BUSI 1800 Lecture Notes - Lecture 9: Morale, Total Quality Management, Organizational Structure
29 Jul 2015
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Document Summary
Economies of scale- the situation in which companies can reduce their production costs if they can purchase raw materials in bulk and develop specialized labour; resulting in the average cost of goods going down as production levels increase. Hierarchy- a system in which one person is at the top of the organisation and there is a ranked or sequential ordering from the top down of managers who are responsible to that person. Chain of command- the line of authority that moves from the top of a hierarchy to the lowest level. Bureaucracy- an organization with many layers of managers who set rules and regulations and oversee all decisions. Centralized authority- an organization structure in which decision making authority is maintained at the top level of management at the company"s headquarters. Decentralized authority- an organization structure in which decision making authority is delegated to lower level managers more familiar with local conditions than headquarters management could be.
