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| Information is funneled to the top of the organization to make decisions, strict hierarchy and focus on efficiency |
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| A Vertical information linkage mechanism, formal reporting relationships in a company up which problems are passed and down which solutions/decisions are passed |
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| Decision making authority is pushed down, employees are given more autonomy |
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| Grouping roles and employees together to share goals, resources and supervisor (think credit manager with finance vs credit manager with sales) |
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| Grouping employees together based on what product/output they're working on or servicing |
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| Organizing employees together in strategic business units or products, to make them nimbler, more flexible and better coordinated, and to decentralize decision making, but tends to lose economies of scale, have bad coordination across product lines, and less in depth knowledge |
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| Grouping employees who share similar skills or knowledge together |
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| Matrix structure where emphasis is placed on Functions or inputs; often functional managers have more authority (see also Product Matrix) |
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| Employees are grouped together based on what they can do and what resources/inputs they share; more efficient but slower and less flexible |
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| Grouping together employees that perform a core process of the organization, rather than separating them |
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| New method organizing employees around core processes, raw inputs to customer hands approach, often requires re-engineering and difficult to do in very vertical environments |
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| Amount of communication and coordination among employees, across the organization. In increasing order of cost and coordination: IS, Direct Contact, Task forces, Full Time integrator, Teams |
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| A permanent job located outside departments that's responsible for coordinating several departments |
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| Some one in one department specifically responsible with communicating with another department |
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Definition
| Balances functional and divisional structure. Three conditions: Scarce resources need to be shared along product lines, Environmental pressure exists for both indepth knowledge and flexibility, and environment is both unstable and uncertain. Advantages include meeting dual demands, disadvantages including balancing dual authority (two bosses with equal authority) |
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Definition
| A.K.A MAtrix grouping, using two grouping alternatives simultaneously |
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| Three key components: Formal reporting relationships, Grouping of employees, and design of systems to carry out goals |
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| Contracting out certain business (core or peripheral) processes to other companies |
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| An organized group of related tasks that work together to transform inputs (raw resources) into outputs (products or services) |
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Definition
| Matrix structure where divisional managers (product managers) are given the lead/main authority to make decisions |
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| Redesigning a vertical operation along its horizontal workflows |
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Definition
| A Vertical Information Linkage mechanism, rules and plans make repetitious decisions simple without having to go up the chain |
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Term
| Symptoms of Structural Deficiency |
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Definition
Four aspects:
- Decision making is late or poor
- innovation does not happen when needed in changing environment
- performance declines or goals are not met
- too much conflict |
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Definition
| Temporary cross-functional group that's designed to accomplish an objective (e.g. design a new product). Often dissolved after accomplishing goal |
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| Permanent cross-functional group that has the strongest horizontal linkages, for long term objectives that need strong coordination |
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Term
| Vertical Information System |
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Definition
| A Vertical information linkage mechanism, Periodic reports, written information, and computer based communication to facilitate up/down communication |
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Definition
| How to coordinate activities between the top and bottom, designer primarily for control. Involves Hierarchical referral, rules and plans, and Vertical Information systems |
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Term
| Virtual Cross-functional teams |
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Definition
| Teams with members from various departments and countries that are coordinated over the internet |
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Definition
| Grouping people through technology (i.e. Internet) |
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| Virtual Network structure |
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Definition
| Firm subcontracts many or most of its major process to other companies and coordinates their activities at small HQ |
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Definition
| Geographically disperse team connected by the internet, rather than face to face |
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