Exam 2 - chapt 7

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Centralization vs Decentralization

Centralization means that decision authority is located near the top of the organization. Decentralization means decision authority is pushed downward to lower organizational levels Greater change and uncertainty associated with decentralization Should fit the organization's strategy

CDO

Chief Digital Officer

CIO

(Chief Information Officer) Responsibilities include: information services and planning, medical records, technology, computers, electronic records.

Five Approaches to Structural Design

1. Vertical Functional 2. Divisional 3. Matrix 4. Team-Based 5. Virtual Network

Departmentalizaiton

A fundamental characteristic of organization structure that is the basis for grouping positions into departments and departments into the total organization.

Small-batch production

A type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specification.

What is the mechanism through which authority and responsibility are brought into alignment?

Accountability

BBC

British Broadcasting Corporation, the government-funded British broadcast network.

The statement, "if rules and procedures defining task activities are available, then the manager can have a wider span of control" embodies what management concept?

Contingency view

True or False: in division structure, the chain of command from each function converges at the top of the hierarchy

False

What approach to departmentalization is unique in that it calls for dual lines of authority?

Matrix

If your goal is efficiency, and if your organization faces a stable environment, then what structure is appropriate?

Mechanistic

What type of structural approach represents outsourcing?

Network

If your goal is innovation, and if your organization faces a rapidly changing environment, then what structure is appropriate?

Organic

Mass production

Process of making large quantities of a product quickly and cheaply

Relationship between Manufacturing Technology and Organization Structure

Small Batch - Mass Production - Continuous Process Technical Complexity of Production Technology: Low - Medium - High Centralization: Low - High - Low Communication: Written: Low - High - Low Verbal: High - Low - High Overall Structure: Organic - Mechanistic - Organic

Tall vs. Flat Structures

Tall: The span of control is narrow meaning there are many management levels (^think lanky: tall and narrow) Flat: The span of control is wide meaning one manager supervises many employees.

True or False: the advantages of the vertical functional approach include economies of scale and efficient use of resources

True

Continuum

a gradual progression through many stages between one extreme and another

Dell

a separate division at his company to focus specifically on products such as mobile phones and other portable devices, the fastest-growing part of the computer industry

task force

a temporary team or committee formed to solve a specific short-term problem involving several departments

Walgreens

achieved 7,000 stores by 2010 so managers shifted from a strategy of expansion to a strategy of providing exceptional customer service

Sony

added a new position of chief information security officer (CISO) to its hierarch after hackers accessed millions of customers files

Google

centralization Divisional approach

BP

centralized organization

service technology

characterized by intangible outputs and direct contact between employees and customers

CISO

chief information security officer typically considered the top information security officer in an organization. The CISO is usually not an executive level position and frequently the person in this role reports to CIO

team-based structure

consists entirely of work groups and teams which perform an organization's work; allows team members to have authority to make the decisions which will affect them; has no chain-of-command

Staff departments & staff authority

dept: include all those that provide specialized skills in support of line departments (marketing, labor relations, research, HR, accounting) authority: right to advice, recommend, and counsel in the staff specialists' area of expertise, communication relationship

Line departments & line authority

dept: performs tasks that reflect the organization's primary goal and mission authority: people in management positions have the formal authority to direct and control immediate subordinates

What approach to departmentalization can also be called product structure or self-contained unit structure?

divisional

True or False: Southwest Airlines would most likely use a divisional structure

false

Divisional Structure

groups employees and departments based on similar organizational outputs (product or services) geographic-based divisions: all functions in a specific country or region report to the same division manager (Disney Channel) customer-based divisions

Vertical Function Design

groups employees into departments based on similar skills, tasks, and use of resources

Toyota

have strong tradition of centralization, but realize the power of decentralization for promoting a sense of ownership

Differentiation

innovative products, broad market appeal, higher prices Ex: Target partners with high-end fashion designers

Cost leadership

internal efficiency, broad market appeal, lower prices Ex: Walmart

Cost focus

internal efficiency, narrow market appeal, lower prices Ex: Aldi, IKEA

Continuous process production

involves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries

What is a contingency variable in woodward's research? (small batch, mass production, continuous process)

manufacturing technology

BBC

needed a clearer management structure

Outsourcing

notion of loosely interconnected groups of companies with permeable boundries

Work specialization (division of labour)

organizational tasks are subdivided into separate jobs

project manager

person responsible for coordinating activities of several departments for the completion of a specific project

Meetup.com

pushed authority and responsibility down to the front lines

Vertical Structure

refers to the formal design of positions within departments and divisions, the lines of authority and responsibility, and the allocation of resources to them

Whole foods

success can be attributed to implementation of a team-based structure

authority

the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes Vested in organizational positions, flows down vertical hierarchy, accepted by subordinates Delegation: transfer authority to below

Coordination

the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments

Span of management/control

the number of subordinates who report to a particular manager (traditionalists 7-10, many have higher)

Virtual network structure

the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization "flexibility and competitiveness on a global scale" leanest of all organizational forms

True or False: service firms tend to have structural characteristics similar to firms using continuous manufacturing technology

true

chain of command

unbroken line of authority that links all employees in an organization and shows who reports to whom Unity of command: each employee as one boss scalar principle: clearly defined line of authority

Matrix approach

uses both functional and divisional chains of command simultaneously, in the same part of the organization two-boss employees

Valve

video game company where employees have no promotions because their is no hierarchy pay increases for those who co workers think create the most value


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