MGT 405 Chpt 12

The process of deciding how a company should create, use, and combine organizational structure, control systems, and culture to pursue a business model successfully

Assigns employees to specific value creation tasks and roles and specifics how these tasks and roles are to be linked together in a way that increases efficiency, quality, innovation, and responsiveness to customers

Provides managers with a set of incentives to motivate employees to create competitive advantage and specific feedback on how well an organization and its members are performing and building competitive advantage so that action can be continuously taken to strengthen the company's business model

Specific collection of values, norms, beliefs, and attitudes that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization

A collection of people who work together and perform the same types of tasks or hold similar postions in an organization

The work exchanges or transfers among people, functions, and subunits

A way of grouping functions to allow an organization to better produce and transfer its goods and services to customers

Chain of command that defines each manager's relative authority

The number of subordinates who report directly to a manager

Many levels of authority relative to company size

Fewer levels relative to the company size

A company should choose the hierarchy with the fewest levels of authority necessary to use organizational resources efficiently and effectively

Vest authority in managers at lower levels in the hierarchy as well as at the top

When managers at the upper levels of a company's hierarchy retain the authority to make the most important decisions

Formal target-setting, measurements, and feedback systems that allow strategic managers to evaluate whether a company is achieving superior efficiency, quality, innovation, and customer responsiveness and implementing its strategy successfully

The desire to share and influence the behavior of a person in a face to face interaction in the pursuit of a company's goals

A system in which strategic managers estimate or forecast appropriate performance goals for each division, department, and employee and then measure actual performance relative to these goals

Control through the establishment of a comprehensive system of rules and procedures to direct the actions or behavior of divisions, functions, and individuals

A blueprint that states how managers intend to use organizational resources to most efficiently achieve organizational goals

The degree to which a company specifies how decisions are to be made so that employees behavior become predictable

One that is innovative and that encourages and rewards middle- and lower-level managers for taking the initiatives

Group people on the basis of their common expertise and experience or because they use the same resources

A system in which employees are encouraged to help set their own goals so that managers intervene only when they sense something is not right

Geographic regions become the basis for the grouping of organizational activities

Focus on customer groups becomes basis of company strategy

Value chain activities are grouped in two ways, vertically by function and horizontally by product or project

All employees who work on a project team and are responsible for managing coordination and communication among the functions and projects

Tasks are divided along product or project line and functional specialists become part of a permanent cross-functional team that focuses on the development of one particular range of products

Any activity that is vital to delivering goods and services to customers quickly or that promotes high quality or low costs