Chapter 8 - Chapter8 19:47

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8 19:47 Economics of scale : The situation in which companies can reduce their  production costs if they can purchase raw materials in bulk; the average cost of  goods goes down as production levels increase Hierarchy : A system in which one person is at the top of the organization 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 Decentralized authority : An organization structure in which decision-making  authority is delegated to lower-level managers more familiar with local conditions 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/01/2011 for the course BMGT 110 taught by Professor Nelson during the Spring '08 term at Maryland.

Page1 / 3

Chapter 8 - Chapter8 19:47

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online