Organizational Design of Businesses Vocabulary

Front

The formally granted influence of an individual to make decisions, pursue goals, and obtain the resources necessary to support those decisions and goals.

Back

Authority

Front

The flow of authority within an organization; also known as line of command.

Back

Chain of command

Front

An exchange of information in which the words and gestures are understood in the same way by both the speaker and the listener.

Back

Communication

Front

Assigning tasks to subordinates.

Back

Delegation

Front

Dividing a large job into units, or job tasks, and assigning an individual to do each of the tasks.

Back

Division of labor

Front

An organizational design in which the business is broken down into units according to factors such as product, process, territory, customer type, etc.

Back

Divisional structure

Front

An organizational design in which the business is broken into traditional departments, each with its own set of responsibilities and activities (marketing, operations, sales, IT, etc.).

Back

Functional structure

Front

The process of creating new or more effective products, processes, services, technologies, or ideas.

Back

Innovation

Front

Becoming an expert in a specific work task.

Back

Job specialization

Front

The amount of teamwork included in an organizational design.

Back

Lateral relations