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Chapter 14 - Organization Structure and Design
Terms in this set [28]
organizational design
the process of selecting and managing aspects of organizational structure and culture to enable the organization to achieve its goals
organizational structure
the formal system of task, power, and reporting relationships
organizational chart
diagram of the chain of command and reporting relationships in a company
division of labor
the degree to which employees specialize or generalize
span of control
the number of people reporting directly to an individual
hierarchy
the degree to which some employees have formal authority over others
centralized organizations
concentrate power and decision-making authority at higher levels of the organization
decentralized organizations
the authority for making decisions affecting an organization is distributed
mechanistic organizations
rigid, traditional bureaucracies with centralized power and hierarchical communications
organic organizations
flexible, decentralized structures with less clear lines of authority, decentralized power, open communication channels, and a focus on adaptability in helping employees accomplish goals
unit production
producing in small batches or making one-of-a-kind custom products
mass production
producing large volumes of identical products
continuous production
machines constantly make the product
bureaucratic structure
an organizational structure with formal division of labor, hierarchy, and standardization of work procedures
functional structure
an organization structure that group people with the same skills, or who use similar tools or work processes, together into departments
divisional strucuture
a collection of functions organized around a particular geographic area, product or service, or market
matrix structure
employees report to both a project or product team and to a functional manager
team-based structure
horizontal or vertical teams define part or all of the organization
lattice structure
cross-functional and cross-level sub teams are formed and dissolved as necessary to complete specific projects and tasks
network organizations
a collection of autonomous units or firms that act as a single larger entity, using social mechanisms for coordination and control
virtual organizations
an organization that contracts out almost all of its functions except for the company name and managing the coordination among the contractors
joint payoffs
payments based on the final product, so that if the product doesn't make it, no firm makes a profit. This motivates everyone to do their best
restricted access
restricting their exchanges to just a few long-term partners, more dependent on each other. Decreases the incentive for one organization to take advantage of another
direct contact
managers from different units informally work together to coordinate or to identify and solve shared problems
liaison role
team member is held formally accountable for communicating and coordinating with other groups
task force
temporary committees formed to address a specific project or problem
cross-functional teams
permanent task forces created to address specific problems or recurring needs
communities of practice
groups of people whose shared expertise and interest in a joint enterprise informally binds them together
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