Organizational Structure and Design Flashcards

1
Q

Mechanistic

A

high degree of formalization and extensive departmentalization and provide little opportunity for decision making by low-level members of the organization

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2
Q

Organic

A

low degree of formalization and departmentalization and provide ample opportunity for decision making by all members of the organization

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3
Q

Organizational strategy

A

the plan a company uses to achieve their objectives

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4
Q

3 dimensions of organizational strategy

A
  • cost minimization
    • innovation strategy
    • imitation strategy
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5
Q

Cost minimization strategy

A

encourages tightly controlled costs, no unnecessary innovation or marketing expenses, and strong price cutting, while selling a basic product through established channels

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6
Q

Innovation strategy

A

emphasizes the introduction of new products and services

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7
Q

Imitation strategy

A

uses both the organic and mechanistic structures to achieve its goals

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