differentiation - ANSThe idea that an organization is composed of various units that work on
varying tasks. Divides work into different groups and units (HR, Finance, Etc)
Integration - ANSThe extent that different work units work together
Delegation - ANSAssignment of new or additional responsibilities to a subordinate
Authority - ANSthe legitimate right to make decisions and to tell other people what to do
Hierarchy - ANSDifferent authority levels in an organization
centralized organization - ANSAn organization in which high-level executives make most
decisions and pass them down to lower levels for implementation
decentralized organization - ANSAn organization in which lower-level managers make important
decisions
functional organizational structure - ANSDepartmentalization around specialized activities such
as production, marketing, and human resources.
divisional organization - ANSDepartmentalization that groups units around products, customers,
or geographic regions.
matrix organizational structure - ANSAn organizational structure in which employees are
assigned to both functional and project managers
Network Organizational Structure - ANSCenters on a network of usually independent entities
that collaborate on a contracted project of product basis rather than in a traditional organization
strategic alliance (strategic partnership) - ANSAn agreement between two or more companies
that involves the joint production and distribution of goods and services.
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