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RIT OB CH 12
| Term | Definition |
|---|---|
| organizational structure | the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities |
| span of control | the number of people directly reporting to the next level in hierarchy |
| centralization | the degree to which formal decision authority is held by a small group of people, typically those at the top or the organizational hierarchy |
| formalization | the degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms |
| functional structures | a type of departmentalization that organizes employees around specific knowledge or other resources; usually poorer coordination in serving clients or developing products |
| divisional structure | a type of departmentalization that groups employees around geographic areas, outputs (products/services), or clients |
| team-based structure | a type of departmentalization built around self-directed teams that complete an entire piece of work |
| matrix structure | a type of departmentalization that overlays two organizational forms in order to leverage the benefits of both; project based |
| organizational strategy | the way the organization positions itself in its setting in relation to its stakeholders, given the organization's resources, capabilities, and mission |
| division of labor | the subdivision of work into separate jobs assigned to different people |
| coordination | mechanisms needed to ensure everyone works in concert |
| organizational design | process of creating, selecting, or changing the organization's structure |
| organizational design - influential factors | - external environment<br> - organizational strategy<br> - technology<br> - organizational size |
| flatter structure | fewer layers of management; more direct reports per manager; wider span of control |
| taller structure | more levels of management |
| decentralization | dispersing decision power and authority throughout the organization |
| problems with formalization | reduce organizational flexibility; employees may follow prescribes behaviors even when situation calls for a customized behavior; also a source of job dissatisfaction and stress |
| mechanistic structure | narrow span of control and high degree of formalization and centralization |
| organic structure | wide span of control, little formalization and decentralized decision making |
| departmentalization | establishes the chain of command - the system of common supervision among positions and units within the organization; focuses people around common mental models or ways of thinking |
| when to use functional structure | stable environment, small to medium sized, goals of efficiency, technical quality |
| when to use divisional structure | unstable, uncertain environment, large organization, goals of product specialization, innovation |
| when to use matrix structure | very uncertain, shifting environment, medium to large size, goals of product and functional specialization |
| functional structure a/d | efficient use of resource, central decisions and directions, good coordination within functions but bad coordination between functions, slow responses, little innovation |
| matrix structure a/d | communications, adaptation, innovation, knowledge sharing across groups. dual authority causes frustration and confusion, high conflict, time consuming, stressful, difficult to maintain power balance |
| divisional structure a/d | accommodates growth, product/customer focus, high coordination between functions, duplication or resources, less top mgmt control, poor coordination across product lines |
| network structure a/d | highly flexible, customer focus, less formal hierarchy, can be difficult to share knowledge between teams, lack of control from center, duplicated resources |
Created by:
thecrew
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