Term
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Definition
| Official structure of the organization |
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Term
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Definition
| a system of tasks, reporting relationships, and communication links |
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Term
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Definition
| describes the arrangement of work positions within an organization |
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Definition
| the set of unofficial relationships among an organization's members |
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Term
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Definition
| Who people dislike/like, where do they turn when they are in need of help |
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Term
| Characteristics of Functional Structure |
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Definition
Less than 500 employees
Environment simple/stable
Strategies: Cost leaders
Standardization |
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Term
| Advantages of Functional Structures |
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Definition
Economies of scale with efficient use of resources
Task assignments consistent with expertise and training
High quality technical problem solving
In depth training and skill development within functions
clear career paths within functions |
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Term
| Disadvantages of Functional Structures |
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Definition
pinpointing responsibilities
product or service quality
innovation
Functional Chimneys Problem
Excessive Upward referral of decisions |
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Term
| functional chimneys problem |
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Definition
| a lack of communication and coordination across functions |
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Term
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Definition
groups together people working on the same product, in the same area, with similar customers, or on the same processes.
Common in complex organizations |
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Term
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Definition
| Groups together people and jobs focused on a single product or service |
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Term
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Definition
| Groups together people and jobs performed in the same location |
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Term
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Definition
| Groups together people and jobs that serve the same customers or clients |
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Term
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Definition
| groups jobs and activities that are part of the same processes |
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Term
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Definition
| A group of related tasks that collectively creates a valuable work product |
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Term
| Advantages of Divisional Structures |
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Definition
-Flexible in responding to environment changes
-Improved coordination across functional departments
-Clear points of responsibility for product/service service delivary
-Expertise focused on specific customers, products, and regions
-Greater ease in changing size by adding or deleting divisions |
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Term
| Disadvantages in Divisional Structure |
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Definition
-Reduce Economies of Scale
-Increase costs through duplication of resources and efforts across divisions
-unhealthy rivalries within the company |
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Term
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Definition
| Combines the functional and divisional approaches to emphasize project or program teams |
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Term
| Advantages of Matrix Structure |
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Definition
Better communication
Better cooperation across functions
Improved decision making
Increased flexibility
Better customer service
Better performance accountability
improved strategic management |
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Term
| Disadvantages of Matrix Structure |
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Definition
Two-boss system:
-Power Struggles (Team leaders compete to gain authority)
-"groupitis"
-Higher costs |
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Term
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Definition
| uses permanent and temporary cross-functional teams to improve lateral relations |
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Term
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Definition
| Brings together members from different functional departments |
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Term
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Definition
| convened for a particular task or project and disband once it is completed |
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Term
| Advantages of Team Structure |
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Definition
Boost Morale
Greater sense of involvement and identification
increase speed and quality in decisions |
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Term
| Disadvantages of Team Structure |
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Definition
Time management
Teams spend more time in meetings
Dead time with quantity of people |
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Term
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Definition
| uses information technologies to link with networks of outside suppliers and service contractors |
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Term
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Definition
| A cooperation agreement with another organization to jointly pursue activities of mutual interest |
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Term
| Advantages of Network Structure |
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Definition
-reduces overhead and increasing operating efficiency
-allows organizations to employ outsourcing strategies and contract out specialized business functions |
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Term
| Disadvantages of Networking Structure |
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Definition
-More complex the business- more complicated to use
-Potential to lose control over activities contracted out |
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Term
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Definition
| uses IT and the Internet to engage a shifting network of strategies alliances |
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Term
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Definition
| the process of creating structures that accomplish mission and objectives |
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Term
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Definition
| emphasizes formal authority, order, fairness, and efficiency. Mechanistic design |
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Term
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Definition
| centralized, with many rules and procedures, a clear-cut division of labor, narrow spans of control, and formal coordination. WORK IN A STABLE ENVIRONMENT |
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Term
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Definition
| decentralized, with fewer rules and procedures, open divisions of labor, wide spans of control, and more personal coordination. WORK IN A RAPID CHANGING AND UNCERTAIN ENVIRONMENT |
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Term
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Definition
| operates with a minimum of bureaucratic features and encourages worker empowerment and teamwork. Organic Designs |
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Term
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Definition
| links all persons with successively higher levels of authority |
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Term
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Definition
| the number of subordinates directly reporting to a manager |
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Term
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Definition
| Narrow span of control and many hierarchical levels |
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Term
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Definition
| wide spans of control and few hierarchical levels |
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Term
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Definition
| the process of entrusting work to others by giving them the right to make decisions and take action |
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Term
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Definition
| allows others to make decisions and exercise discretion in their work |
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Term
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Definition
| the concentration of authority for most decisions at the top level of an organization |
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Term
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Definition
| the dispersion of authority to make decisions throughout all organization levels |
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Term
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Definition
| provide technical expertise for other parts of the organization |
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Term
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Definition
Division of work
Supervisory relationships
communication channels
major subunits
levels of management |
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Term
| Advantages of Informal Structure |
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Definition
Help people accomplish work
overcoming limits of formal structure
gain access to intrapersonal networks
informal learning |
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Term
| Disadvantages of Informal Structure |
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Definition
May work against best interests of organizations
Susceptibility to rumors
May breed resistance to change
Diversion of work efforts from important goals
Alienation of "outsiders" |
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Term
| Trends in Organizational Design |
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Definition
Fewer levels of management
Wider spans of control
More delegations and empowerment
decentralization with centralization
Reduced use of staff- no more secretaries |
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