Organizational Structures

A collection of flashcards focused on key terms and concepts related to organizational structures.

Organizational structure

How job tasks are formally divided, grouped, and coordinated.

Key elements of organizational structure

Work specialization, departmentalization, chain of command, span of control, centralization and decentralization, formalization.

Chain of command

The unbroken line of authority that extends from the top of the organization to the lowest echelon.

Authority

The rights inherent in a managerial position to give orders and expect those orders to be obeyed.

Unity of command

A subordinate should have only one superior to whom he or she is directly responsible.

Span of control

The number of subordinates a manager can efficiently and effectively direct.

Centralization

The degree to which decision making is concentrated at a single point in the organization.

Formalization

The degree to which jobs within the organization are standardized.

Bureaucracy

A structure with highly routine operating tasks, specialized tasks grouped into functional departments, centralized authority, and narrow spans of control.

Mechanistic model

A structure characterized by extensive departmentalization, high formalization, limited information network, and centralization.

Organic model

A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, and relies on participative decision making.

Determinants of organizational structure

Strategy, organization size, technology, and environment.

Innovation strategy

A strategy that emphasizes the introduction of major new products and services.

Cost-minimization strategy

A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation, and price cutting.

Routineness in technology

Characteristics of technologies that influence the degree of centralization and formalization in organizations.

Environmental capacity

The degree to which an environment can support growth.

Environment volatility

The degree of instability in the environment.

Participative decision making

Decision making that involves employees in the process, which is positively related to job satisfaction.