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Organizational Structure
the vertical and horizontal configuration of departments, authority, and jobs within a company.
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Organizational Process
the collection of activities that transform inputs into outputs that customers value.
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Departmentalization
subdividing work and workers into separate organizational units responsible for completing particular tasks
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Functional Departmentalization
organizing work and workers into separate units responsible for particular business functions or areas of expertise.
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Product Departmentalization
organizing work and workers into separate units responsible for producing particular products
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Customer Departmentalization
organizing work and workers into separate units responsible for particular kinds of customers
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Geographic Departmentalization
organizing work and workers into separate units responsible for doing business in particular geographic areas
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Matrix Departmentalization
a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together.
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Simple Matrix
a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources
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Complex Matrix
a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems
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Authority
the right to give commands, take action, and make decisions to achieve organizational objections
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Chain of Command
the vertical line of authority that clarifies who reports to whom throughout the organization
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Unity of Command
workers should report to just one boss
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Span of Management
number of subordinates reporting to a manager
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Staff Authority
the right to advise but not command others who are not subordinates in the chain of command
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Line Authority
the right to command immediate subordinates in the chain of command
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Line function
an activity directly contributing to creating or selling a firm's products/services
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Staff Function
an activity that supports line activities
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Delegation of Authority
- the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible
- But it doesn't delegate accountability
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Accountability
the obligation for the results
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Centralization of Authority
Primary authority is held by upper management
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Decentralization
significant authority is found in lower levels of the organization
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Standardization
solving problems by applying rules, procedures, and processes.
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Job Design
the number, kind, and variety of tasks that individual workers perform
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Job Specialization
a job composed of a small part of a larger task or process
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Job Rotation
periodically moving workers from one specialized job to another
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Job Enlargement
increasing the number of different tasks performed by a worker in a particular job
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Job Enrichment
adding more tasks and giving workers authority and control to make decisions
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Mechanistic Organizations
- Specialized responsibilities
- Precisely defined roles
- Centralized authority
- Vertical communication
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Organic Organizations
- Broad jobs and responsibilities
- Loosely defined roles
- Decentralized authority
- Horizontal communication
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Modular Organization
Outsource non-core business activities to outside firms
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Virtual Organizations
part of a network to collectively serve customers
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