Chapter 12 Terms

Mechanistic vs. Organic organizations

Mechanistic: similar to the bureaucratic or System 1 model, most frequently found in stable environments; Organic: very flexible and informal model of organization design, most often found in unstable and unpredictable environments.

International Organizations

the relevant issue for organization design is how to design the firm to most effectively deal with international forces and compete in global markets.

Hybrid designs

a design that represents a hybrid of two or more of the common forms of organization design; i.e. an organization may have 5 related divisions and 1 unrelated division, making its design a cross between an M-form and an H-form.

Bureaucratic model of organization design

a model of organization design based on a legitimate and formal system of authority.

Behavioral model of organization design

a model of organization design consistent with the human relations movement, stressing attention to developing work groups and concern with interpersonal processes.

Team Organization

an approach to organization design that relies almost exclusively on project-type teams, with little or no underlying functional hierarchy.

Divisional (M-form) design

based on multiple businesses in related areas operating within a larger organizational framework; although each unit operates with relative autonomy, all units function in the same general market (this design resulted from a strategy of related diversification).

Functional (U-form) design

based on the functional approach to departmentalization; the members and units in the organization are grouped into functional departments such as marketing and production, and cannot survive without one another.

Matrix design

based on two overlapping bases of departmentalization; the foundation of a matrix is a set of functional departments. A set of product groups, or temporary departments, is then superimposed across the functional departments; employees in a matrix are simultaneously members of a functional department (such as engineering) and of a project team.

Integration

degree to which the various subunits must work together in a coordinated fashion.

Differentiation

extent to which the organization is broken down into subunits.

Virtual Organization

one that has little or no formal structure.

Learning Organization

one that works to facilitate the lifelong learning and personal development of all of its employee while continually transforming itself to respond to changing demands and needs.

Organizational life cycle

progression through which organizations evolve as they grow and mature.

Conglomerate (H-form) design

used by an organization made up of a set of unrelated businesses; essentially a holding company that results from unrelated diversification.