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8 Cards in this Set
- Front
- Back
Organizational Structure |
Defines how job tasks are formally divided, grouped and coordinated. |
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Six key elements of oganizational structure |
- Work specialization: division of labour - Departmentalization: divide organization by functions/products/geographical elements - Chain of command: line of authority (unity of command = everyone has superior) - Span of control: wider span is more efficient - Centralization: top managers make decision - Decentralization: managers close to action make decisions - Formalization: degree to which jobs are standardized |
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Common organizational designs |
Simple structure, bureaucracy and matrix structure |
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The simple structure |
Low degree of departmentalization, wide spans of control, centralized authority, little formalizations (often young companies) Strengths: simple, fast, flexible inexpensive to operate, accountability is clear Weak: overload information at top, long decisionmaking process if large org. |
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The bureaucracy |
Highly routine operating tasks because of specialization, formalization, regulation, functional departments, centralized authority, narrow span of control, strong chain of command Strength: efficient and economies of scale Weak: no modification |
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The matrix structure |
Both functional and product departmentalization Strength: low number of specialists, pooling/sharing of specialized resources Weak: difficult coordination |
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New design options |
- The virtual organization - The boundaryless organization - The leaner organization |
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Why do structures differ? |
The mechanistic and organic model - Organizational strategy - Organization size - Technology - Environment |