MGMT Ch. 15 Flashcards
Designing Proper Organizational Structure
Work specialization Departmentalization Chain of Command Span of control centralization and decentralization formalization
Mechanistic Model
Tight control; extensive work specialization, high formalization, high centralization
Strategy Structure Relationship
.
Functional Departmentalization
Units grouped by basic business functions.
Matrix Organizations
Organizes by section and divided by product.
2 bosses = problem.
Superimposes one departmentalization on a second.
Contemporary Structures
simple structure: small business
-little formalization, low degree of departmentalization, wide spans of control
bureaucracy:
-routined operating, formalized rules and regulations
matrix structure:
-creates dual lines of authority and combines functional product departmentalization
Determinants and Outcomes of Org. Structures
Determinants:
- strategy
- size
- technology
- environment
Outcomes:
mixture of organic and mechanistic strategies to meet the needs of the industry
Organic Model
A loose structure; low specialization, low formalization, decentralized.
Open Door Policy
Can walk into different managers.
What type of strategy does Cost minimization use?
Mechanistic
What type of strategy does Imitation use?
Mechanistic and Organic
What type of strategy does Innovation use?
Organic
Market Leader
Company that is first in to a market.
Market Follower
Company with imitation strategy.
Product Departmentalization
Units grouped by product or customer lines or groups of products or customers.