Chapter 10 Flashcards
What is the deployment of organizational resources to achieve strategic goals?
Division of labor, lines of authority, coordination
How do you organize a vertical structure?
- Tasks assigned to individuals/departments. 2. Formal reporting relationships. 3. Design of systems to ensure effective coordination.
What is work specialization (organizing concepts)?
Degree to which organizational tasks are subdivided into individual jobs (division of labor).
What is chain of command (organizing concepts)?
Unbroken line of authority that links individuals in organization and specifies who reports to whom.
What is authority?
Vested in organizational positions, flows down vertical hierarchy, accepted by subordinates.
What are line departments?
Perform primary business tasks like sales and production.
What are staff departments?
Support line departments like marketing, research, and accounting.
What is line authority?
People in management positions have authority to direct and control immediate subordinates.
What is staff authority?
Narrower and includes right to advise, recommend, counsel staff specialists area of expertise.
What is span of management?
The number of employees reporting to a supervisor.
What is tall structure?
Have more levels and narrow span.
What is a flat structure?
Have a wide span and fewer levels.
What is centralization vs. decentralization?
Decision authority is located near the top of the organization vs decision authority is pushed downward to all levels.
What are the factors that influence centralization versus decentralization?
Change and uncertainty are usually associated with decentralization, strategic fit, crisis requires centralization.
What is the divisional approach?
Grouping based on organizational output (product program business).
What is the matrix approach?
Combines functional and divisional approaches. Improves coordination and information, dual lines of authority
What is the team approach?
Widespread trend, allows managers to delegate authority, flexible and responsive.
What is the virtual network structure?
Firm subcontracts most of its major functions to separate companies.
What is horizontal coordination?
Companies need for more flexibility than vertical structure, meets fast shifting environment and breaks down barriers between departments.
How does structure follow strategy?
Performance influenced by structure, strategic goals should drive structure and structure should facilitate strategic goals.
What is a task force?
Temporary team or committee form to solve a specific short-term problem involving several departments
What is responsibility and delegation?
Duty to perform a specific task and delegation is the transfer of authority and responsibility to those below them in the hierarchy.
What is a project manager?
Person responsible for coordinating activities of several departments for completion of specific project.
