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Terms in this set (25)
organizational structure (OS)
defines how job tasks are formally divided, grouped, and coordinated
work specialization (OS)
division of labor, describes the degree to which activities in the organization are divided into separate jobs, "to what degree are activities subdivided into separate jobs"
departmentalization (OS)
the basis by which jobs in an organization are grouped together, grouped by functions, product or service, geography, "on what basis will jobs be grouped together?"
chain of command (OS)
unbroken line of authority that extends from the top of the organization to the lowest and clarifies who reports to whom; a person should only have one superior person that they report to; "to whom do individuals and groups report?"
span of control (OS)
describes the number of levels and managers an organization has; the wider or larger the span, the fewer levels, the more employees each level has, and the more efficient the organization in terms of cost;
a narrow span the manager can maintain close control, expensive because they add levels to management, vertical communication is more complex, encourage overly tight supervision and discourage employee autonomy
"how many individuals can a manager efficiently and effectively direct?"
centralization and decentralization (OS)
Centralized: degree to which decision making is concentrated at a single point in the organization; top managers make all the decisions, better at avoiding bad choices
Decentralized: decision making is pushed down to the managers closet to the action or to workgroups, can act more quickly to solve problems, more people provide input into decisions, employees are less likely to feel alienated, better for avoiding lost opportunities, necessary for companies with offshore sites because localized decision making is need to respond to each region's profit opportunities
formalization (OS)
degree to which jobs within the organization are standardized; highly formalized-the employee has a minimal amount of discretion over what to do and when and how to do it
eliminates the possibility of employees engaging in alternative behaviors, it also removes the need to consider them
low formalization-job behaviors are relatively unprogrammed and employees have a great deal of freedom at work
to what degree will there be rules and regulations to direct employees and managers
boundary spanning (OS)
when individuals form relationships outside their formally assigned groups and with other organizations
ex: HR executive who frequently engages with the IT group
Do individuals from different areas need to regularly interact
simple structure
an organizational structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization; fast, flexible, and inexpensive to operate, accountability is clear
bureaucracy
highly routine operating tasks achieved through specialization, strictly formalized rules and regulations, tasks grouped into units, centralized authority, narrow spans of control, decision making that follows chain of command
ability to perform standardized activities in a highly efficient manner
functional structure
groups employees by their similar specialties, roles, or tasks; focused on one product or service; creates rigid, formal communications
divisional strucuture
groups employees into units by product, service, customer, or geographical market area; highly departmentalized
helpful when units are in different countries with very different markets
matrix structure
combines the functional and product structures we find in advertising agencies, aerospace firms, R&D laboratories
virtual structure
small, core organization that outsources its major business functions
highly centralized , with little departmentalization
minimizes bureaucratic overhead because there is no lasting organization to maintain, lessens long term risks and their costs
outsources all the primary functions of the business
team structure
seeks to eliminate the chain of command and replace departments with empowered teams; removes vertical and horizontal boundaries in addition to breaking down external barriers between the company and its customers suppliers
People can work at uniform mobile work stations, and project teams, not functions or departments; cross functional teams
circular structure
organizational structure in which executives are at the center, spreading their vision outward in rings grouped by functions (managers, specialists, then workers)
downsizing
systematic effort to make an organization leaner by closing locations, reducing staff, or selling off business units that don't add value
doesn't always have to mean physically shrinking the office
why downsize: direct all their efforts toward their core competencies, reduce bureaucracy and speed decision making
problem: effect of employees attitudes, lead to more voluntary turnover, stress in the workplace
mechanistic model (organization design)
structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization
-high specialization
-rigid departmentalization
-clear chain
of command
-narrow spans of control
-centralization
-high formalization
organic model (organization design)
structure that is flat, uses cross-hierarchical and cross-functional teams, low formalization, possesses a comprehensive information network, relies on participative decision making
-cross functional teams
-cross hierarchical teams
-free flow of information
-wide spans of
control
-decentralization
-low formalization
innovation strategy (organization strategy)
strategy that emphasizes the introduction of major new products and services; use competitive pay and benefits to attract and motivate employees to take risks
organic organization structure
i.e. 3M, Apple
cost-minimization strategy (organization strategy)
strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting; pursue fewer policies meant to develop commitment among their workplace
mechanistic organization structure
i.e. Walmart
imitation strategy (organization strategy)
strategy that seeks to move into new products or new markets only after their viability has already been proven; minimize risk and maximize opportunity for profit, moving new products or entering new markets only after innovators have proven their viability
follow smaller and more innovative competitors with superior products, but only after competitors have demonstrated the market is there
mechanistic and organic organization structure
i.e. Hewlett-Packard, Caterpillar
technology
describes the way an organization transfers inputs into outputs
environment
includes outside institutions or forces that can affect its structure
three dimensions:
capacity- degree to which the environment can support growth
volatility-degree of instability in the environment
complexity- degree of heterogeneity and concentration among environmental elements
scarce, dynamic, and complex environments face the greatest degree of uncertainty because they have high unpredictability, little room for error, and diverse set of elements to monitor constantly
institutions
cultural factors that lead many organizations to have similar structures, especially those factors that might not lead to adaptive consequences; cultural factors that act as guidelines for appropriate behavior
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