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| Companies can reduce their production costs if they can purchase raw material in bulk; the average cost of goods goes down as production levels increase. |
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| A system in which one person is at the top of the organization and there is ranked or sequential ordering from the top of managers and others who are responsible to that person. |
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| The line of authority that moves from the top of the hierarchy to the lowest level. |
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| An organization with many layers of managers who set rules and regulations and oversee all decisions. |
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| When decision making authority is maintained at the top level of management at the company's headquarters. |
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| When decision making authority is delegated to lower level managers and employees who are more familiar with local conditions than headquarter's management could be. |
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| The optimum number of subordinates a manager supervises or should supervise. |
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| Tall organization structure |
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Definition
| A structure in which the pyramidal organization chart would be quite tall because of te various levels of management. |
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| Flat organization structure |
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| A structure that has few layers of management and a broad span of control (Many people reporting to each manager). |
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| The dividing of organizational functions (design, marketing, etc.) into separate units. |
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| An organization that has direct 2-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor. |
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| Part of the chain of command that is responsible for achieving organizational goals. |
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| Personnel that advise and assist line personnel in meeting their goals (e.g., marketing research, legal advising, information technology, and human research management.) |
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| An organization where specialists from different parts of the organization are brought together to work on specific projects, but still remain part of a line and staff structure. |
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| Cross functional self managed teams |
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Definition
| Groups of employees from different departments who work together on a long term basis (as opposed to the temporary teams established in matrix style organizations.) |
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Term
| Cross functional self managed teams |
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Definition
| Groups of employees from different departments who work together on a long term basis (as opposed to the temporary teams established in matrix style organizations.) |
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| Using communications technology and other means oto link organizations and allow them to work together on common objectives. |
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| The present moment or the actual time in which something takes place. |
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| When a company is so open to other companies working with it that the once solid barriers between them become seethrough and electronic information is shared as if the companies were one. |
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| A temorary networked organization, made up of replaceable firms that join and leave as needed. |
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| Comparing an organizations practices, processes, and products against the worlds best. |
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| Assigning various functions, such as accounting, production, security, mmaintenance, and legal work, to outside organizations. |
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| Functions that the organization can do as well as or better than any other organization in the world. |
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| Redesigning an organization so that it can more effectively and efficiently serve it's customers. |
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| An organization that has contact people at the top and the chief executive officer at the bottom. |
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| The fundamental rethinking and radical redesign of organizational processes to achieve dramatic improvements in critical measures of performance. |
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| Organizational (or corporate) culture |
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Definition
| Defined as widely shared values within an organization that provide unity and cooperation to achieve common goals. |
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Definition
| An organization that details lines of responsibility, authority, and position. |
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| An organization of relationships that deelop spontaneously as employees meet and form power centers. |
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