Org Structure Flashcards
(20 cards)
def organizational structure`
the type of framework a company uses to distinguish power, authority, roles, responsibility and communication channels for an org
All orgs have an org structure
even if its not a good one
6 Key Elements of Org Structure
- Work Specialization 2. Departmentalization 3. Chain of Command 4. Span of Control 5. Centralization 6. Formalization
def work specialization
6KOSE,basically division of labor, to what degree is the work divided into seperate jobs. You want enough work specialization to make ppl experts, but not too much and turn them into robots
def departmentalization
6KOSEthe basis by which jobs are grouped together so that their common tasks can be coordinated (can be by priduct, function, grography, process, or customer)
What are the 5 ways of departmentalizing?
Function (mktg, engineering, sales, etc), Product, Geograqphy, Process (r&D, customer acquisition, order fulfillment), Customer (different markets)
def chain of command
6KOSE, clarifies who reports to who,
def unity of command principle
a person whould only be accountable to one superior
def span of control
6KOSE, the number of employees a managers is expected to direct, can have wider span if employees are competent
def centralization
6KOSE, how much of the decision making is concentrated at one point in the org
def formalization
6KOSE, degree to which jobs are standardized within an orgainzation
3 common org designs
1, Simple/Flat org Structure 2. Bureaucracy 3. The matrix structure
def simple/flat org designs
3COD, simple/flat org designs have a low degree of departmentalization and wide spans of control, authority centralized in one person, not very formal, fast decisions,best for small firms
def bureaucracy
3COD, a formal system of standardization and routine, rules run the show, narrow span of contrl, decision making follows the chain of command. good for efficiency, bad for creativity
def matrix structure
3COD, reporting relationships set up as a grid, you report to two ppl (functonal area and product area) dual chain of command, allows of refficient sharing of resources
def virtual orgainization
a small core organization that outsources major business functions, super flexible
def boundaryless organization
no chain of command, limitless span of control, departments become teams, family grocery store anaylogy; removed vertical and horizontal (functionl group)boundaries
def downsizing
a systematic effort to make an org leaner by selling off/closing units; bad for employees
3 strategies for orgs
innovation strategy, cost-minimization strategy, imitation strategy
determinants of org structure (why they differ)
org strategy, org size, technology, environment (inc. level of gworth, volatility, and complexity)
