CH. 10: Organizational Structure

Centralization

Decision authority is located near top organization levels.

Decentralization

Decision authority is pushed down to lower organization levels

Service Technology

Intangible outputs and direct contact between employees and customers. Tend to have more flexible horizontal structure.

Task Force

a temporary team or committee formed to solve a specific short-term problem involving several departments

Continuous process Production

mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries.

Organization Structure

1.) the set of formal tasks assigned to individuals and departments 2.) Formal reporting relationships, including lines of authority, decision responsibility, number of hierarchal levels, and span of managers control. 3.) the design of systems to ensure effective coordination of employees across departments.

Matrix Boss

A functional or product supervisor responsible for one side of the matrix.

Permanent Team

A group of employees from all functional areas permanently assigned to focus on a specific task or activity.

Cross-Functional Team

A group of employees from various functional departments that meet as a team to resolve mutual problems.

Modular Approach

A manufacturing company uses outside suppliers to provide large chunks of a product such as an automobile, which are then assembled into a final product by a few employees.

Small-Batch Production

A type of manufacturing technology that involves the production of goods in batches of one or few products designed to customer specification. More flexible horizontal structure.

Work Specialization

Also called division of labor, the degree to which organizational tasks are subdivided into separate jobs.

Chain of Command

An unbroken line of authority that links all individuals in the organization and specifies who reports to who.

Matrix Structure

Both Functional and Divisional chains of command simultaneously, in the same part of the organization.

Flat Structure

Characterized by an overall broad span of management and relatively few hierarchal levels.

Tall Structure

Characterized by an overall narrow span of management and relatively large number of hierarchal levels.

Relational Coordination

Frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect.

Divisional Structure

Groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks. Alternatively can group employees based on geographic region or customer group.

Functional Structure

Groups employees into departments based on similar skills, tasks, and use of resources

Organic

Horizontal approach, needed for a differentiation strategy and when the organization needs flexibility to cope with an uncertain environment

Two-Boss Employees

In a matrix structure, some employees report to two supervisors simultaneously.

Top Leader

In a matrix structure, this person oversees both the product and the functional chains of command and is responsible for the entire matrix.

Mass Production

Long production runs to manufacture a large volume of products with the same specifications. Tighter vertical structure.

Accountability

People with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Departmentalization

The basis for grouping individual positions into departments and departments into the total organization

Organizing

The deployment of organizational resources to achieve strategic goals.

Team-Based Structure

The entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals.

Span of Management

The number of employees reporting to a supervisor. Also called span of control

Virtual Network Structure

The organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.

Reengineering

The radical design of business process to achieve dramatic improvements in cost, quality, service, and speed.

Mechanistic

Vertical structure, appropriate for a cost leadership strategy, which typically occurs in a stable environment

Line Authority

When managers gave the formal power to direct and control immediate subordinates.

Staff Authority

When managers have the right to advise, counsel, and recommend in the manager's area of expertise.

Delegation

When mangers transfer authority and responsibility to positions below them in the hierarchy.

Collaboration

a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose

Project Manager

a person responsible for coordinating the activities of several departments for the completion of a specific project

Responsibility

the The duty to perform the task or activity that one has been assigned.; the flip side of authority.

Technical Complexity

the degrees to which complex machinery is involved in the production process to the exclusion of people.

Authority

the formal and legitimate right of a manger to make decisions, issue orders, and allocate resources to achieve outcomes desired by the organization.

Coordination

the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

Organization Chart

the visual representation of an organization's structure.