Organizational Design of Businesses Flashcard

Front

What is the primary purpose of organizational design in a business?

Back

To structure a business’s people, information, and technology

Front

Why is organizational design important for businesses?

Back

It creates clear lines of authority

Front

What happens when an organization lacks a clear, well-planned design?

Back

Confusion and loss of productivity

Front

How does a clear organizational design improve communication within a business?

Back

It allows employees to know exactly who their direct supervisor is.

Front

What is one benefit of employees enjoying an excellent flow of communication?

Back

Encouragement of innovation.

Front

Why is it important for a business to know its objectives before choosing an organizational design?

Back

To align the design with the business's mission and objectives.

Front

What is a potential outcome of increased innovation and productivity in a business?

Back

Better ability to compete.

Front

What is the formally granted ability of an individual to make decisions and pursue goals called?

Back

Authority

Front

Which type of authority refers to the formal, direct authority that affects a business's day-to-day operations?

Back

Line authority

Front

What is the process of assigning tasks to subordinates known as?

Back

Delegation