Chapter 7

• Explain the difference between mechanistic and organic organizations and the environments in which they are more effective.
• Discuss the difference between formal and informal authority and centralized and decentralized authority.
• List and briefly explain the four levels of authority.
• Explain what an organization chart is and list the four aspects of a firm that it shows.
• Discuss the difference between internal and external departmentalization.
• Explain the difference between job simplification and job expansion.
• Explain how to set priorities by answering three priority questions and determining whether activities have high, medium, or low priority.
• List the four steps in the delegation process.