Chapter 16 Organizational Structure and Design
Organizational Design
A specific organizational structure that results from managers decisions and actions
Virtual Organization
A collection of geographically distributed, functionally and/or culturally diverse aggregations of individuals that are linked by electronic forms of communications
Centralization
A dimension of organizational structure that refers to the extent to which authority to make decisions is retained in top management
Formalization
A dimension of organizational structure that refers to the extent to which rules, procedures, and other guides to action are written and enforced
Complexity
A dimension of organizational structure that refers to the number of different jobs and/or units within an organization
Boundaryless Organization
A firm in which chains of command are eliminated, spans of control are unlimited, and rigid departments are replaced with empowered teams
Matrix Model of Organizational Design
An organizational design that superimposes a product- or project- based design on an existing function-based design
Self-Managed Team
Groups of employees that complete an entire piece of work while having considerable autonomy over the way in with they accomplish their work
Scalar Chain
The graduated chain of authority created through the delegation process
Departmentalization
The manner in which an organization is structurally divided. Some of the more publicized divisions are by function, territory, product, customer and project
Vertical Differentiation
The number of authority levels in an organization. The more authority levels an organization has, the more complex is the organization
Horizontal Differentiation
The number of different units existing at the same level in an organization. The greater the horizontal differentiation, the more complex is the organization
Span of Control
The number of subordinates reporting to a superior. The span is a doctor that affects the shape and height of an organizational structure
Organic Model of Organizational Design
The organizational design that emphasizes the importance of adaptability and development. It is relatively informal, decentralized, and simple
Delegation of Authority
The process by which authority is distributed downward in an organization
Division of Labor
The process of dividing work into relatively specialized jobs to achieve advantages of specialization
Mechanistic Model of Organizational Design
The type of organizational design that emphasizes the importance of production and efficiency. It is highly formalized, centralized, and complex
