Chapter 7 Flashcards
(15 cards)
Organizational structure
The manner is which an organization’s work is designed, as well as how departments, divisions and the overall organization are designed
Organizational Design
The process of constructing and adjusting and organizations structure to match its environment and achieve its goals
Differentiation (specialization)
The process of deciding how to divide the work in an organization
Integration (Departmentalization)
The process of coordinating the different parts of an organization
Hierarchy of Authority
The degree of vertical differentiation through reporting relationships and the span of control within the structure of the organization
Vertical Differentiation
The difference in authority and responsibility in the organizational hierarchy
Chain of command
An organizational chart showing employees positions and the flow of decision make power
Tall organizational structure
A structure with many layers of management
Flat organizational structure
A structure with few layers of management
Span of control
The number of people directly reporting to a manager
Horizontal differentiation
The degree of differentiation between organizational subunits, based on employees specialized knowledge, education or training
Department grouping
The way that differentiated jobs are grouped together into departments:
1) functional grouping
2) divisional grouping
3) hybrid grouping
Functional grouping
Groups of employees who preform similar functions or who have similar expertise i.e. finance
Divisional grouping
Group employees together based upon the organization’s main outputs or geography
Hybrid grouping
Combines characteristics of each of the divisional and functional groupings and is tailored to specific strategic needs
