Exam 3 Flashcards
Organizational structure
vertical and horizontal configuration of departments, authority, and jobs within a company
organizational process
collection of activities that transforms inputs into outputs valued by customers
departmentalization
method of subsidizing work and workers into separate organizational units that take responsibility for completing particular tasks
methods of departmentalization
functional, product, customer, geographic, matrix
functional
typically young or small orgs –> units are responsible for particular business functions
product
units are responsible for producing particular products or services –> this can lead to the duplication
customer
units are responsible for particular categories of customers
geographic
units are responsible for doing business in particular geographic areas
geographic (expense)
more might be incurred to that you can better meet the needs of your customers and to cut down on the limitations that distances bring to communications
matrix
hybrid organizational structure
centralization
most of the authoriyt is located at the upper levels of the organization
Goals of Departmentalization
- Efficiency/ Avoiding Duplication
- Challenge of coordinating across product departments
standardization
solving problems by consistently applying the same rules, processes,
if standardization is important…
organizations may want to stay centralized
if standardization is NOT important
orgs may want to consider decentralization
standardization starts with
who gets hired and how they are trained ( so that they can be trusted in decision making)
organizational authority
the right to give commands, take action, and make decisions to achieve organizational objectives
chain of command
a vertical line of authority that clarifies reporting structure
line authority
right to command immediate subordinates in the chain of command
staff authority
right to advise others who are not subordinates in the chain of command
line function
contributes directly to creating or selling the company’s products
staff function
supports line activities, but does not contribute directly to creating or selling products
delegation of authority
assignment of authority and responsibility to a subordinate
mechanistic organizations
characterized by specific jobs and responsibilities
utilizes centralized authority and vertical communication
(structure)
organic organizations
characterized by broadly defined jobs and responsibilities
utilizes decentralized authority and horizontal communication
(processes)
reengineering
rethinking the fundamentals and redesigning the business processes so that there could be dramatic improvements
empowerment
passing the decision-making authority/responsibility from managers to workers
inter-organizational processes
either modular or virtual
modular orgs
outsource non core business activities to outside companies, suppliers, specialists, or consultants. It’s cost effective but does lead to a loss of control and possibly less of a competitive advantage
virtual orgs
part of a network or several companies/ individuals working together to solve customer problems or provide specific products. It allows for cost sharing but there is difficultly in controlling the quality of work
work teams
small number of people with complementary skills who are mutually accountable
advantages of teams
increase customer satisfaction
improve product and service quality
increase speed and efficiency in product development
increase job satisfaction
share the benefits of group decision making
disadvantages of teams
initial high turnover
social loafing
groupthink
member domination
social loafing
slacking, essentially team members withhold their efforts to perform their of the work