Chapter 7 Flashcards
The degree to which decisionmaking authority is
concentrated at higher levels
in an organization.
Centralization
The extent to which policies, procedures, job descriptions,
and rules are written and explicitly articulated.
Formalization
Organizations with several layers of management between
frontline employees and the top level.
tall structures
Organizations with few layers,
often with large numbers of
employees reporting to a single
manager.
flat structures
Structures in which jobs are
grouped based on similarity in
functions.
functional structures
When departments represent
the unique products, services,
customers, or geographic
locations the company is serving.
divisional structures
Those structures that resemble a bureaucracy and are highly formalized and centralized.
mechanistic structures
Those structures that are
flexible and decentralized with
low levels of formalization
where communication lines are
more fluid and flexible.
organic structures
Key Takeaway 7.2
The degree to which a company is centralized and formalized, the number of
levels in the company hierarchy, and the type of departmentalization the
company uses are key elements of a company’s structure. These elements of
structure affect the degree to which the company is effective and innovative
as well as employee attitudes and behaviors at work. These elements come
together to create mechanistic and organic structures. Mechanistic
structures are rigid and bureaucratic and help companies achieve efficiency,
while organic structures are decentralized, flexible, and aid companies in
achieving innovativeness.
Organizations that cross a
traditional functional structure
with a product structure.
Specifically, employees
reporting to department
managers are also pooled
together to form project or
product teams.
matrix organizations
An organization that
eliminates traditional barriers
between departments as well
as barriers between the
organization and the external
environment.
Boundaryless organization
An organization where all the
nonessential functions are
outsourced.
modular
organization
A form of boundaryless design
where two or more companies
find an area of collaboration
and combine their efforts to
create a partnership that is
beneficial for all parties.
Strategic
alliances
One where acquiring
knowledge and changing
behavior as a result of the
newly acquired knowledge is
part of an organization’s
design
learning organization
Key Takeaway 7.3
The changing environment of organizations creates the need for newer
forms of organizing. Matrix structures are a cross between functional and
product-based divisional structures. They facilitate information flow and
reduce response time to customers but have challenges because each
employee reports to multiple managers. Boundaryless organizations blur
the boundaries between departments or the boundaries between the focal
organization and others in the environment. These organizations may take
the form of a modular organization, strategic alliance, or self-managing
teams. Learning organizations institutionalize experimentation and
benchmarking.
