The Dynamics of Alternative Organizational Forms

These flashcards cover organizational structure, types of departmentalization, authority principles, and Mintzberg's structural configurations based on Chapter 4 notes.

Organizing

The deployment of organizational resources to achieve strategic goals, reflected in the division of labour, formal lines of authority, and coordination mechanisms.

Organization Structure

The set of formal tasks assigned to individuals and departments, formal reporting relationships (including lines of authority and span of control), and the design of systems to ensure effective coordination.

Organization Chart

The visual representation of an organization structure that delineates the chain of command and indicates departmental tasks.

Work Specialization

Also called division of labour; the degree to which organizational tasks are subdivided into separate jobs.

Chain of Command

An unbroken line of authority that links all employees in an organization and shows who reports to whom.

Unity of Command

A principle stating that each employee is held accountable to only one supervisor.

Scalar Principle

A clearly defined line of authority in the organization that includes all employees from the top to the bottom.

Authority

The formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

Acceptance Theory of Authority

The argument that a manager has authority only if subordinates choose to accept their commands.

Responsibility

The duty to perform the task or activity as assigned.

Accountability

The mechanism through which authority and responsibility are brought into alignment, requiring those with authority to justify task outcomes to those above them.

Delegation

The process managers use to transfer authority and responsibility to positions below them in the hierarchy.

Line Departments

Departments that perform tasks reflecting the organization's primary goal and mission.

Staff Departments

Departments that provide specialized skills in support of line departments, such as marketing, accounting, and human resources.

Line Authority

The formal authority of management positions to direct and control immediate subordinates.

Staff Authority

A communication relationship that includes the right to advise, recommend, and counsel in specific areas of expertise.

Span of Management

The number of employees reporting to a supervisor, also known as the span of control.

Tall Structure

An organizational structure characterized by an overall narrow span of management and more hierarchical levels.

Flat Structure

An organizational structure characterized by a wide span of management, horizontal dispersion, and fewer hierarchical levels.

Centralization

A state where decision-making authority is located near the top of the organization.

Decentralization

A state where decision-making authority is pushed downwards to lower organizational levels.

Departmentalization

The basis for grouping positions into departments and for grouping departments into the total organization.

Functional Structure

Also called a U-form (unitary structure); groups positions into departments based on similar skills, expertise, work activities, and resource use.

Divisional Structure

Also called an M-form (multidivisional) or decentralized form; occurs when departments are grouped together based on similar organizational outputs such as products or services.

Matrix Approach

A structure that combines aspects of functional and divisional structures simultaneously and utilizes dual lines of authority.

Cross-functional Team

A group consisting of employees from various functional departments who are responsible for meeting as a team to resolve mutual problems.

Permanent Team

A group of employees from all functional areas organized like a formal department to focus on a specific task or project.

Virtual Network Structure

A structural design where the firm subcontracts most of its major functions to separate companies and coordinates them from a small headquarters hub.

Modular Approach

A networking approach where a manufacturing company uses outside suppliers to provide entire chunks of a product which are then assembled by a few workers.

Coordination

The managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

Collaboration

A joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose.

Re-engineering

The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Task Force

A temporary team or committee designed to solve a problem involving several departments.

Project Manager

A person responsible for coordinating the activities of several departments for the completion of a specific project, located outside the functional departments.

Mechanistic System

A rigid, vertical, centralized structure characterized by rules, procedures, and a clear hierarchy; suitable for stable environments.

Organic System

A loose, free-flowing, and adaptive structure where decision-making is decentralized; suitable for rapidly changing environments.

Small-batch Production

A manufacturing technology where firms produce goods in batches of one or a few products designed to customer specification.

Large-batch (Mass) Production

A manufacturing technology distinguished by standardized production runs and large volumes of products sold to all customers.

Continuous Process Production

A sophisticated form of manufacturing technology where the entire workflow is mechanized and operates without starting and stopping.

Technical Complexity

The degree to which machinery is involved in production to the exclusion of people.

Service Technology

Characterized by intangible outputs and direct contact between employees and customers, with simultaneous production and consumption.

Offshore Outsourcing

The practice of hiring an external organization to perform a business function in a country other than the one where products are developed or manufactured.

Differentiation

Dividing organizational practices into distinct tasks performed by smaller units.

Integration

Coordinating distinct tasks of smaller units to accomplish coherent organizational practices.

Simple Structure

A structure that relies on direct supervision with power centralized in the strategic apex; fits simple, dynamic environments.

Machine Bureaucracy

A structure that coordinates through standardization of work processes and is dominated by the technostructure; fits simple, stable environments.

Professional Bureaucracy

A structure that coordinates through standardization of skills with authority decentralized to the operating core; fits complex, stable environments.

Divisionalized Form

A market-based structure where headquarters coordinates semi-autonomous divisions by standardizing outputs.

Adhocracy

An organic, team-based structure that relies on mutual adjustment to support innovation in complex, dynamic environments.