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Flashcards in chapter 10 Deck (16):

refers to formalized patterns of interactions linking

organizational structure


provides a means of balancing two conflicting forces: a need for the division of tasks into meaningful groupings, and the need to integrate such groupings in order to ensure efficiency and effectiveness



= an organizational form in which the owner–manager makes most of the decisions and controls activities, and the staff serves as an extension of the top executive.

Simple organizational structure


= an organizational form in which products, projects, or product markets are grouped internally. Each of the divisions, in turn, includes its own functional specialists who are typically organized into departments

Divisional organizational structure


is where the major functions of the firm are grouped internally

functional organizational structure


= an organizational form in which products, projects, or product market divisions are grouped into homogenous units. Highly diversified corporations may consist of dozens of different divisions.

Strategic business unit (SBU) structure


= an organizational form that is a variation of the divisional organizational structure in which the divisions have a high degree of autonomy both from other divisions and from corporate headquarters.

appropriate when the businesses in a corporation’s portfolio do not have much in common.

Holding company structure


= an organizational form in which there are multiple lines of authority and some individuals report to at least two managers. (project and functional who share responsibility)

Matrix organizational structure


(1) the type of strategy that is driving the firm’s foreign operations, (2) product diversity, and 3) the extent to which a firm is dependent on foreign sales

international operations


= a business organization that, from inception, seeks to derive significant advantage from the use of resources and the sale of outputs in multiple countries

Global start-up


= an organizational design in which firms bridge real differences in culture, function, and goals to find common ground that facilitates information sharing and other forms of cooperative behavior.

Barrier-free organization


= an organization in which nonvital functions are outsourced, which uses the knowledge and expertise of outside suppliers while retaining strategic control

Modular organization


= a continually evolving network of independent companies that are linked together to share skills, costs, and access to one another’s markets.

Virtual organization


= managers’ exploration of new opportunities and adjustment to volatile markets in order to avoid complacency.

. Adaptability


= managers’ clear sense of how value is being created in the short term and how activities are integrated and properly coordinated.



= organizational designs that attempt to simultaneously pursue modest, incremental innovations as well as more dramatic, breakthrough innovations.

Ambidextrous organizational designs