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organizational structure the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities
span of control the number of people directly reporting to the next level in hierarchy
centralization the degree to which formal decision authority is held by a small group of people, typically those at the top or the organizational hierarchy
formalization the degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms
functional structures a type of departmentalization that organizes employees around specific knowledge or other resources; usually poorer coordination in serving clients or developing products
divisional structure a type of departmentalization that groups employees around geographic areas, outputs (products/services), or clients
team-based structure a type of departmentalization built around self-directed teams that complete an entire piece of work
matrix structure a type of departmentalization that overlays two organizational forms in order to leverage the benefits of both; project based
organizational strategy the way the organization positions itself in its setting in relation to its stakeholders, given the organization's resources, capabilities, and mission
division of labor the subdivision of work into separate jobs assigned to different people
coordination mechanisms needed to ensure everyone works in concert
organizational design process of creating, selecting, or changing the organization's structure
organizational design - influential factors - external environment<br> - organizational strategy<br> - technology<br> - organizational size
flatter structure fewer layers of management; more direct reports per manager; wider span of control
taller structure more levels of management
decentralization dispersing decision power and authority throughout the organization
problems with formalization reduce organizational flexibility; employees may follow prescribes behaviors even when situation calls for a customized behavior; also a source of job dissatisfaction and stress
mechanistic structure narrow span of control and high degree of formalization and centralization
organic structure wide span of control, little formalization and decentralized decision making
departmentalization establishes the chain of command - the system of common supervision among positions and units within the organization; focuses people around common mental models or ways of thinking
when to use functional structure stable environment, small to medium sized, goals of efficiency, technical quality
when to use divisional structure unstable, uncertain environment, large organization, goals of product specialization, innovation
when to use matrix structure very uncertain, shifting environment, medium to large size, goals of product and functional specialization
functional structure a/d efficient use of resource, central decisions and directions, good coordination within functions but bad coordination between functions, slow responses, little innovation
matrix structure a/d communications, adaptation, innovation, knowledge sharing across groups. dual authority causes frustration and confusion, high conflict, time consuming, stressful, difficult to maintain power balance
divisional structure a/d accommodates growth, product/customer focus, high coordination between functions, duplication or resources, less top mgmt control, poor coordination across product lines
network structure a/d highly flexible, customer focus, less formal hierarchy, can be difficult to share knowledge between teams, lack of control from center, duplicated resources
Created by: thecrew
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