Chapter 15 - Foundations of organization structure

Formalization

Formalization

________: degree to which jobs within an organization are standardized.

Departmentalization

________: basis by which jobs in an organization are grouped together.

Centralization

________: degree to which decision making is concentrated at a single point in an organization.

Technology

________: way in which an organization transfers its inputs into outputs.

Boundary

________- less organization: organization that seeks to eliminate the chain of command, have limitless spans of control and replace departments with empowered teams.

Environment

________: institutions or forces outside an organization that potentially affect the organizations performance.

Unity of command

________: idea that a subordinate should have only one superior to whom he /she is directly responsible.

Organizational structure

________: way in which job tasks are formally divided, grouped and coordinated.

Organic model

________: structure that is flat, uses cross- hierarchical and cross- functional teams, has low formalization, possesses a comprehensive information network and relies on participative decision making.

Mechanistic model

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

Bureaucracy

________: organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control and decision making that follows the chain of command.

Span of control

________: number of subordinates a manager can efficiently and effectively direct.

Chain of command

________: unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.

Organizational structure

Way in which job tasks are formally divided, grouped and coordinated

Work specialization

Degree to which tasks in an organization are subdivided into separate jobs

Departmentalization

Basis by which jobs in an organization are grouped together

Chain of command

Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

Authority

Rights inherent in a managerial position to give orders and to expect the orders to be obeyed

Unity of command

Idea that a subordinate should have only one superior to whom he/she is directly responsible

Span of control

Number of subordinates a manager can efficiently and effectively direct

Centralization

Degree to which decision making is concentrated at a single point in an organization

Formalization

Degree to which jobs within an organization are standardized

Simple structure

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

Bureaucracy

Organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control and decision making that follows the chain of command

Matrix structure

Structure that creates dual lines of authority and combines functional and product departmentalization

Virtual organization

Small, core organization that outsources major business functions

Boundary-less organization

Organization that seeks to eliminate the chain of command, have limitless spans of control and replace departments with empowered teams

Mechanistic model

Structure characterized by extensive departmentalization, high formalization, limited information network and centralization

Organic model

Structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network and relies on participative decision making

Innovation strategy

Strategy that emphasizes the introduction of major new products and services

Cost-minimization strategy

Strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting

Imitation strategy

Strategy that seeks to move into new products or new markets only after their viability has already been proven

Technology

Way in which an organization transfers its inputs into outputs

Environment

Institutions or forces outside an organization that potentially affect the organization's performance