Exam 2 - chapt 7
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
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
