Chapter 7- Designing Organizational Structure

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Knowledge Management System

A company -specific virtual information system that allows workers to share their knowledge and expertise and find others to help solve the problems

Business to Business (B2B) network

A group of organization that join together and use IT to link themselves to potential global suppliers to increase efficiency and effectiveness

Network Structure

A series of strategic alliances that an organization creates with suppliers, manufactures, and distributors to produce and market a product. Allows firms to bring resources together in a boundary-less organization

Strategic Alliance

An agreement in which managers pool or share firm's resources and know-how with a foreign company and the two firms share in the rewards and risks of starting a new venue

Boundary Less Organization

An organization whose members are linked by computers, faxes, computer-aided design systems, and video-conferencing and who, rarely, if ever, see one another face-to-face

Hierarchy of Authority

An organization's chain of command, specifying the relative authority of each manager

Functional Structure

An organizational structure composed of all the departments that an organization requires to produce its goods and services

Divisional Structure

An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer

Matrix Structure

An organizational structure that simultaneously groups people and resources by function and product

Market Structure

Each kind of customer is served by a self-contained division, also called customer structure

Global Product Structure

Each product division, not the country or regional managers, takes the responsibility for deciding where to manufacture its products and how to market them in a foreign countries

Product Structure

Each product line or business is handled by self-contained division

Geographic Structure

Each region of a country or area of the world is served by a self-contained division

Autonomy

Employee has freedom to schedule tasks and carry them out

Skill Variety

Employee use a wide range of skills

Organizational Structure

Formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals

Decentralizing Authority

Giving lower-level managers and non-managerial employees the right to make important decisions about how to use organizational resources

Cross-Functional Team

Group of managers brought together from different departments to perform organizational tasks

Job Enrichment

Increasing the degree of responsibility a worker has over a job

Job Enlargement

Increasing the number of different tasks in a given job by changing the division

Global Geographic Structure

Managers locate different divisions in each of the world regions where the organization operates. Generally, occurs when managers are pursuing a multi-domestic strategy

Product Team Structure

Members are permanently assigned to cross-functional team and report only to the product team manager or to one of his subordinates

Integrating Mechanisms

Organizing tools that managers can use to increase communication and coordination among functions and divisions

Line Manager

Someone in the direct line or chain of command who has formal authority over people and resources

Staff Manager

Someone responsible for managing a specialist function, such as function, such as finance or marketing

Technology

The combination skills, knowledge, tools, equipment, computers and machines used in the organization

Span of Control

The number of subordinates that report directly to a manager

Authority

The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources

Job Design

The process by which managers decide how to divide tasks into specific jobs

Organizing

The process by which managers establish the structure of working relationships among employees to achieve goals

Organizational Design

The process by which managers make specific choices that result in a particular kind of organizational structure

Job Simplification

The process of reducing the number of tasks that each worker performs

The Organizational Environment

The quicker the environment changes, the more problems face managers. Structure must be more flexible (i.e., decentralized) when environmental change is rapid

Hybrid Structure

The structure of a large organization that has many divisions and simultaneously uses many different organizational structures

Outsource

To use outside suppliers and manufactures to produce goods and services

Task Significance

Worker feels the task is meaningful to organization

Feedback

Worker gets direct information about how well the job is done

Task Identity

Worker is involved in all tasks of the job from beginning to end of the production process

Flat Structures

fewer levels and wide spans of control

Tall Structures

many levels of authority and narrow spans of control


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