B. IO Organizational Structure and Systems

Organizational Structure

the arrangement and interrelationship of a component parts and positions in an organization

Complexity

degree to which activities within the organization are differentiated

Horizontal Differentiation

different positions in an organization have different education and training; (operations)

Vertical Differentiation

hierarchy of approving power (managers, directors, supervisor); applied in budget (^ budget = approving power needed)

Spatial Differentiation

based on geography

Formalization

extent to which jobs within an organization are specialized (ex. Positions that require licenses)

Centralization

degree to which decision making is concentrated at one point in the organization

Line

makes decisions and gives commands in order to reach company goals (ideally the leaders in position)

Staff

supportive to line's functions (the rest of the personnel)

Authority

power and decision

Responsibility

accountability

Span of Control

Number of direct reports a supervisor is responsible for

Product or Service

What the business offers to meet customer needs or solve a problem

Market (Customers)

The target audience or consumers who buy the product or service

Operations

The internal processes, systems, and resources that allow the business to function

Finance

How the business manages money, including revenue, costs, profit, and funding

Expert

power due to knowledge

Legitimate

power due to appointment

Referent

power due to similar goals

Coercive

power with punishment

Reward

power that provides incentives

Specialized Staff

Act as consultants

General Staff

Staff that stay within a certain department

Organization Staff

Service in different departments

Organic Structure

characterized by a low degree of departmentalization, wide spans of control, authority centralized on a single person, and little formalization

Horizontal Structure

structure in which many levels of middle management are eliminated

Hierarchical Structure

employees are grouped with every employee having one supervisor

Functional Structure

team structure that groups people into different departments based on areas of expertise (formalized)

Divisional Structure

system in which the business is divided into segments by product, market or geographies

Matrix Structure

there is dual / multiple managerial accountability and responsibility

Team

based Structure

Network Structure

structure that involves multiple divisions in different locations (has no physical office)

Corporate Strategy

strategies that guide an organization's overall direction and goals

Concentration Strategy

Focuses on a single product line or service

Diversification Strategy

Involves expanding into new markets or industries that are different from its existing core business

Vertical Integration Strategy

Focuses on taking control of its own supply chain

Consolidation Strategy

Act of merging or acquiring other companies to strengthen market position and achieve economies of scale

Geographic Expansion

Involves increasing a company's market presence by entering new geographical areas

Competitive Strategy

strategies that help a company attract customers and compete against competitors

Competitive Advantage

what sets a company apart from its competitors, attracting customers and improving market share

Cost Leadership

Focuses on becoming the lowest

Differentiation

Focuses on a unique product or service features to stand out from competitors

Focus

Focuses on targeting specific markets or niches

Functional Strategy

how departments and functional areas within a company execute their activities to support the overall business strategy