Psych 161UciTURNING PRINCIPLES INTO ORGANIZATIONAL DESIGN●Managers in the late 1900s began designing organizations so that managers couldcontrolworkers.●Hierarchy– a system in which one person is at the top of the organization and there is aranked or sequential ordering from the top down of managers who are responsible to thatperson.oSince one person can’t keep track of thousands of workers, the top manager needsmany lower-level managers to help:oChain of command– the line of authority that moves from the top of a hierarchyto a lower leve.oOrganizational chart– a visual device that shows relationships among peopleand divides the organization’s work; it shows who report to whom.●Some organizations have a dozen or more layers of management between the CEO andthe lowest-level employees.oIf employees want to introduce work changes, they ask a supervisor, who asks hismanager, and another, and on.
The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production increases.
A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person
The line of authority that moves from the top of a hierarchy to the lowest level
An organization with many layers of managers who set rules and regulations and oversee all decisions.
An organization structure in which decision-making authority is maintained at the top level of management.
An organization structure in which decision-making authority is delegated to lower-level managers more familiar with the local conditions than headquarters management could be.
The optimal number of subordinates a managers supervises or should supervise
Tall Organization Structure
An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management.
Flat Organization Structure
An organization structure that has few layers of management and a broad span of control.
The dividing of organizational functions into separate units.
An organization that has direct two-way lines of authority, responsibility, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.
Employees who are part of the chain of command that is responsible for achieving organizational goals.
Employees who advise and assist line personnel in meeting their goals
An organization in which 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.
Cross-Functional Self-Managed Teams
Groups of employees from different departments who work together on a long-term basis
Using communications technology and other means to link organizations and allow them to work together on common objectives.
The present moment or the actual time in which something takes place
A temporary networked organization made up of replaceable firms that join and leave as needed.
Comparing an organization's practices, processes, and products against the world's best.
Those functions that the organization can do as well as or better than any other organization in the world.
Young people who have grown up using the Internet and social networking.
Redesigning an organization so that it can more effectively and efficiently serve its customers.
An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart.
Organizational (or corporate) Culture
Widely shared values within an organization that provide unity and cooperation to achieve common goals
The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts.
The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization.