chapter 10 Flashcards
organization
a group of people working together to achieve a specific goal
organizational structure
a system that coordinates the people, tasks, and activities necessary to carry out a particular purpose
explain the impact of organizational structure on the organization
- goals would be difficult to achieve without organizational structure
- successful organizational structures improve the flow of communication between employees, establish clear responsibilities and reporting relationships, provide opportunities for company growth and expansion, and facilitate the successful completion of tasks and activities.
An organizational chart is:
a visual document that communicates how a company is organized
Main elements of an organizational structure: (10)
- work specialization
- authority
- span of control
- formalization
- centralization or decentralization
- chain of command
- departmentalization
- responsibility and delegation
work specialization
also known as division of labor, is the degree to which jobs are divided into specific tasks
departmentalization
the process of grouping people with related jobs duties, skills, and experiences into the same area within the overall organizational structure
chain of command
the flow of authority and power from the highest to the lowest levels of the organization
span of control
refers to the number of direct reports for whom managers are directly responsible
authority
the legitimate right given to managers to give orders and make decisions
responsibility
the personal obligation to perform present tasks and reach specified goals
delegation
the process of transferring authority and responsibility to others to carry out certain tasks and activities
centralization
refers to an organizational structure designed to give top-level managers the authority to make decisions on behalf of the entire company
decentralization
refers to an organizational structure designed to allow all employees to make decisions and recommend changes
formalization
the process of determining procedure, rules, and responsibilities for employees
traditional organizational structures are group into six (5) main types:
- simple structures
- functional structures
- divisional structures
- vertical structures
- horizontal structures
simple structures
a common organizational structure used in small businesses in which decision-making is centralized with the business owner
functional structure
groups employees according to the tasks they perform for the organization, such as marketing, finance, and human resources
divisional structure
sometimes called multidivisional structure, groups employees by products and services, by geographic regions, or by customers.
vertical structure
based on a chain of command in which leaders sit at the top of the hierarchy and pass down orders to lower-level workers.
horizontal structure
also known as flat structure, focuses on teamwork and collaboration to achieve collective goals
type of contemporary organizational structure
- matrix structure
- flatter structure
- flatarchies structure
- holacratic structure
- boundaryless structure
- virtual structure
matrix organizational structure (type of contemporary organizational structure)
a company structure in which reporting lines are set up as a grid, or matrix.
flatter structure (type of contemporary organizational structure)
company structure where some layers of management are removed but a degree of hierarchy remains
flatarchies (type of contemporary organizational structure)
type of organizational structure that share characteristics of hierarchies and flat organizations
holacratic organizational structure (type of contemporary organizational structure)
distributes decision making authority to self managed “boss-less” teams or “circles”.
boundaryless organizational structure (type of contemporary organizational structure)
removes borders across the organization to drive efficiency, innovation, and growth through the free flow of information
virtual organizational structure (type of contemporary organizational structure)
one in which employees are geographically spread and tend to communicate by phone, email, and the internet
discuss the factors that influence the type of organizational structures being implemented
- to make the right decisions, managers need to take the following factors into account:
- the environment
- strategy
- financial condition
- technology
- size
mechanistic model
formalized structure based on centralization and departmentalization
organic model
a less formalized structure based on decentralization and cross-functional teams
managers use these two methods for companies when organizing their structures and operations:
- differentiation
- integration
differentiation
the process by which organizations are broken down into divisions and departments
- each of which has its own power and autonomy
integration
the process by which different parts of the organization are drawn together to achieve a common goal