Chapter 9—Designing Adaptive Organizations

These flashcards cover key concepts related to designing adaptive organizations, including various types of departmentalization, authority structures, job design, and organizational processes.

Organizational Structure

The vertical and horizontal configuration of departments, authority, and jobs within a company.

Organizational Process

the collection of activities that transform inputs into outputs that customers value

Departmentalization

The process of subdividing work and workers into separate organizational units responsible for completing particular tasks.

Functional Departmentalization

Organizing work and workers into separate units responsible for particular business functions or areas of expertise. (best for small, simple companies that are starting out)

Product Departmentalization

Organizing work and workers into separate units responsible for producing particular products or services. (best for complex companies with different products)

Customer Departmentalization

Organizing work and workers into separate units responsible for particular kinds of customers. (best for complex companies with different types of clients)

Geographic Departmentalization

Organizing work and workers into separate units responsible for doing business in particular geographic areas. (best for big multinational companies)

Matrix Departmentalization

A hybrid organizational structure that uses two or more forms of departmentalization, most often product and functional, together.

Authority

The right to give commands, take action, and make decisions to achieve organizational objectives.

Chain of Command

The vertical line of authority that clarifies who reports to whom throughout the organization.

Unity of Command

a management principle that workers should report to just one boss

Line Authority

the right to command immediate subordinates in the chain of command

Staff Authority

the right to advise, but not command, others who are not subordinates in the chain of command

Line Function

an activity that contributes directly to creating or selling the company’s products

Staff Function

an activity that does not contribute directly to creating or selling the company’s products but instead supports line activities

Delegation of Authority

The assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.

Centralization of Authority

The location of most authority at the upper levels of the organization.

Decentralization

the location of a significant amount of authority in the lower levels of the organization

Standardization

solving problems by consistently applying the same rules, procedures, and processes

centralize, decentralize

______ when standardization is important and _____ when standardization is unimportant

Job Design

The number, kind, and variety of tasks that individual workers perform in doing their jobs.

Job Specialization

A job composed of a smaller part of a larger task or process.

Job Rotation

Periodically moving workers from one specialized job to another to provide more variety and the opportunity to use different skills.

Job Enlargement

Increasing the number of different tasks that a worker performs within one particular job.

Job Enrichment

Increasing the number of tasks in a job and granting workers the authority and control to make meaningful decisions.

Job Characteristics Model (JCM)

an approach to job redesign that seeks to formulate jobs in ways that motivate workers and create positive work outcomes

Internal Motivation

motivation that comes from the job itself rather than from outside rewards

Core Job Characteristics

Aspects of a job that motivate workers, including skill variety, task identity, task significance, autonomy, and feedback.

Skill Variety

the number of different activities performed in a job

Task identity

the degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work

Task Significance

the degree to which a job is perceived to have a substantial impact on others inside or outside the organization

Autonomy

the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job

Feedback

the amount of information the job provides to workers about their work performance

Mechanistic Organization

An organization characterized by specialized jobs, precisely defined roles, and a rigid chain of command based on centralized authority.

Reengineering

Fundamental rethinking and radical redesign of business processes to achieve improvements in performance measures.

Task Interdependence

The extent to which collective action is required to complete an entire piece of work.

Pooled interdependence

work completed by having each job or department independently contribute to the whole

Sequential interdependence

work completed in succession, with one group’s or job’s outputs becoming the inputs for the next group or job

Reciprocal Interdependence

work completed by different jobs or groups working together in a back-and-forth manner

Empowering Workers

permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions

Empowerment

feeling of intrinsic motivation in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination

Interorganizational Process

A collection of activities that take place among companies to transform inputs into outputs that customers value

Modular Organizations

Organizations that outsource noncore business activities to outside companies or specialists.

Network Organizations

Organizations that are part of a network where many companies share skills, costs, and resources to collectively solve customer problems or provide specific products or services