Chapter 6

Define the 5 types of power

1. Coercive power- Power based on fear 2. Reward Power- Power based on the ability to distribute something that others value 3. Legitimate Power- Based on formal hierarchy 4. Expert Power- Power resting in someone's expertise 5. Referent Power- Power based on identification with a person who has desirable resources or personality traits.

Define Matrix Structure

A structure that combines functional and divisional chains of command. Disadvantages: Very inefficient, very few real life examples of successful adoption

What are the six key elements of organizational structure?

1. Work Specialization 2. Departmentalization 3. Authority and Responsibility 4. Span of Control 5. Centralization/Decentralization 6. Formalization

What is the difference between a mission statement and a vision statement?

A vision statement is what you hope to achieve or aspire to in the future, While a mission statement is more about what you are applying now

Define Functional Structure

AN organizational design that groups similar or related occupational specialties (UO) Advantage: Economies of scale Disadvantage: No single function responsible for meeting organisations goals.

Define Authority and Responsibility

Authority is a function of the position not a person Authority comes with responsibility and accountability. Types: Line Authority (flows from chain of command), and Staff Authority (positions that support those in line authority (Assistant GM)).

How do Authority and Power differ?

Authority is a right to use power. PP

Define Simple Structure

Authority is centralized into a single person Very few employees Micro Business

Centralization vs Decentralization

Centralization- Where CEO makes the important decisions Decentralization- Where mid-level managers and sometimes even low-level managers can also make important decisions.

Different ways to expand

Concentrate, Globalize, Vert and Hori integration, Diversify

What direction are organizations currently heading in as far as organic and mechanistic structures?

Currently most firms are heading in the direction of more organic structures with higher accountability for employees to perform.

Define Work Specialization

Dividing work into specialized tasks to improve efficiency -Higher level tasks completed by more specialized workers -Worker specialization increases worker productivity up to a point. --The more monotonous the task the higher the threat of boredom, fatigue, stress. -Giving specialized workers more variety can help increase productivity.

Define Unity of command

Every employee answers to the same manager.

What is the most effective number of people reporting to a single manager?

From 7-10, maximum of 15

Define Departmentalization

Grouping jobs into departments. (accounting) Functionality- Group based on work performed Product- Grouped based on product or service being created.(footware) Customer- Grouped based on csutomer's needs (wholesale, retail) there is mroe check slides

What are the three corporate strategies?

Growth, Stability, Renewal

Define formalization

Highly formalized - Explciit job descriptions more on pp

Types of Span of Control

Narrow- Few people reporting to a manager, the structure tends to be tall, tend to give more supervision and less autonomy Wide- This means there are many people reporting to a manager, flat structure

Define Divisional Structure

People with diverse occupational specialties are put together in formal groups by similar products, geographic regions or customers. Products divisions, customer divisions, geographic divisions. Advantages: Clear responsibility for a product or service Disadvantages: Duplication of activities in each division.

Define OG organization

Shared and flexible job tasks collaborative teams more informal communication flows wider spans of control decentralized decision making, empowered employees Fewer rules and procedures More flexibility

Define mechanistic Organization

Specialized job tasks Rigid departmentalization Hierarchical authority structure Narrow spans of control centralized decision making highly formalized rules and procedures More efficiency

What are the factors that influence whether mechanistic or organic strucutre is better for your firm?

Strategy (cost control versus innovation) Size (number of employees) Technology (assmebly line vs small batch) Environment (stable vs dynamic)

Define Boundaryless Structure

When a firm uses ourside sources to fulfill needs or projects. Using a network structure in order to get everyone to work well together. Read slides pp

What are the three competetitive strategies

cost leadership, differentiation, focus