Mgmt Chapter 15

Types of Organizational Structures (4)

-Functional -Divisional -Matrix -Horizontal

Criteria for organizational effectiveness (4)

-Goal accomplishment -Internal Processes -Strategic constituencies satisfaction -Resource Acquisiton

Organizational Charts (3)

-Hierarchy of Authority -Division of Labor -Spans of Control

Types of Innovation (4)

-Product -Process -Core -Transformational

Organizational Design (3)

-Traditional -Horizontal -Open Designs

Product Innovation

A change in the appearance of the performance of a product or a service or the creation of a new one

Process Innovation

A change in the way a product or service is conceived, manufactured, or distributed

Transformational Innovation

Targeted at creating new markets and customers and rely on developing breakthroughs and inventing things that don't currently exist

Organization

a system of consciously coordinate activities or forces of two or more persons

Matrix

combines a vertical structure with an equally strong horizontal overlay. Combines functional and divisional. (more formal)

Open Systems

depends on constant interaction with the environment for survival ex: cost of college tuition

Divisional

employees are segregated into organization groups based on similar products or services, customers or clients, or geographic regions (large companies)

Horizontal Designs

flatten hierarchy and organize people around specific segments of the workflow. Attempts to dissolve departmental boundaries and reporting relationships as much as possible.

Organic

flexible networks of multi talented individuals who perform a variety of tasks. more likely to have horizontal design. (flexible, decentralized) (more effective)

Functional

groups of people according to the business functions they perform (small companies) ex: manufacturing, marketing and finance

Open Designs

have hollow, modular or virtual structure. Relies on leveraging technology and structural flexibility to maximize potential value through outsourcing and external collaboration.

Division of Labor

in addition to showing the chain of command, the sample organization chart indicates extensive division of labor. Immediately below the hospitals president, one executive direction is responsible for general administration while another is responsible for medical affairs

Goal Accomplishment

organization achieves its stated goals

Mechanistic

rigid bureaucracies with strict rules, narrowly defines tasks and top-down communication. more likely to have traditional design. (bureaucratic, centralized) to produce reliability and consistency in internal process thereby resulting in higher efficiency, quality and timeliness

Closed Systems

said to be self-sufficient entity ex: battery powered clock

Unity of Command Principle

specifies that each employee should report to only one manager

Core Innovation

targeted at existing customers and rely on optimizing existing products/services for existing customers

Horizontal

teams or work groups, either temporary or permanent, are created to improve collaboration and work on common projects (internal coordination)

Traditional Designs

tend to have functional, divisional and/or matrix structure. Each of these structures relies on a vertical hierarchy and attempts to define clear departmental boundaries and reporting relationships.

Innovation

the creation of something new that makes money; it finds a pathway to the consumer

Strategic Constituencies Satisfaction

the demands and expectations of key interest groups are at least minimally satisfied

Spans of Control

the number of people reporting directly to a given manager, Determining factor: -Organizational size -Skill level -Organizational culture -Managerial responsibilities

Resource Acquisition

the organization acquires the resources it needs

Internal Process

the organization functions smoothly within a minimum of internal strain -innovation -customer service and satisfaction -operational excellence -being a good corporate citizen

Organization Design (definition)

the structures of accountability and responsibility used to develop and implement strategies and the human resource practices and information and business process that activate those structures

Hierarchy of Authority

there is an unmistakable structure or chain of command