Chapter 12-Implementing Strategy Through Organization Flashcards
Organizational Architecture
The totality of a firm’s organizational arrangements, including its formal organizational structure, control systems, incentive systems, organizational culture, organizational processes, and human capital
Organizational Structure
The combination of the location of decision-making responsibilities, the formal division of the organization into subunits, and the establishment of integrating mechanisms to coordinate the activities of the subunits
Controls
The metrics used to measure the performance of subunits and make judgments about how well managers are running them.
Incentives
The devices used to encourage desired employee behavior.
Organizational Processes
The manner in which decisions are made and work is performed within the organization
Organizational Culture
The norms and value systems that are shared among the employees of an organization
People
The employees of an organization, as well as the strategy used to recruit, compensate, motivate, and retain those individuals; also refers to employees’ skills, values, and orientation.
Vertical Differentiation
The location of decision-making responsibilities within a structure, referring to centralization or decentralization, and also the number of layers in a hierarchy, referring to whether organization structure is tall or flat.
Horizontal Differentiation
The formal division of the organization into subunits.
Integrating Mechanisms
Processes and procedures used for coordination subunits.
Centralization
Structure in which decision-making authority is concentrated at a high level in the management hierarchy.
Decentralization
Structure in which decision-making authority is distributed to lower-level managers or other employees.
Autonomous Subunit
A subunit that has all the resources and decision-making power required to run the operation on a day-to-day basis.
Tall Hierarchies
An organizational structure with many layers or management.
Flat Hierarchies
An organizational structure with very few layers of management.
Span Control
The number of a manager’s direct reports.
Influence Costs
The loss of efficiency that arises from deliberate information distortions for personal gain within an organization
Delayering
The process of reducing the number of levels in a management hierarchy
Functional Structure
The organizational structure is built upon the division of labor within the firm, with different functions focusing on different tasks.
Multi-divisional Structure
An organizational structure in which a firm is divided into divisions, each of which is responsible for a distinct business area.
Matrix Structure
An organizational structure in which managers try to achieve tight coordination between functions, particularly R&D, production, and marketing.
Knowledge Network
A network for transmitting information within an organization that is based not on formal organization structure but on informal contacts between managers within an enterprise and on distributed-information systems.
Control
The process through which managers regulate the activities of individuals and units so that they are consistent with the goals and standards of the organization.
Goal
A desired future state that an organization attempts to realize.
Standard
A performance requirement that the organization is meant to attain on an ongoing basis.
Subgoal
An objective, the achievement of which helps the organization attain or exceed its major goals.
Personal Control
Control by personal contact with and direct supervision of subordinates.
Bureaucratic Control
Control through a formal system of written rules and procedures.
Output Controls
Goals that are set for units or individuals and monitoring performance against those goals.
Market Controls
The regulation of the behavior of individuals and units within an enterprise by setting up an internal market for valuable resources such as capital.
Peer Control
The pressure that employees exert on others within their team or work group to perform up to or in excess of the expectations of the organization.
Values
The ideas or shared assumptions about what a group believes to be good, right, and desirable.
Norms
Social rules and guidelines that prescribe the appropriate behavior in particular situations.
Performance Ambiguity
The difficulty of identifying with precision the reason for the high (or low) performance of a subunit such as a function or team.
