Chapter 8

Mechanistic Organization

Authority is centralized, tasks and rules are clearly specificed and employees are closely supervised

Organic Organization

Authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks

Market Culture

Competitive Culture Has a strong external focus and values stability and control

Organizational Design

Concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies

Flat Organization

Defined as one with an org. structure with few or no levels of middles management between top managers and those reporting to them

Customer Divisions

Group activities around common customers or cilents

Geographic Divisions

Group activities around defined regional locations

Product Division

Group activities around similar products, or services

Functional Structure

Grouping by similar work specialities People wit similar occupational specialities are put together in formal groups

Clan Culture

Has an internal focus and values flexibility rather than stability and control Employee Focused

Accountability

Managers must report and justify work results to the managers above them

Narrow Span of Control

Means a manager has a limited number of people reporting

Wide Span of Control

Means a manager has several people reporting

Competing Values Framework

Org cultures can be classifed into four types 1. Clan 2. Adhocracy 3. Market 4. Hierarchy

Authority

Refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources

Adhocracy Culture

Risk-Taking Has a external focus and values flexibility

Organizational Culture

Sometime called corporate culture, is defined as the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about it, and reacts to its various environments

Coordinated effort

The coordinations of individual efforts into a group or organization wide effort

Responsibility

The obligation you have to perform the tasks assigned to you

Delegation

The process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

Contingency Design

The process of fitting the organization to its environment

Hierarchy of Authority

or Chain of Command, is a control mechanism for making sure the right people do the right things at the right time

Hollow structure

Also called network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

Division of Labor

Also known as work specialization, is the arrangement of having discrete parts of a task done by different people

Matrix Structure

An organization combines functional and divisional chains of command in a grid so that there are two command structures - vertical and horizontal

Divisional Structure

Grouping by similarity of purpose People with diverse occupational specialities are put together in formal groups by similar products or services, customers or cilents, or geographic regions

Staff Personnel

Have authority functions, they provide advice, recommendations, and research to line managers

Line Managers

Have authority to make decisions and usually have people reporting to them

Centralized Authority

Important decisions are made by higher-level managers

Decentralized Authority

Important decisions are made by middle-level and supervisory-level managers

Organization

Is a system of consciously coordinated activities or forces of two or more people

Differentiation

is the tendency of the parts of an organization to disperse and fragment

Hierarchy Culture

A Structured Culture Has a strong internal focus and values stability and control over flexibility

Organization Chart

A box-and-lines illustration showing the formal lines of authority and the organization's official positions of work specializations

Virtual structure

A company outside a company that is created "specifically to respond to an exceptional market opportunity that is often temporary"

Modular Structure

A firm assembles product chunks, or modules, provided by outside contractors

Organizational Structure

A formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the org's goals

Simple Structure

For small firms Has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization

Common Purpose

Unifies employees or members and gives everyone an understanding of the organization's reason for being

Unity of Command

Which an employee should report to no more than one manager in order to avoid conflicting priorities and demands

Horizontal Design

also known as team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries

Virtual organization

an org. whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections

Boundary-less organization

is a fluid, highly adaptive organization whose members linked by information technology, come together to collaborate on common tasks

Integration

is the tendency of the parts of an organization to draw together to achieve a common purpose

Span of Control

or span of management refers to the number of people reporting directly to a given manager two kinds narrow (or tall) and wide (or flat)