Organization design and effective unit

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Last updated 2:17 PM on 4/22/26
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25 Terms

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Organizational design and effectiveness

Structures of accountability and responsibility used to develop and implement strategies, and the hr practices and info and business processes that activate those structures

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span of control

refers to the number of people reporting directly to a given manager

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unity of command principle

a structure in which each worker reports to one boss, who in turn reports to one boss

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Line position

A position in the direct chain of command that is responsible for the achievement of an organization's goals

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Staff position

A position intended to provide expertise, advice, and support for line positions

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hierarchy of authority

An organization's chain of command, specifying the relative authority of each manager

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division of labor

Occurs when the common goals are pursued by individuals performing separate but related tasks

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centralized decision making

occurs when key decisions are made by top management

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decentralized decision making

occurs when important decisions are made by middle and lower level managers

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Solid-Line Reporting Relationship

Formal reporting relationship

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Dotted line reporting relationship

informal reporting relationship

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Functional, divisional, matrix, horizontal, hollow, modular, virtual

What are the different types of organizational structure?

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Functional Structure

people with similar occupational specialties are put together in formal groups

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Divisional Structure

employees are segregated into organization groups based on similar products or services, customers or clients, or geographic regions

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Matrix Structure

an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal

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horizontal structure

teams or workgroups, either temporary or permanent, are created to improve collaboration and work on common projects

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hollow structure

the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

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modular structure

the company assembles product parts, components, or modules provided by external contractors

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virtual structure

one whose members are geographically apart, usually working with e-mail and other forms of information technology, yet which generally appears to customers as a single, unified organization with a real physical location

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learning organization

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.

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mechanistic organization

rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication

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organic organization

authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks

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Goal accomplishment, internal processes, strategic constituencies, resource acquisition

Different types of organizational effectiveness criteria

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Product Innovation

a change in the appearance or the performance of a product or a service or the creation of a new one

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process innovation

a change in the way a product or service is conceived, manufactured, or disseminated