BME 2102 Module 11- ORGANIZATIONAL STRUCTURE AND CULTURE Flashcards
defines how job tasks are formally divided, grouped, and coordinated
An organizational structure
the degree to which tasks in an organization are subdivided into separate jobs.
Work specialization or division of labor
the basis by which jobs in an organization are grouped together.
Departmentalization
the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.
Chain of command
the rights inherent in a managerial position to give orders and to expect the order to be obeyed. It is the right to decide and act (Hellriegel and Slocum)
Authority
the idea that a subordinate should have only one superior to whom he or she is directly responsible.
Unity of command
the number of subordinates a manager can efficiently and effectively direct. This is important because, to a large degree, it determines the number of levels and managers an organization has. All things being equal, the wider or larger the span, the more efficient the organization
Span of control
the degree to which decision making is concentrated at a single point in an organization. If top management makes the organization’s key decisions with little or no input from lower-level personnel, then the organization is centralized.
Centralization
In contrast, the more the lower-level personnel provide input or are actually given the discretion to make decision, the more decentralization there is.
Decentralization
refers to the degree to which jobs within the organization are standardized.
Formalization
refers to the degree to which jobs within the organization are standardized.
Formalization
when individuals turn relationships outside their formally assigned groups
Boundary spanning
the process of choosing and implementing a structural configuration for an organization.
Organizational design
a structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.
Simple structure
a structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.
Bureaucracy
involves grouping people according to their expertise or functions performed. Bureaucracies are almost always organized into functional departments.
Functional structure
functional activities are performed both centrally and in each separate division. It can be organized in one of four ways: by geographic area, by product or service, by customer, or by process.
Divisional structure
activities are organized according to different geographic area and branch facilities located in widely dispersed areas are similar and independent from other each other.
Divisional by geographic area
the arrangement of departments according to the products or service they provide
Divisional by product or services
grouping activities according to needs of major customer groups
Divisional by customer
activities are organized according to the way work is actually performed
Divisional by process
a structure that creates dual lines of authority and combines functional and product departmentalization.
The Matrix structure
a structure that has relatively few layers.
Flat organization Structure
the practice of having works or functions performed for them by other organizations
Outsourcing
a small, core organization that outsources major business functions. It is sometimes called the network, or modular, structure. It is highly centralized, with little or no departmentalization. Film-making organizations or studios are typical examples of this type of structure.
Virtual organization
a structure that replaces departments with empowered teams, and which eliminates horizontal boundaries and external barriers between customers and suppliers. Coca-Cola and McDonald’s are team-oriented global corporations. The removal of vertical barriers flattens the hierarchy and minimizes status and rank.
Team structure
a structure wherein executives are at the center, spreading their vision outward in rings grouped by function (managers, then specialists, then workers).
Circular structure
is a systematic effort to make an organizational leaner by closing locations, reducing staff, or selling off business units that don’t add value. It involves laying off of workers. This is one way of creating a lean, focused, and flexible organization. Some firms downsize to direct all their efforts toward their core competencies. Some companies do it to reduce bureaucracy and hasten decision making.
Downsizing
a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. It is generally synonymous with the bureaucracy.
Mechanistic model
a structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision-making.
Organic model
structure should follow strategy. If management makes a significant change in its organization’s strategy, the structure will need to be modified to accommodate and support this change
Strategy
a strategy that focuses on the introduction of new products and services.
Innovation strategy
minimization strategy – emphasizes tight cost controls, cutting of avoidable innovation or marketing expenses, and price cutting.
Cost
moving into new products or new markets only after their innovators have proven their viability
Imitation strategy
there is considerable evidence to support the idea that an organization’s size significantly affects its structure.
Organization size
the way in which an organization transfers its inputs into outputs. Numerous studies have been carried out on the technology-structure relationship. Routine tasks are associated with taller and more departmentalized structures. Routine technology is characterized
Technology
forces outside an organization that potentially affect the organization’s performance
Environment
the degree to which the environment can support growth.
Capacity
describes the degree of instability in the environment
Volatility
the degree of heterogeneity and concentration among environmental elements
Complexity
cultural factors that lead many organizations to have similar structures, especially those factors that might lead to adaptive consequences. These cultural factors act as guidelines for appropriate behavior.
Institutions
companies can be structured in a particular way just because that’s the way things have always been done
Simple inertia
copying other successful companies to look good to investors
Fads or trends
refers to a system of shared meaning held by members that distinguishes the organization from other organizations. It is a set of key characteristics that the organization values.
Organizational culture
The degree to which employees are encouraged to be innovative and take risks.
Innovation and risk taking
The degree to which employees are expected to exhibit precision, analysis, and attention to detail.
Attention to detail
The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.
Outcome orientation
The degree to which management decision take into consideration the effect of outcomes on people within the organization.
People orientation
The degree to which work activities are organized around teams rather than individuals
Team orientation
The degree to which people are aggressive and competitive rather than easygoing
Aggressiveness
The degree to which organizational activities emphasize maintaining the status quo in contrast to growth
Stability
expresses the core values that are shared by a majority of the organization’s members.
Dominant culture
the primary or dominant values that are accepted throughout the organization.
Core values
minicultures within an organization, typically defined by department designations and geographical separation.
Subcultures
refers to the shared perceptions organizational members have about their organization and work environment. This aspect of culture is like team spirit at the organizational level.
Organizational climate
is the shared concept of right and wrong behavior in the workplace that reflects the true values of the organization and shapes the ethical decision making of its members
The ethical work climate (EWC)
refers to practices that can be maintained over very long period of time because the tools or structures that support them are not damaged by the processes
Sustainability
Companies characterized by their open, unconventional, collaborative, vision-driven, and accelerating cultures are found to be
innovative companies
a condition that occurs when an organization takes on a life of its own, apart from any of its members, and acquires immortality
Institutionalization
emphasizes building on employee strengths, rewards more than it punishes, and emphasize individual vitality and growth.
A positive organizational culture
is the recognition that people need God. Organizations that support a spiritual culture recognize that people seek to find meaning and purpose in their work and desire to connect with other human beings as part of a community.
Workplace spirituality
