Understanding Organizational Design & Structure

Flashcards on Organizational Design and Structure

Organization

A social unit of people structured and managed to meet a need or pursue collective goals.

Organizational Structure

A system used to define a hierarchy within an organization, identifying each job, its function, and reporting lines.

Organization Design

The process by which managers develop or change an organization’s structure.

Mechanistic Organization

An organizational structure characterized by rigid hierarchical relationships, fixed duties, many rules, formalized communication channels, and centralized decision authority.

Organic Organization

An organizational structure characterized by collaboration, adaptable duties, few rules, informal communication, and decentralized decision authority.

SMART Goals

Goals that are Specific, Measurable, Attainable, Relevant, and Time-Based.

Simple Structure

An organizational structure with low departmentalization, wide spans of control, centralized authority, and little formalization.

Functional Structure

An organizational structure that groups similar or related tasks together into departments.

Divisional Structure

An organizational structure made up of separate business units or divisions, each with some autonomy.

Team Structure

An organizational structure in which the entire organization is made up of work groups or teams.

Matrix Structure

An organizational structure that assigns specialists from different functional areas to work on projects but who return to their areas when the project is completed.

Project Structure

An organizational structure in which employees continuously work on projects, moving to new projects as they are completed.

Boundaryless Organization

An organization that is not defined by or limited to artificial horizontal, vertical, or external boundaries.

Telecommuting

A work arrangement in which employees work at home and are linked to the workplace by computer.

Compressed Workweek

A work schedule where employees work their required hours in fewer days per week (e.g., four 10-hour days).

Flextime

A flexible scheduling system where employees are required to work a specific number of hours a week but can vary their start and end times within certain limits.

Job Sharing

A job scheduling arrangement where two or more people share one full-time job.

Contingent Workers

Temporary, freelance, or contract workers whose employment is dependent upon demand for their services.

Centralization

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

Decentralization

The degree to which decision-making is spread throughout the organization.

Formalization

The degree to which jobs within the organization are standardized.

Chain of Command

The line of authority that extends from the top of the organization to the lowest ranks, clarifying who reports to whom.

Span of Control

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

Authority

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

Responsibility

The obligation to perform any assigned duties.

Unity of Command

The principle that a subordinate should have one and only one superior to whom he or she is directly responsible.

Virtual Organization

A small, core organization that outsources major business functions.

Learning Organization

An organization that has developed the capacity to continuously learn, adapt, and change.