Entrepreneurship II: Objective 1.04 Vocabulary Quiz

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

• Divisional Structure

• Flat Organizational Structure

• Functional Structure

• Geographical Divisional Structure

Has an organizational structure with few or no levels of middle management between staff and executives. (also known as horizontal organization)

• Functional Structure

• Divisional Structure

• Flat Organizational Structure

• Line Organizational Chart

An organizational design in which the firm is broken into traditional departments, each with its own set of responsibilities and activities.

• Divisional Structure

• Tall Organizational Structure

• Processed Based Structure

• Functional Structure

An organizational structure that establishes its divisions based on geography.

• Geographical Divisional Structure

• Divisional Structure

• Matrix Structure

• Network Structure

The process of planning, staffing, leading, and organizing the employees of the business.

• Line Authority

• Human Resources Management

• Positional Authority

• Staff Authority

People who work to produce goods and services.

• Staff Authority

• Human Resources

• Line Position

• Staff Position

Line authority flows down the chain of command. For example, line authority gives a production supervisor the right to direct an employee to operate a particular machine, and it gives the vice president of finance the right to request a certain report from a department head.

• Line Authority

• Line Position

• Staff Position

• Staff Authority

Top management has complete control, and the chain of command is clear and simple. Examples of this structure are small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear "lines" of distinction between him and his subordinates.

• Functional Structure

• Line Organizational Structure

• Network Structure

• Line-and-Staff Organization

A position in the direct chain of command that is responsible for the achievement of an organization’s goals.

• Staff Position

• Line Position

• Positional Authority

• Staff Authority

Combines the line organization with staff departments that support and advise line departments. Most medium and large-sized firms exhibit line-and-staff organizational structures.

• Divisional Structure

• Line-and-Staff Organization

• Line Organizational Structure

• Line Position