Chapter 15: Foundations of Organization Structure Flashcards Preview

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Flashcards in Chapter 15: Foundations of Organization Structure Deck (28)
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organizational structure

defines how job tasks are formally divided, grouped, and coordinated.


key element of org. structure: work specialization

also called the division of labor, describes the degree to which activities in the organization are divided into separate jobs

the essence is to divide a job into several steps, each completed by a separate individual


key element of org. structure: departmentalization

once jobs have been divided through work specialization, they must be grouped so common tasks can be coordinated. the basis by which jobs are grouped is called departmentalization

functions performed - product or service - geography - process: all ways you can departmentalize a job


key element of org. structure: chain of command

is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom



refers to the rights inherent in a managerial position to give orders and expect them to be obeyed


unity command

the idea that subordinates should have only one superior to whom he or she is directly responsible


span of control

describes the number of levels and managers in an organization. the span of control is determined by how many managers and levels there are to an organization. with fewer levels and managers, each level will contain more employees and the employee-manager ratio increases


key element of org. structure: centralization and decentralization

refers to the degree to which decision making is concentrated at a single point in the organization. in centralized organizations, top managers make all the decisions, and lower-level managers merely carry out their directives. in decentralized orgs, decision making is pushed down to the managers closest to the action or to workgroups


key element of org. structure: formalization

the degree to which jobs within an organization are standardized

the degree of formalization can vary widely between industries and organizations


key element of org. structure: boundary spanning

occurs when individuals form relationships with people outside their formally assigned groups


common organizational frameworks and structures: the simply structure

an organizational structure characterized by a low degree of departmentlaization, wide spans of control, authority centralized in a single person, and little formalization


common organizational frameworks and structures: beuracracy

is characterized by highly routine operating tasks achieved through specialization, strictly formalized rules and regulations, tasks grouped into units, centrolized authority, narrow spans of control, and decision making that follows the chain of command

weaknesses include obssessive following of rules


functional structure

an organizational structure that groups employees by their similar specialties, roles, or tasks


divisional structure

an organizational structure that groups employees into units by product, service, customer, or geographical market area


the matrix structure

an organizational structure that creates dual lines of authority and combines functional and product departmentalization


virtual structure

a small, core organization that outsources major business functions


team structure

seeks to eliminate the chain of command and replace departments with empowered teams. this structure removes vertical and horizontal boundaries in addition to breaking down external barriers between the company and its customers and suppliers


cicular structure

an organizational structure in which executives are at the center, spreading their vision outward in rings grouped by definition (managers, then speialists, then workers)


mechanistic model

a stucture characterized by extensive departmentalization, high formalization, a limited information network, and centralization


organic model

a structure that is flat, uses cross-hiearchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making


innovation strategy

a strategy that emphasizes the introduction of major new products and services


cost-minimzation strategy

a strategy that emphasizes tight costs controls, avoidance of unecessary innovation or marketing expenses, and price cutting


imitation strategy

a strategy that seeks to move into new products or new markets only after their viability has already been proven


what are the factors that determine an organization's size?

it size, technology, environment, and institutions



the way in which an organization transfers its inputs into outputs



forces outside an organization that potentially affect the organization's structure



cultural factos, especially those factors that might not lead to adaptiv ve consequences, that lead many organizations to have similar structures


major takeaways

you cannot generalize with stuctures - one size does not fit all

people dont select employers randomly, they are attracted to, are selcted by, and stay with organizations that suit their personal characteristics