Organizational Structure and Design Flashcards
Mechanistic
high degree of formalization and extensive departmentalization and provide little opportunity for decision making by low-level members of the organization
Organic
low degree of formalization and departmentalization and provide ample opportunity for decision making by all members of the organization
Organizational strategy
the plan a company uses to achieve their objectives
3 dimensions of organizational strategy
- cost minimization
- innovation strategy
- imitation strategy
Cost minimization strategy
encourages tightly controlled costs, no unnecessary innovation or marketing expenses, and strong price cutting, while selling a basic product through established channels
Innovation strategy
emphasizes the introduction of new products and services
Imitation strategy
uses both the organic and mechanistic structures to achieve its goals