Innovative Firm - Words

Question 1

(De)centralization

Answer 1

Centralization is the degree to which decisions-making authority is kept at top levels of management. Decentralization is the degree to which decision-making authority is pushed down to lower levels of the firm.

Question 2

Ambidextrous organization

Answer 2

The ability of an organization to behave almost as two different kinds of companies at once. Different divisions of the firm may have different structure and control systems, enabling them to have different cultures and patterns of operations.

Question 3

Skunk Works

Answer 3

Skunk Works ® is a term that originated with a division of Lockheed Martin that was formed in June 1943 to quickly develop a jet fighter for the United State Army. It has evolved as skunk works to refer to more generally to new product development teams that operate nearly autonomously from the parent organization with considerable decentralization of authority and little bureaucracy.

Question 4

Organic

Answer 4

An organization structure characterized by a low degree of formalization and standardization. Employees may not have well-defined job responsibilities and operations may be characterized by a high degree of variations.

Question 5

Mechanistic

Answer 5

An organization structure characterized by a high degree of formalization and standardization, causing operations to be almost automatic or mechanical. – Part of the Car manufacturing

Question 6

Standardization

Answer 6

The degree to which activities are performed in a uniform matter.

Question 7

Formalization

Answer 7

The degree to which the firm utilizes rules, procedures and written documentation to structure the behavior of individuals or groups within the organization.