accountability: Liability of subordinates for accomplishing tasks assigned by managers.

authority: The power to make the decisions necessary to complete a task.

centralized organization: Top managers retain most decision- making rights for themselves.

chain of command: Reporting relationships within a business; the flow of decision-making power in a firm.

committee and team authority: Authority granted to committees or work teams involved in a firm's daily operations.

customer departmentalization: Departmentalization according to the types of customers likely to buy a given product.

decentralized organization: Lower- and middle-level managers are allowed to make significant decisions.

delegation: Assignment of a task, a responsibility, or authority by a manager to a subordinate.

departmentalization: The process of grouping jobs into logical units.

divisional structure: Divides the organization into divisions, each of which operates as a semi-autonomous unit.

flat organizational structure: An organization with relatively few layers of management.

functional departmentalization: Departmentalization according to functions or activities.

functional structure: Various units are included in a group based on functions that need to be performed for the organization to reach its goals.

geographic departmentalization: Departmentalization according to the area of the country or world supplied.

grapevine: An informal communications network that carries gossip and other information throughout an organization.

informal organization: A network of personal interactions and relationships among employees unrelated to the firm's formal authority structure.

international organizational structure: An organizational structure that is designed to help a company succeed in international markets. International departments, international divisions, or an integrated global organization are all variations of the international organizational structure.

intrapreneuring: The process of creating and maintaining the innovation and flexibility of a small-business environment within the confines of a large organization.

job specialization: The process of identifying the specific jobs that need to be done and designating the people who will perform them.

line authority: An organizational structure in which authority flows in a direct chain of command from the top of the company to the bottom.

line department: A department directly linked to the production and sales of a specific product.

matrix organization: A project structure in which the project manager and the regular line managers share authority until the project is concluded.

organization chart: A physical depiction of the company's structure showing employee titles and their relationship to one another.

organizational structure: The specification of the jobs to be done within a business and how those jobs relate to one another.

process departmentalization: Departmentalization according to the production process used to create a good or service.

product departmentalization: Departmentalization according to the products being created or sold.

profit centre: A separate company unit responsible for its own costs and profits.

project organization: An organization that uses teams of specialists to complete specific projects.

responsibility: The duty to perform an assigned task.

span of control: The number of people managed by one manager.

staff authority: Authority that is based on expertise and that usually involves advising line managers.

staff members: Advisers and counsellors who aid line departments in making decisions but do not have the authority to make final decisions.

tall organizational structure: An organization with many layers of management.

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