SHRM-Organizational Effectiveness & Development

Geographic structure

Organizational structure in which geographic regions define the organizational chart.

Formalization

Refers to the extent to which rules, policies, and procedures govern the behavior of employees in an organization.

Staff units

Work groups that assist line units by providing specialized services, such as HR.

Product structure

Organizational structure in which functional departments are grouped under major product divisions. Each division has its own marketing, sales, manufacturing, and finance functions

Departmentalization

Way an organization groups jobs to coordinate work.

Chain of command

Line of authority within an organization.

Organizational development

Process of enhancing the effectiveness and efficiency of an organization and the well-being of its members through planned interventions.

Matrix structure

Organizational structure that combines departmentalization by division and function to gain the benefits of both; results in some employees reporting to two managers rather than one, with neither manager assuming a superior role.

Span of control

Refers to the number of individuals who report to a supervisor.

Line units

Work groups that conduct the major business of an organization.

Functional structure

Organizational structure in which departments are defined by the services they contribute to the organization’s overall mission, such as marketing and sales, operations, and HR.