Combo Organizational Structure/culture
Handy's Shamrock organization consists of:
1. Core managerial and technical staff 2. Outsourced functions by independent providers 3. Flexible workers on temporary and part-time contracts
AGILE ORGANIZATION
A FIRM THAT IDENTIFIES A SET OF BUSINESS CAPABILITIES CENTRAL TO HIGH-PROFITABILITY OPERATIONS AND THEN BUILDS A VIRTUAL ORG AROUND THE OPPORTUNITIES.
DIVISIONAL ORGANISATION STRUCTURE
A STRUCTURE IN WHICH A SET OF RELATIVELY AUTONOMOUS UNITS ARE GOVERNED BY A CORPORATE OFFICE.
FUNCTIONAL ORGANIZATION STRUCTURE
A STRUCTURE IN WHICH TASK, PEOPLE AND TECHNOLOGY ARE DIVIDED INTO SEPARATE FUNCTIONAL UNITS; IE. MARKETING, SALES, ETC...MORE FORMAL PROCEDURES ARE NEEDED.
HOLDING COMPANY STRUCTURE
A STRUCTURE IN WHICH THE CORPORATE ENTITY IS A BROAD COLLECTION OF UNRELATED BUSINESS AND DIVISIONS. THE CORPORATE ENTITY ACTS AS A FUNCTIONAL OVERSEER "HOLDING" THE OWNERSHIP BUT HAVE VERY LITTLE DIRECT MANAGERIAL INVOLVEMENT..
Organizational climate
An aspect of culture that is defined as: The shared perceptions organizational members have about their organization and work environment.(Team Spirit)
Work Specialization
Dividing work activities into separate job tasks; also called division of labor
Staff Authority
Positions with some authority that have been created to support, assist, and advise those holding line authority
What are the two main elements of the environmental scanning process?
Internal and external assessment
Offshoring
Is a form of *outsourcing* that involves relocating business functions and processes to another country.
Outsourcing
Is the act of finding external people or businesses to carry out non-core functions of business, such as IT, payroll and transport.
When performing an internal assessment of an organization's strengths and weaknesses the areas to be reviewed will depend on the nature of the business. Regardless of this, what should the assessment include?
An assessment of the performance of every function of the business.
Departmentalization
Coherent units within the organization
DESCRIBE WHAT IS MEANT BY AGILE, VIRTUAL ORGANIZATIONS
TEMPORARY NETWORKS OF INTERDEPENDENT COMPANIES LINKED BY INFORMATION TECH TO SHARE SKILLS, MARKETS AND COSTS.
DESCRIBE BOUNDARYLESS ORGS AND WHY THEY ARE IMPORTANT.
THE ABSENCE OF INTERNAL AND EXTERNAL BOUNDARIES BETWEEN UNITS, LEVELS AND LOCATIONS THAT LESSEN THE COMPANY'S ABILITY TO GENERATE KNOWLEDGE, SHARE KNOWLEDGE AND GET KNOWLEDGE TO THE PLACE IT CAN BE USED TO CREATE VALUE.
ORGANIZATIONAL STRUCTURE
THE FORMALIZED ARRANGEMENTS OF INTERACTION BETWEEN AND RESPONSIBILITY FOR THE TASKS, PEOPLE AND RESOURCES IN AN ORGANIZATION.
Cross-functional Teams
Teams made up of individuals from various departments and that cross traditional departmental lines
Contingent Workers
Temporary, freelance, or contract workers whose employment is contingent upon demand for their services
What does the pre-arrival stage recognize?
That each individual arrives with a a set of values, attitudes and expectations both the work and the organization .
Core Values
The primary or dominant values that are accepted throughout the organization
FUNCTIONAL ORGANIZATION
UNITS CAN FOCUS ON EACH ASPECT OF THE BUSINESS. THE POTENTIAL FOR CONFLICT AMONG UNITS MAKES COORDINATING ROLE OF CE ESSENTIAL. AS THE FORM DIVERSIFIES THE OVERSEEING OF TOO MANY PRODUCTS MAKES IT INADEQUATE.
What is the difference between Serial and Random socialization?
Use of role models to enourage new employees vs. leaving them to learn on their own
Material Symbols
What conveys to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate.
What is the difference between Formal and Informal socialization?
When employee is segregated from work setting vs. When employee is directly involved right away in the work setting
Organizational Design
When managers develop or change the organization's structure
Job Sharing
When two or more people split a full-time job
Language
Words and statements that convey the organization's culture. Fun, comfortable...etc
6 Key Elements in Organizational Design
Work Specialization; departmentalization; authority, responsibility, and power; span of control; centralization and decentralization; and formalization
flat organizational structure
an organizational hierarchy with only a few layers in which managers have a wide span of control
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
organizational design
designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies
functional structure
expansion of functional departmentalization; groups employees with similar and related occupational specialties; used as a framework for an entire company
virtual organizations
organizations composed of a continually evolving network of companies linked together to share skills, costs, and access to markets. They form a partnership to capitalize on their existing talents, pursuing common objectives
team-based organizations
organizations in which autonomous work teams are organized in parallel fashion such that each performs many different steps in the work process
Functional Departmentalization
organized around similar abilities and/or functions -Advantages: * Efficiency * Better Distribution of work * Can rely on other peers as resources for assistance * Performance evaluation should be easier -Disadvantages: * Poor coordination between departments * Departments don't understand and can't meet needs of other departments * Best in small and medium sized companies
supervisors
part of an organization's management team; oversee the work of operative employees; are the only managers who do not manage other managers; considered first-level managers
informal groups
people at work who have formed their own associations based on friendship and/or common interests
divisional structure
people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions
functional structure
people with similar occupational specialties are put together in formal groups
interorganizational designs
plans by which two or more organizations come together
downsizing
practice of eliminating jobs, typically at the middle layers of organization charts
The Management Process
refers to accomplishing goals and objectives effectively and efficiently; involves using your resources competently; always has an end goal of achievement; accomplished through a specific organizational structure
value-chain partnerships
strategic alliance between companies in different industries that have complementary capabilities
joint ventures
strategic alliances in which several companies work together to fulfill opportunities that require one another's capabilities
staff authority
supports line authority; allows others to advise, service and assist the supervisor if needed; allows for input and suggestions from additional staff members, but does not guarantee implementation
these are the 4 primary ways that culture is transmitted to employees
symbols, stories, heroes, rites & rituals
horizontal design
teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries
formal groups
the official organization of people based on the needs of the business, such as by function or department
delegation
the passing on of authority to a person lower down in the organizational behalf
vertical integration
the practice in which companies owe their own suppliers and/or their own customers who purchase their products from them
chain of command
the principle in which an employee should have only one supervisor to whom he or she is responsible; decreases conflicting demands and priorities
delegation
the process of assigning managerial authority and responsbility to managers and employees lower in the hierarchy
organizational design
the process of coordinating the structure elements of organizations in the most appropriate manner
contingency design
the process of fitting the organization to its environment
delayering
the process of removing one or more levels in the hierarchy in order to flatten out the organizational structure
re-engineering
the radical redesign of organizational structure to better suit the changing needs of the business
authority
the rights of a supervisory position to give orders; one person's position over another
differentiation
the tendency of the parts of an organization to disperse and fragment
integration
the tendency of the parts of an organization to draw together to achieve a common purpose
these are the two types of information found on an organization chart
vertical hierarchy of authority (who reports to whom), horizontal specialization (who specializes in which work)
modular structure
when a firm assembles product chunks, or modules, provided by outside contractors
midlife stage
when an organization becomes bureaucratic - a period of growth evolving into stability
maturity stage
when an organization becomes very bureaucratic, large, and mechanistic
matrix structure
when an organization combines functional and divisional chains of command in a grid so that there are two command structures - vertical and horizontal
youth stage
when an organization is in prebureaucratic stage - a stage of growth and expansion
mechanistic organization
when authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
organic organization
when authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
geographic divisions
when divisions are arranged around activities connected to regional locations
customer divisions
when divisions are arranged by activities around common customers or clients
product divisions
when divisions are arranged by activities around similar products or services
wide (flat) span of control
when managers have a larger number of people reporting to them and little hands-on supervision is required
narrow (tall) span of control
when managers have a limited number of people reporting to them, but there are many levels below each of those reporting to the manager
decentralized structure
when some decision-making authority and responsibility is passed onto others in the organization
target market departmentalization
groups activities around common customer categories; uses the assumption that customers in each department have a common set of problems and needs can be met by having specialists for each
process departmentalization
groups activities based on work or customer flow; provides a basis for the homogeneous categorizing of activities
functional departmentalization
groups activities with similar functions by units or departments; can be used in all types of organizations; reflects the purpose of the company
learning organizations
have developed a capacity to continuously adapt and change because members take an active role in identifying and resolving work-place issues; employees must collaborate on work activities throughout the organization and have a team oriented work ethic
Structure
how organizations divides its work into tasks and coordinates them.
unity of command
in order to avoid conflicting priorities and demands, an employee doesn't report to no more than one manager
Dignity Culture
individuals are eager to define themselves based on their own internal judgment and may be more resistant to outside efforts to define them (US, Canada)
Face culture
individuals use information from others in order to determine who thy are, allowing themselves to be defined by social opinion (East Asian Countries)
External environment
is the sum of all the forces impinging on an organization with which it must deal effectively if it is to survive. (banks are a good example) * an environment is considered stable whenever there is a little or no unexpected change in product, market demands, or technology
simple structure
non-elaborate structure; has little formalization; has a centralized authority
flexible structures
not based on the traditional hierarchical organization of human resources; rather such structures enable a business to adapt their human resources when there is a need to respond to rapid change
boundaryless organization
not defined or limited by boundaries or categories imposed by traditional structure; blurs boundaries surrounding an organization by increasing its interdependence with its environment
these are the 3 layers or organizational culture
observable artifacts, espoused values, basic assumptions
work specialization
occurs when a job is broken down into a number of steps which are each completed by a different individual
decentralization
occurs when decisions are made by the individuals who are the closest to the problem; more conducive to making changes in a process
centralization
occurs when only a select few people at the top of an organization make the decisions
Stories
organization's founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. Also the narratives an employee tells his/her self about how he/she fits in the job.
responsibility
the obligation you have to perform the tasks assigned to you
STRATEGIC BUSINESS UNIT
(PART OF DIVISIONAL STRUCTURE) - FOCUSES COORDINATION, STRATEGY DEVELOPMENT TO UNIQUE ENVIRONMENTS OF EACH DIVISION. FOCUSES ACCOUNTABILITY, SPECIALIZATION TO PRODUCT MARKETS AND QUICK RESPONSE TO CHANGE. POTENTIALLY CAN FOSTER DYSFUNCTIONAL COMPETITION AMONG SBU'S, AUTHORITY ISSUES, INCONSISTENCY, DUPLICATION OF FUNCTIONS AND DIFFICULTY MAINTAINING OVERALL CORPORATE IMAGE.
Flat organizations
* Few levels of management * Greater span of control * Decision making is pushed down * More job satisfaction in flat because of greater empowerment and job enrichment (although this isn't true in large organizations (over 5,000) * Flat organizations usually have lower costs * Flat tend to be more agile and flexible
When is coordination between departments most important?
* Functional Departmentalization * Flat organizations
Coordination alternatives
* Introduce another level of management in the organization * Bad - it increases costs and lowers empowerment * Integrators * Increases costs and they have little authority * Liaison Roles * Task forces or cross-functional teams * Can lead to too many meetings
Tall Organizations
* Many levels of management * Generally smaller span of control (number of people or functions for which you are responsible) * More centralized decision making * Tall organizations are effective in stable organizations that thrive on predictability * Between dept. communication is better in tall organizations
intraorganizational designs
* designs that concentrate on the arrangement of units within one organization.
Matrix Advantages
* permit flexible use of an organization's human resources * matrix designs offer organizations an efficient means of responding quickly to a changing, unstable environment. * such designs often enhance communication among managers * Efficiency * Better coordination of efforts
Product Departmentalization
- Organized around a product or consumer Advantages * Better communication of needs and coordination of functional specialists * Products can be evaluated as profit centers Disadvantages * Lose economies of scale * Little peer assistance * Duplication of efforts
Organizational Diagnosis
- Symptoms of organization problems * Slow response times to customer/market changes * Problem-org too tall, functional dept. * High absenteeism/turnover - Job dissatisfaction * Problem-org too tall, matrix dept., bad supervisors * Right hand doesn't know what left is doing * Problem-too flat, no coordination between depts. * Too many committees * Problem-too flat, inefficient communication between depts.
Matrix Departmentalization
- employees report to more than 1 manager (usually a functional and a product manager)
Matrix Disadvantages
-Conflict among managers -Unclear performance standards -include frustration and stress faced by two-boss managers.
mechanistic organization
-an internal organizational structure that is stable in nature, where people perform jobs that do not change much over the years. -allow for a high degree of specialization -impose many rules-authority vested in a few people located at the top of a hierarchy -tend to be most effective under conditions in which the external environment is stable and unchanging
*Advantages* of *matrix structure* include:
1. A culture of teamworking and collaboration is created in the organisation. 2. Experts from different parts of the business can be brought together to work as a project team - increasing the chances of successful completion. 3. Good career and personal development opportunities are provided for team members and the project manager. 4. Projects can be spread out amongst various teams - reducing the pressures on senior management. 5. The ability of staff to work on different projects adds interest and variety to the work and increases staff motivation.
*Advantages* of *centralization*:
1. A fixed set of rules and procedures in all areas of the firm should lead to rapid decision-making. 2. The business has consistent policies throughout the organisation. This prevents any conflicts between the divisions and avoids confusion in the mind of consumers. 3. Senior managers take decisions in the interest of the whole business - not just one division of it. 4. Central buying should allow for greater (purchasing) economies of scale. 5. Senior managers at central office will be experienced decision-makers.
What are the two main things an environmental scan provides?
1. A framework for collecting information about factors relevant to the decision-making process 2. Helps management make decisions that take advantage of existing opportunities and avoid pitfalls
Name the 3 barriers an institutionalized climate might have on an organization/employees?
1. Barrier to Change 2. Barriers to Diversity 3. Barriers to Acquisitions and Mergers
What 5 things can mangers do to create a more ethical culture?
1. Be a visible role model and send a positive message 2. Communicate ethical expectations 3. Provide ethical training 4. Visibly reward ethical acts and punish unethical ones 5. Provide protective mechanism for employees to discuss ethical dilemmas and report unethical behaviors
What are the 4 characteristics of Spiritual Organization
1. Benevolence or showing kindness towards others 2. Strong sense of purpose or building cultures around meaningful purpose 3. Trust or treating employees with value 4. Open-mindedness
What are some examples of economic situations that should be considered in a PEST analysis?
1. Can customers afford the organization's products? 2. The unemployment rate 3. Interest rates 4. Inflation 5. Changes in fiscal policy 6. State of stock markets 7. Price of real estate 8. Strength of the dollar
*Disadvantages* of *delayering*
1. Could be one-off costs of making managers redundant; e.g., redundancy payments 2. Increased workload for managers who remain - this could lead to overwork and stress 3. Fear that redundancies might be used to cut costs could reduce the sense of security of the whole workforce (see Maslow: *security needs*)
Why workplace spirituality? Name 4
1. Counterbalances the pressures of turbulent pace of life. 2.Formalized religion hasn't worked for many people. 3. People want to integrate personal life values with their professional life 4. People are realizing martial things are infilling
*Advantages* of *less hierarchical* organizational structures - *wide span of control*
1. Delegation becomes a relatively important part of managing an organization - extra responsibilities for subordinates and, therefore, faster career development 2. Communication may be improved (it should be faster) overall since there are fewer layers in the hierarchy 3. It is cheaper to operate a wider span of control because there are fewer levels of management (management functions will be eliminated or delegated) 4. Smaller 'psychological distance' between those at the top and those at the bottom of an organisation - perhaps reducing an 'us and them' culture where workers feel alienated from senior management
What are some examples of social situations that should be considered in a PEST analysis?
1. Demographics of the target market 2. For multinational corporations, analyzing the social factors of widely diverse markets
What can an organization do to achieve spiritual culture?
1. Facilitate a spiritual workplace that supports work-life balance 2. Leaders can demonstrate values, attitudes, and behaviors that trigger intrinsic motivation and a sense of calling through work. 3. Encouraging employees to consider how their work provides a sense of purpose through community building
EXPLAIN WAYS IMPROVEMENTS HAVE BEEN SOUGHT IN TRADITIONAL ORGANIZATIONAL STRUCTURES.
1. GLOBALIZATION 2. INTERNET 3. SPEED 4. HYBRID APPROACH THAT EMPHASIZES AN EXTERNAL FOCUS, FLEXIBLE INTERACTIONS, INTERDEPENDENCY AND A BOTTOM UP APPROACH.
*Advantages* of *delegation*:
1. Gives senior managers more time to focus on important, strategic roles 2. Shows trust in subordinates which can challenge and motivate them 3. Develops and trains staff for more senior positions 4. Helps staff to achieve fulfilment through their work (*self-actualization*) 5. Encourages staff to be accountable for their work-based activities
What are the five questions that should be used to gather information when using Porter's 5 Forces analysis?
1. How likely is it that new competition will enter the market? 2. How reliant is the organization on its suppliers? 3. How diverse is the organization's customer base? 4. Are comparable replacement products available to customers at a reasonable cost? 5. What is the level of competition in the marketplace?
*Limitations* of *delegation*:
1. If the task is not well-defined or if inadequate training is given, then delegation will be unlikely to succeed 2. Delegation will be unsuccessful if insufficient power (authority) is also given to the subordinate who is performing the tasks 3. Managers may only delegate the boring jobs that they do not want to do - this will not be motivating
What are some examples of political situations that should be considered in a PEST analysis?
1. Increased government regulations and events that influence them, such as massive business frauds 2. Changes in employment regulations 3. For multinational corporations, the political situations in each country of operation. This includes the stability of the government, restrictive trade policies and friendliness of the government to foreign investment
What are some sources of information for environmental scanning?
1. Industry associations 2. Government agencies 3. Trade organizations 4. Customers and suppliers 5. Business-focused cable channels 6. Business publications
How does a positive climate influence the organization/employees? Name 4
1. Influences the habits people adopt 2. Employees will think about doing a good job 3. Employees feel they can share information regardless of their demographic differences 4. Lead to high levels of performance
What are the 7 primary characteristics of Organizational Culture?
1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientaion 5. Team orientation 6. Aggressiveness 7. Stability
What are the 5 boundary-defining roles of culture?
1. It creates distinctions between one organization and others 2. It conveys a sense of identity for organization members 3. Facilitates commitment to something larger than individual self-intreat 4. It enhances the stability of social system 5. Acts as a sense-making and control mechanism that guides and shapes attitudes and behavior
What are the benefits to performing an employee attitude assessment?
1. It provides insight into how well the organization is meeting employee needs 2. It provides insight into the level of employee engagement 3. It provides input for changes to a benefit package or other HR programs
What are some of the benefits strong cultures offer?
1. Low employee turnover because there is high agreement 2. Builds cohesiveness, loyalty, and organizational commitment 3. Mangers do not need to be concerned with developing formal rules and regulations to guide employee behavior
*Disadvantages* of *centralization*:
1. More local decisions can be made which reflect different conditions - the managers who take decisions will have local knowledge and are likely to have closer contact with consumers. 2. More junior managers can develop skills and this prepares them for more challenging roles. 3. Delegation and empowerment are made easier and these will have positive effects on motivation. 4. Decision-making in response to changes; e.g., local market conditions, should be quicker and more flexible as head office will not have to be involved every time.
What are the three stages of socialization?
1. Pre arrival Stage 2. Encounter 3. Metamorphosis
What are some ways internal assessment information can be collected?
1. Questionnaires 2. Qualitative analyses 3. Focus groups 4. Surveys 5. Stakeholder interviews
What are some examples of technological situations that should be considered in a PEST analysis?
1. Rate of change of technology 2. Cost of purchasing new technology 3. Level of automation in an organization, which impacts the overall cost of products
*Advantages* of *delayering*:
1. Reduces business costs 2. Shortens the chain of command and should improve communication through the organisation 3. Increases the span of control and opportunities for delegation 4. May increase workforce motivation due to less remoteness from top management and greater chance of having more responsible work to perform
IDENTIFY FIVE TRADITIONAL ORGANIZATION STRUCTURES AND THE PROS AND CONS OF EACH.
1. SIMPLE ORGANIZATION STRUCTURE 2. FUNCTIONAL ORGANIZATION 3. DIVISIONAL STRUCTURE 3.1. STRATEGIC BUSINESS UNIT 4.MATRIX STRUCTURE 5. PRODUCT TEAM STRUCTURE
What three roles play a virtual role in sustaining a culture?
1. Selection practices 2. The actions of top management 3. Socialization methods
*Disadvantages* of *matrix structure* include:
1. Since team members have two line managers, there may be a conflict of interest, such as loyalty and prioritisation of workloads (e.g., the project may come first and departmental work second). 2. There is potential for team members to not get along with each other, and because teams are formed on a temporary basis, there is less of an obligation to ensure good team dynamics. 3. Project managers may have difficulty controlling team members who have conflicting interests, priorities and personal difference with team members.
What are some examples of environmental scanning tools?
1. Statistical models 2. SWOT Analysis 3. PEST Analysis 4. Porter's 5 Forces
What 4 ways is culture transmitted to employees?
1. Stories 2. Rituals 3. Material symbols 4. Language
How can information for an employee attitude assessment be gathered?
1. Surveys (in-house or outsourced) 2. Interviews 3. Focus groups
What are the 4 different types of culture based on competing values.
1. The Collaborative and Cohesive clan 2. The innovative and adaptable adhocracy 3. The controlled and consistent hierarchy 4. Competitive and customer focused market
What differentiates culture from job satisfaction.
1. The fact that culture does not deal with the fact if employees like their organizational culture or not 2.Organizational culture is descriptive, whereas job satisfaction is evaluative.
Factors influencing organizational structure:
1. The size of the business and the number of employees 2. The style of leadership and the culture of management (e.g., autocratic vs. democratic leadership styles) 3. Overhead costs - delayering will reduce management overheads 4. Corporate objectives; e.g., overseas expansion will necessarily mean some decentralization 5. New technologies, especially IT can facilitate the flow of information making some roles of middle management less important
*Advantages* of *hierarchical* organisational structures - *narrow span of control*
1. There is quicker communication between smaller teams 2. Feedback from subordinates should be more effective 3. Clearer (but longer) lines of communication between the different layers of management 4. Smaller teams are easier to control and manage 5. Greater specialisation and division of labour can help increase efficiency and productivity 6. There are greater opportunities to earn promotion - more levels exist in the hierarchy
When is the 3 part socialization process complete?
1. When members have internalized and accepted the norms of the organization, and their work group, are confident in their competence, and feel trusted and valued by their peers. 2. They understand the system 3. They Know what is expected of them
The organizational chart shows:
1. Who has *overall responsibility* for decision-making 2. The *formal relationships* between people and departments 3. The *chain of command* 4. The *span of control* 5. Formal *channels of communication* 6. Identity of the supervisor or manager to who each worker is answerable and should report to
Name the 3 ways a culture is created
1.Founders hire and keep only employees who think and feel the same way they do 2.They indoctrinate and socialize these employees to their way of thinking and feeling. 3. The founders' own behavior encourages employees to identify with them and internalize their beliefs, values, and assumptions.
BUSINESS PROCESS REENGINEERING
A CUSTOMER-CENTRIC BUSINESS RESTRUCTURING APPROACH.WHICH IS A FUNDAMENTAL RETHINKING AND RADICAL REDESIGN OF A BUSINESS PROCESS SO THAT A COMPANY CAN BEST CREATE A VALUE FOR THE CUSTOMER BY ELIMINATING BARRIERS THAT CREATE DISTANCE BETWEEN EMPLOYEES AND CUSTOMERS.
Mechanistic Organization
A bureaucratic organization; a structure that's high in specialization, formalization, and centralization
Institutionalization
A condition that occurs when an organization takes on a life of its own, apart from any of its members and acquires immortality It is values for itself and not for the goods or services it produces
Strong Cultures
A culture in which the core values are intensely held and widely shared
Positive Organizational Culture
A culture that emphasizes building on 1. Employee strengths 2. Rewards more than punishes, and 3. Emphasizes individual vitality and growth.
Dominant culture
A culture that expresses the core values that are shared by a majority of organization's members
Socialization
A process that adapts employees to the organization's culture.
Level of hierarchy
A stage of the organization structure at which the personnel on it have equal status and authority
Project Structure
A structure in which employee continuously work on projects
Matrix Structure
A structure in which specialists from different functional departments are assigned to work on projects led by a project manager
Team Structure
A structure in which the entire organization if made up of work teams
Organic Organization
A structure that's low in specialization, formalization, and centralization
Organizational Culture
A system of shared meaning held by by members that distinguishes the organization from other organizations
Telecommuting
A work engagement in which employees work at home and are linked to the workplace by computer
Flextime (flexible hours)
A work scheduling system in which employees are required to work a specific number of hours per week but can vary when they work those hours within certain limits
Compressed Worksheet
A worksheet where employees work longer hours per day but fewer days per week
STRATEGIC ALLIANCE
ALLIANCES WITH SUPPLIERS, PARTNERS, CONTRACTORS AND OTHER PROVIDERS THAT ALLOW PARTNERS IN THE ALLIANCE TO FOCUS ON WHAT THEY DO BEST, FARM EVERYTHING ELSE OUT AND QUICKLY PROVIDE VALUE TO THE CUSTOMER.
SELF-MANGEMENT
ALLOWING WORK GROUPS OR TEAM TO SUPERVISE AND ADMINISTER THEIR WORK AS A GROUP OR TEAM WITHOUT A DIRECT SUPERVISOR EXERCISING THE SUPERVISORY ROLE.
MATRIX STURCTURE
ALLOWS COMPANIES TO ASSIGN FUNCTIONAL SPECIALIST TO CERTAIN PROJECTS WHILE HAVING THE REMAIN ACCOUNTABLE TO THEIR "HOME" FUNCTIONAL UNIT. CAN CREATE SPECIAL SYNERGY, TEAMWORK AND COOPERATION BECAUSE THESE SPECIALIST ARE TOGETHER TO BUILD A NEW REVENUE STREAM FORM ITS INCEPTION TO IT EXPANSION. TEMPORARY.
DIVISIONAL STRUCTURE
ALLOWS CORPORATE TO DELEGATE RESPONSIBILITIES AMONG DIVISIONS AND ENABLES THEM TO CONCENTRATE ON CORPORATE-LEVEL DECISIONS. IT MAY BECOME DIFFICULT TO CONTROL ALL DIVISIONS.
MODULAR ORGANIZATION
AN ORGANIZATION STRUCTURED VIA OUTSOURCING WHERE THE ORG'S FINAL PRODUCT OR SERVICE IS BASED ON THE COMBINATION OF SEVERAL COMPANIES SELF-CONTAINED SKILLS AND BUSINESS CAPABILITIES.
PRODUCT TEAM STRUCTURE
ASSIGNS FUNCTIONAL MANAGERS AND SPECIALIST TO A NEW PRODUCT, PROJECT OR PROCESS TEAM THAT IS EMPOWERED TO MAKE MAJOR DECISIONS ABOUT THEIR PRODUCT. TEAM MEMBERS ARE ASSIGNED PERMANENTLY IN MOST CASES. 1. CREATES CROSS FUNCTIONAL UNDERSTANDING THAT IRONS OUT EARLY PRODUCT OR PROCESS DESIGN PROBLEMS. 2. REDUCES COST ASSOCIATED WITH DESIGN, MANUFACTURING AND MARKETING. WHILE TYPICALLY SPEEDING UP INNOVATION AND CUSTOMER RESPONSIVENESS BECAUSE AUTHORITY REST WITH THE TEAM ALLOWING DECISIONS TO BE MADE QUICKLY.
Porter's 5 Forces
According to Michael Porter in 1980, five forces that are found in all businesses: 1. New competitors 2. Suppliers 3. Buyers 4. Alternative products available to consumers 5. The type and level of industry competition
Selection
Allows employer or applicant to avoid a mismatch and sustaining an organization's culture by selecting out those who might attack or undermine its core values.
modular organizations
Also called "Network Organizations" -businesses that outsource noncore functions to other companies while focusing on their own core business.
PEST Analysis
Also known as a STEP analysis. Scan of the external environment to identify opportunities and threats as part of a SWOT analysis. PEST is an acronym for political, economic, social, and technological factors.
Product-based organization structure
Also known as a customer-oriented organization structure. Organizational structure suitable when product lines are well defined and clearly separate. Each product line reports directly to the CEO and can be centralized or decentralized.
Power
An individual's capacity to influence decisions
Responsibility
An obligation to perform assigned duties
Project-based organisations - Matrix structure
An organisational structure that creates project teams that cut across traditional functional departments.
Virtual Structure
An organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects
Learning Organization
An organization that has developed the capacity to continuously learn, adapt, and change
Network Organization
An organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes
Boundaryless Organization
An organization whose design is not defined by or limited to boundaries imposed by a predefined structure
Functional Structure
An organizational design that groups similar or related occupational specialties together
Simple Structure
An organizational design with low departmentalization, wide spans of control, authority centralized by a single person, and little formalization
Divisional Structure
An organizational structure made up of separate business units or divisions
*Flat* (*less hierarchical*) organizational structure
An organizational structure that has few levels of hierarchy and a *wider span of control* where managers will be responsible for many subordinates and many management functions will be delegated
*Hierarchical* (*bureaucratic*) organizational structure
An organizational structure where there are fewer and fewer people on each higher level
Bureaucracy
An organizational system with standardised procedures and rules
Flexible structures
Are not based on the traditional hierarchical organization of human resources. Instead, such structures enable a business to adapt its human resources when there is a need to respond to rapid change.
Line Authority
Authority that entitles a manager to direct the work of an employee
EXPLAIN HOW OUTSOURCING CAN CREATE AGILE, VIRTUAL ORGANIZATIONS, ALONG WITH IT'S PROS AND CONS
BY RETAINING CERTAIN KEY FUNCTIONS WHILE HAVING OTHER COMPANIES TAKE FULL RESPONSIBILITY FOR ACCOMPLISHING OTHER FUNCTIONS NECESSARY TO PROVIDE THE PRODUCT OR SERVICES OF THE HOST ORGANIZATION. TOTAL CONTROL VS PARTIAL CONTROL
Informal groups
Consist of people at work who have formed their own associations based on friendship and/or common interest.
Process Production
Continuous flow or process production
Handy's Shamrock organization: Core workers
Core managerial and technical staff must be offered full-time, permanent contracts with competitive salaries and benefits. These workers are central to the survival and growth of the organisation. In return for high rewards they are expected to work long hours when needed. As core workers are expensive, their numbers are being reduced in most organisations.
Barrier to Change
Culture is a liability when the shared values don't agree with those that further the organization's effectiveness.
Divisional organization structure
Decentralized structure, organized by criteria such as market or industry, that places responsibility for all business functions on the executives for the division. The divisions report to the CEO.
Decentralization
Decision-making powers are passed down the organization to empower subordinates and regional/product managers
DOWNSIZING
ELIMINATING THE NUMBER OF EMPLOYEES, ESPECIALLY MIDDLE MANAGEMENT.
SWOT Analysis
Examination of the strengths, weaknesses, opportunities, and threats facing an organization. Strengths and weaknesses are internal factors that can be controlled by the organization; opportunities and threats are external factors that may impact an organization's plans.
EXTERNAL INTERFACE BOUNDARIES
FORMAL AND INFORMAL RULES, LOCATIONS AND PROTOCOL THAT SEPARATE AND/OR DICTATE THE INTERACTION BETWEEN MEMBERS OF AN ORG AND THOSE OUTSIDE THE ORG; CUSTOMER, SUPPLIES, PARTNERS, REGULATORS, ASSOCIATIONS AND COMPETITORS.
MATRIX ORGANIZATION
FUNCTIONAL AND STAFF PERSONNEL ARE ASSIGNED TO BOTH A BASIC FUNCTIONAL AREA AND A PRODUCT OR PRODUCT MANAGER. PROVIDES DUAL CHANNELS OF AUTHORITY, PERFORMANCE RESPONSIBILITY, EVALUATION AND CONTROL.
Handy's Shamrock organization: Flexible workers
Flexible workers on temporary and part-time contracts, who are called on when the situation demands their labour. As the organisation demonstrates little concern or loyalty towards these workers, they often respond in kind. These workers are most likely to to lose their job in an economic downturn.
What is the purpose of an organizational structure and what are the most common types of organizational structures?
Framework that coordinates activities between business functions and facilitates the flow of communication. The most common structures are functional, product-based, geographic, divisional, matrix, and seamless.
Customer Departmentalization
Grouping activities by customer
Functional Departmentalization
Grouping activities by functions performed
Product Departmentalization
Grouping activities by major product areas
Geographical Departmentalization
Grouping activities on the basis of geography or territory
Process Departmentalization
Grouping activities on the basis of work or customer flow
BUSINESS PROCESS OUTSOURCING
HAVING AN OUTSIDE COMPANY MANAGE NUMEROUS ROUTINE BUSINESS MANAGEMENT ACTIVITIES PREVIOUSLY DONE BY INSIDE EMPLOYEES; SUCH AS SUPPLY PROCUREMENT, FINANCE AND ACCOUNTING, COSTUMER CARE, SUPPLY CHAIN AND LOGISTICS, ENGINEERING, R & D, AND SALES.
Departmentalization
How jobs are grouped together
Formalization
How standardized an organization's jobs are and the extend to which employee behavior is guided by rules and procedures
Why is a matrix organization structure advantageous?
It encourages communication and cooperation. It also requires a high level of trust and communication from employees at all levels to ensure that contradictory instructions are minimized.
Centralization
Keeping all of the important decision-making powers within head office or the centre of the organization
GEOGRAPHIC BOUNDARIES
LIMITATIONS ON INTERACTION AND CONTACT BETWEEN PEOPLE IN A COMPANY BASED ON BEING AT DIFFERENT PHYSICAL LOCATIONS DOMESTICALLY AND GLOBALLY.
VERTICAL BOUNDARIES
LIMITATIONS ON INTERACTION BETWEEN OPERATIONS AND MANAGEMENT PERSONNEL; BETWEEN DIFFERENT LEVELS OF MANAGEMENT AND DIFFERENT ORGANIZATIONAL PARTS LIKE CORPORATE AND DIVISIONAL LEVELS.
Mass Production
Large-batch manufacturing
Subcultures
Minicultures within an organization, typically defined by department designations and geographical separation
Large Organization
More specialization, departmentalization, centralization, and regulations than small organizations
OUTSOURCING
OBTAINING WORK PREVIOUSLY DONE BY EMPLOYEES INSIDE A COMPANY FROM SOURCES OUTSIDE THE COMPANY.
HORIZONTAL BOUNDARIES
ONE DIVISION IS SEPARATE FROM ANOTHER - BETWEEN DIFFERENT DEPARTMENTS THERE ARE RULES OF COMMUNICATION, ACCESS AND DEALING WITH PEOPLE.
LEARNING ORGANIZATION
ORGANIZATION STRUCTURED AROUND THE IDEA THAT IT SHOULD BE SET UP TO ENABLE LEARNING, TO SHARE KNOWLEDGE, TO SEEK KNOWLEDGE AND TO CREATE NEW KNOWLEDGE. IT MOVES INTO NEW MARKETS TO LEARN ABOUT THEM RATHER THAN TO SIMPLY EXPLOIT IT OR BRAND IT.
AMBIDEXTROUS ORGANIZATION
ORGANIZATION WITH A LACK OF STRUCTURE WHEREIN KNOWLEDGE AND GETTING IT TO THE RIGHT PLACE QUICKLY ARE THE KEY REASONS FOR THE ORGANIZATION.
BOUNDARYLESS ORGANIZATION
ORGANIZATIONAL STRUCTURE THAT ALLOWS PEOPLE TO INTERFACE WITH OTHERS THROUGHOUT THE ORG WITHOUT NEED TO WAIT FOR A HIERARCHY TO REGULATE THAT INTERFACE ACROSS FUNCTIONAL BUSINESS AND GEOGRAPHIC BOUNDARIES.
EXPLAIN WHY ORGS OF THE FUTURE NEED TO BE AMBIDEXTROUS LEARNING ORGS.
ORGANIZATIONS THAT SHARE KNOWLEDGE AND ENABLE LEARNING WITHIN AND ACROSS ORGANIZATIONS, AND NURTURE INFORMAL RELATIONSHIPS WITHIN AND OUTSIDE THE ORGANIZATION WILL BE ABLE TO FOSTER OPPORTUNITIES TO BE AT THE FOREFRONT OF CREATING NEW KNOWLEDGE.
SIMPLE ORGANIZATION STRUCTURE
OWNER/MANAGER HAS CONTROL BUT AS IT GROWS CAN BECOME STRETCHED THIN AND NOT ALLOWED TO GROW STRATEGICALLY.
Seamless organization structure
Organization in which horizontal networks connect people, and functions enhance creativity and communication.
Matrix organization structure
Organizational structure in which employees report to two managers: one is responsible for a product line, and the other is responsible for a functional area such as marketing or accounting.
Geographic organization structure
Organizational structure that is decentralized, that is organized by regions, and that places responsibility for all business functions in the executives for the regions. The regions report to the CEO.
Functional organization structure
Organizational structure that is formal, traditional, and pyramid-shaped. Communication moves vertically between levels. Each functional area reports to the CEO. Appropriate for businesses with a single product line where specialization is an advantage.
Handy's Shamrock organization: Outsourced work
Outsourced functions by independent providers, who may once have been employed by the company. Also known as the 'contractual fringe', these workers provide specific services that do not have to be kept within the core. These may include payroll services, transport, catering and IT.
Both PEST and Porter's 5 Forces are used for external assessment. What is the difference in focus between the two?
PEST analysis provides a guide for scanning the general business environment while Porter's 5 Forces hones in on issues specific to the industry in which the organization operates.
Delegation
Passing *authority* down the organizational hierarchy
RESTRUCTURING
REORGANIZING AND ORGANIZATIONAL STRUCTURE WITH THE INTENT OF EMPHASIZING AND ENABLING ACTIVITIES MOST CRITICAL TO A FIRM'S STRATEGY TO FUNCTION AT MAXIMUM EFFECTIVENESS.
Span of control
Refers to the number of subordinates that are controlled by a manager; i.e., the number of people who are *directly* accountable to the manager
Rituals
Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable. Like a chant or an affirmation
What is the difference between Investiture and Divestiture socialization?
Socialization that assumes the qualities and qualification as necessary ingredient for job success vs. striping one of them.
What is the difference between Individual and Collective socialization?
Socialized individually or Socialized as a group
Barriers to Diversity
Strong culture that condones prejudice, supports bias, or becomes insensitive to people who are different can even undermine formal corporate diversity policies.
Barriers to Acquisitions and Mergers
Strong cultures that undermine successful acquisition and merger decisions between organizations.
Unity of Command
Structure in which employee reports to only one manager (Henry Faior)
Pre arrival stage
The period of learning in the socialization process that occurs before a new employee joins the organization.
Centralization
The degree to which decision making takes place at upper levels of the organization
Innovation and risk taking
The degree to which employees are encouraged to be innovative and take risks.
Attention to detail
The degree to which employees are expected to exhibit precision, analysis, and attention to detail.
Decentralization
The degree to which lower-level managers provide input or actually make decisions
People orientation
The degree to which management decisions take into consideration the effect of outcomes on people within the organization.
Outcome orientation
The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.
Stability
The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
Aggressiveness
The degree to which people are aggressive and competitive rather than easy going.
Team orientation
The degree to which work activities are organized around teams rather than individuals.
Organizational chart
The diagrammatic representation of a firm's formal organization structure.
Organizing
The function of management that creates the organization's structure
Organizational structure
The internal, formal framework of a business that shows the way in which management is organised and linked together and how authority is passed through he organization
Chain of Command
The line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom
Span of Control
The number of employees a manager can efficiently and effectively supervise
Accountability
The obligation of an individual to account for his or her activities and to disclose results ion a transparent way
Unit Production
The production of items in units or small batches
Workplace Spirituality
The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community.
Delayering
The removal of one or more of the levels of hierarchy from an organisational structure
Authority
The rights inherent in a managerial position to give orders and expect the orders to be obeyed
Metamorphosis Stage
The stage in the socialization process in which a new employee changes and adjusts to the job, work group, and organization.
Encounter Stage
The stage in the socialization process in which new employees sees what the organization is really like and confronts the possibility that expectations and reality may diverge
What is the difference between Fixed and Variable socialization?
The standard standardized stages of transition vs a promotion system that does is not advanced to the next stage until one is ready
Chain of command
This is the route through which authority is passed down through an organisation - from the chief executive and the board of directors
How a *matrix structure* functions:
This method is task- or project-orientated. Instead of highlighting the role or status of individuals it gathers a team of specialists with the object of completing a task or project successfully. Emphasis is placed on an individual's ability to contribute to the team rather than their position in the hierarchy.
Top Management
Through words and behavior, senior executives establish norms that filter through the organization about, for instance, whether risk taking is desirable, how much freedom managers give employees, what is appropriate dress, and what actions earn pay raises, promotions, and other rewards.
What is the goal of employee attitude assessment?
To address issues that are affecting morale and productivity in order to improve productivity
organizational chart
a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations
virtual structure
a company outside a company that is created specifically to respond to an exceptional market opportunity that is often temporary
hierarchy of authority (chain of command)
a control mechanism for making sure the right people do the right things at the right time
market culture
a culture with a strong external focus and values stability and control
adhocracy culture
a culture with an external focus and values flexibility
clan culture
a culture with an internal focus and values flexibility rather than stability and control
hierarchy culture
a culture with an internal focus and values stability and control over flexibility
boundaryless organization
a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; collaborators may include not only coworkers but also suppliers, customers, and even competitors
conglomerate
a form of organizational diversification in which an organization (usually a very large, multinational one) adds an entirely unrelated business or product to its organizational design
offshoring
a form of outsourcing that involves relocating business functions and processes to another country
organizational structure
a formal system of task and reporting relationships that coordinates and motivate an organization's members so that they can work together to achieve the organization's goals
story
a narrative based on true events, which is repeated, and sometimes embellished upon, to emphasize a particular value
organizational life cycle
a natural sequence of stages - birth, youth, midlife, and maturity
hero
a person whose accomplishments embody the values of the organization
organization
a system of consciously coordinated activities or forces of two or more people
organizational culture (corporate culture)
a system of shared beliefs and values that develops within an organization and guides the behavior of its members
organization
a systematic grouping of individuals which have been brought together to accomplish a common goal
strategic alliance
a type of organizational design in which two or more separate companies combine forces to develop and operate a specific business.
mutual service consortia
a type of strategic alliance in which two similar companies from the same or similar industries pool their resources to receive a benefit that would be too difficult or expensive for either to obtain alone
spinoff
an entirely new company that is separate from the original parent organization, one with its own identity, a new board of directors, and a different management team.
organic organization
an internal organizational structure that changes frequently, making it likely that people will have to alter the nature of the jobs they perform over the years * degree of job specialization possible is very low, a broad knowledge of many different jobs is required. * very little authority exercised from the top, self-control expected.
symbol
an object, act, quality, or event that conveys meaning to others
boundaryless organization
an organization in which chains of command are eliminated, spans of control are eliminated, spans of control are unlimited, and rigid departments give way to empowered teams.
virtual organization
an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections
tall organizational structure
an organizational hierarchy with many layers in which managers have a narrow span of control
informal structures
are laid-back and undefined; involve employees completing tasks which may not always fit their job description; normally found in smaller businesses with fewer employees
organizational structures
arrange and group jobs based on specific tasks in order to enhance efficiency; increase the effectiveness of communication and reporting
formal structures
clearly defined and organized; can be found in any size business
matrix organization
combines the elements of functional and product-based departmentalization creating a dual chain of command; employees have at least two bosses; authority is shared between two supervisors; involves regular communication
these are the 4 common elements of organizations
common purpose, coordinated effort, division of labor, hierarchy or authority
divisional structure
composed of self-contained units or divisions; builds on product departmentalization; creates divisions which are self-sufficient within given limits; constructs divisions which are run by division managers or supervisors
systematic structures
define the various roles of members; set limits on employee work behavior; create rules and regulations; vary widely from organization to organization; adapt to the environment in which an organization is located
geographic departmentalization
divides activities into segments based on location; mainly used when an organization's customers are spread over a large geographic area
product departmentalization
divides the organization by the products or services it produces and then subdivides each department by its function; works well for companies with multiple product lines
directors
elected by the shareholders of a company to run the business on their behalf; also known as executives
middle managers
employees who manage other managers; responsible for establishing and achieving the goals of their specific department or region set by top management
operative employees
make up the base level of the pyramid; produce an organization's goods and services; generally do not manage or oversee the work of other employees
accountability
managers must report and justify work results to the managers above them
bureaucracy
the official administrative and formal rules of an organization that govern business activity
top management
sets an organization's goals and objectives; develops methods for achieving goals and objectives; is the head of the organization
functional authority
signifies the rights over individuals outside of an individual's specific division; breaks the chain of command
outsourcing
the act of finding external people or businesses to carry out non-core functions of a business, such as cleaning and ICT maintenance
rites & rituals
the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life
Contingency approach to organizational design
the approach that recognizes that no one approach to organizational design is best, but that the best design is the one that best fits with the existing environmental conditions
division of labor
the arrangement of having discrete parts of a task done by different people
simple structure
the authority is centralized in a single person, a flat hierarchy, few rules, and low work specialization
vertical hierarchy
the chain of command (who reports to whom) and the official communication network (who talks to whom)
coordinated effort
the coordination of individual efforts into a group or organizationwide effort
organizational chart
the diagrammatic representation of a firm's formal organizational structure
horizontal specialization
the different jobs or work specializations that appear to the left and right on each level of the hierarchy
hierarchy of authority
the distinction between members of organizations with respect to the degree of authority they have; higher positions in an organization chart reflect higher degrees of formal authority.
Contingency factors
the effects from an organization adopting a particular strategy * Size - volume of work performed by an organization * Innovation - the introduction of new processes in an organization within a particular period of time * Diversification - refers to the range of products an organization produces * Geographic diversity - the degree to which a company finds it necessary to have operations spread out over different locations
accountability
the extent to which a person is held responsible for the success or failure of a task
matrix structure
the flexible organization of employees from different departments within an organization temporarily working together on a particular project
chain of command
the formal line of authority, shown in a firm's organizational chart, through which orders are passed down in an organization
departmentalization
the grouping of individuals into departments based on work functions, product or service, target market, geographic territory and process used to create products
line authority
the most straightforward form of authority; gives the supervisor the right to direct the work of his or her employees without consulting others
birth stage
the nonbureaucratic state in which the organization an created
span of control
the number of employees a supervisor can direct; varies from supervisor to supervisor
span of control
the number of subordinates in an organization who are supervised by managers.
span of control
the number of subordinates that are controlled by a manager, i.e the number of people who are directly accountable to the manager
enacted values
these are the type of values which represent the values and norms actually exhibited in the organization
espoused values
these are the type of values which represent the values and norms actually exhibited in the organization
line managers
these managers have authority to make decisions and usually have people reporting to them
staff personnel
these people have authority functions including providing advice, recommendations, and research to line managers
common purpose
this is what unifies employees or members and gives everyone an understanding of the organization's reason for being
centralized authority
this is when important decisions are made by higher-level managers
decentralized authority
this is when important decisions are made by middle-level and supervisor-level managers
fit perspective
this perspective assumes that an organization's culture must align, or fit, with its business or strategic context
adaptive perspective
this perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes
strength perspective
this perspective assumes that the strength of a corporate culture is related to a firm's long-term financial performance
span of control (span of management)
this refers to the number of people reporting directly to a given manager
authority
this refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources
for-profit organizations
those formed to make money (profits) by offering products or services
nonprofit organizations
those formed to offer services to some clients, not to make a profit (hospitals, colleges)
mutual-benefit organizations
those that are voluntary collectives whose purpose is to advance members' interests (unions, trade associations)
centralized structures
when the majority of decision-making is done by a very small number of people (usually senior managers) who hold onto decision-making authority and responsibility
hollow structure (network structure)
when the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster
responsibility
who is in charge of whom, such as the Marketing Manager of an organization being responsible for the team of marketers
