Chapter 14 (461-478) Flashcards
division of labor
the degree to which employees specialize
centralized organization
more power lies at the top of the hierarchy
decentralized organization
flatter structures where more power is spread out among lower levels of the organization
mechanistic organization
rigid, traditional centralized powers
organic organization
flexible, decentralized structures
what can influence business structure
business strategy external environment organizational size behavioral expectations production technology
how can business strategy influence business structure?
simple business designs use simple strategies
how can external environment influence business structure?
rapidly changing environments require more flexible structure
how can organizational size influence business structure?
larger firms have a greater hierarchy
how can behavioral expectations influence business structure?
if employees are expected to follow certain rules, there need to be more hierarchy
how can production technology influence business structure?
the fewer units a business produces, the flatter the structure
prebureaucratic structure
smaller organizations require more centralized power
bureaucratic structure
formal division of labor and hierarchy
functional structure
groups people with the same skills together
works well for organizations in a stable environment
divisional structure
collection of functions gathered around a geographical area, product, or market