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Org Structures
Organizational Structures
| Term | Definition |
|---|---|
| Organization | a systematic grouping of individuals which have been brought together to accomplish a common goal |
| Systematic Structures | define the various roles of members; set limits on employee work behavior; create rules and regulations; vary widely from organization to organization; adapt to the environment in which an organization is located |
| Operative Employees | make up the base level of the pyramid; produce an organization’s goods and services; generally do not manage or oversee the work of other employees |
| Supervisors | part of an organization’s management team; oversee the work of operative employees; are the only managers who do not manage other managers; considered first-level managers |
| Middle Managers | employees who manage other managers; responsible for establishing and achieving the goals of their specific department or region set by top management |
| Top Management | sets an organization’s goals and objectives; develops methods for achieving goals and objectives; is the head of the organization |
| The Management Process | refers to accomplishing goals and objectives effectively and efficiently; involves using your resources competently; always has an end goal of achievement; accomplished through a specific organizational structure |
| Organizational Structures | arrange and group jobs based on specific tasks in order to enhance efficiency; increase the effectiveness of communication and reporting |
| Informal Structures | are laid-back and undefined; involve employees completing tasks which may not always fit their job description; normally found in smaller businesses with fewer employees |
| Formal Structures | clearly defined and organized; can be found in any size business |
| Work Specialization | occurs when a job is broken down into a number of steps which are each completed by a different individual |
| Span of Control | the number of employees a supervisor can direct; varies from supervisor to supervisor |
| Chain of Command | the principle in which an employee should have only one supervisor to whom he or she is responsible; decreases conflicting demands and priorities |
| Authority | refers to the rights of a supervisory position to give orders; one person’s position over another |
| Line Authority | the most straightforward form of authority; gives the supervisor the right to direct the work of his or her employees without consulting others |
| Staff Authority | supports line authority; allows others to advise, service and assist the supervisor if needed; allows for input and suggestions from additional staff members, but does not guarantee implementation |
| Functional Authority | signifies the rights over individuals outside of an individual’s specific division; breaks the chain of command |
| Centralization | occurs when only a select few people at the top of an organization make the decisions |
| Decentralization | occurs when decisions are made by the individuals who are the closest to the problem; more conducive to making changes in a process |
| Departmentalization | the grouping of individuals into departments based on work functions, product or service, target market, geographic territory and process used to create products |
| Functional Departmentalization | groups activities with similar functions by units or departments; can be used in all types of organizations; reflects the purpose of the company |
| Product Departmentalization | divides the organization by the products or services it produces and then subdivides each department by its function; works well for companies with multiple product lines |
| Target Market Departmentalization | groups activities around common customer categories; uses the assumption that customers in each department have a common set of problems and needs can be met by having specialists for each |
| Geographic Departmentalization | divides activities into segments based on location; mainly used when an organization’s customers are spread over a large geographic area |
| Process Departmentalization | groups activities based on work or customer flow; provides a basis for the homogeneous categorizing of activities |
| Simple Structure | non-elaborate structure; has little formalization; has a centralized authority |
| Functional Structure | expansion of functional departmentalization; groups employees with similar and related occupational specialties; used as a framework for an entire company |
| Divisional Structure | composed of self-contained units or divisions; builds on product departmentalization; creates divisions which are self-sufficient within given limits; constructs divisions which are run by division managers or supervisors |
| Matrix Organization | combines the elements of functional and product-based departmentalization creating a dual chain of command; employees have at least two bosses; authority is shared between two supervisors; involves regular communication |
| Team-based Structure | consists entirely of work groups and teams which perform an organization’s work; allows team members to have authority to make the decisions which will affect them; has no chain-of-command |
| Boundaryless Organization | not defined or limited by boundaries or categories imposed by a traditional structure; blurs boundaries surrounding an organization by increasing its interdependence with its environment |
| Learning Organizations | have developed a capacity to continuously adapt and change because members take an active role in identifying and resolving work-place issues; employees must collaborate on work activities throughout the organization and have a team oriented work ethic |
Created by:
DrTeague
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