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Century 2030-9

Organization Structure Framework that defines the boundries of the formal organization and within which the organization operates. p.179
Organization Growth has Three Stages. 1. Craft or Family Stage. 2. Entrepreneurial Stage.3. Professional Management Stage. p.179
First Stage: Characterize the "Craft or Family Stage". 1. Absence of formal policies, objectives, and structure. 2. Operations generally center on one individual and one functional area. p179
Second stage: Characterize the "Entrepreneurial Stage". 1. Organization grows first at an incresaing rate, and then a decreasing rate.2. An atmosphere of optimism pervades the entire organization as sales and profits rise rapidly. p.179
Third stage: Characterize the "Professional Management Stage". 1. The entrepreneur has been replaced by or evolved into a Professionsl Manager.Through 'Planning', 'Organizing', 'Staffing','Motivating', and 'Controlling'.2. Profits are realized more from internal efficiency and less from the external market. p179
How it the Third Stage characterized? At the Third Stage the organization beomes characterized by written policies, procedures, and plans. p.179
As the organization moves through the 'Craft Stage' and into the 'Entreprenurial Stage'; what critical organizational developement must occur the growing organization must establish an appropriate "Structure" that allows the existing organization to adapt to change in its enviornment. p. 179-180
List four factors affecting Organizational Structure Strategy, Size, Enviornment, and Technology p.180
Mechanistic Systems Ogranizationa systems characterized by a rigid delination of functional duties, precise job discriptions, ficed authority and responsibility, and a well developed organizational hierarchy. Information filters UP and instructions filter DOWN. p.181
Organic Systems Ogranizationa systems characterized by less formal job descriptions greater emphasis on adaptability, more participation, and less fixed authority. p181
The best structure for a given organization is: "CONTINGENT" on the organizations enviorment. p. 182
Outsourcing The practice of subcontracting certain work functions to an independent outside source. p.183
Contingency (Situational) Approach to Organizational structure States that the most appropriate structure depends on technologyused, the rate of enviornmental change, and other dynamic forces. p.184
Departmentalization Grouping jobs into related work units. p.185
Functional Departmentalization Defining organizational units in terms of the nature of the workto be performed. p. 185
Product Deparmenatlization Grouping all activities necessary to produce and market a product or service under onw manager. p.186
Geographic Departmentalization Defining organizational units by territories.p. 186
Customer Departmentalization Defining organizational units in terms of customers served. p.186
Hybrid Departmentalization Occurs when an organization simulaneously uses more than one type of departmentalization. p.187
Line Structure Organization structure with direct vertical lines between the different levels of the organization. p.188
Line and Staff Structure Organizational structure that results when staff and specialists are added to the line organization. p.188
Staff Functions Functions that are aadvisory and supportive in nature; designed to contribute to the efficiency and maintenance of the organization. p.188
Line Functions Functions and activities directly involved in producing and marketing the organization's goods or services. p.188
Matrix Structure Hybrid organization structure in which individuals fro different functional areas are assinged to work on a specific project or task. p. 189
Horizontal Structure Consits of two groups. One group is composed of senior management who are responsible for atrategic decisions and policies. the second group is composed of empowered employees wowrking together in different process teams. p.190
Virtual Structure Temporary network of independent companies - suppliers, customers, and even rivals - linked by information technology to share skills, costs, and access one another's markets. p.192
Flat structure Organization with few levels and relatively large spans of management at each level.
Tall Structure Organization with many levels and relatively small spans of management. p.193
Committee Organizationstructure in which a group of people are formally appointed, organized and superimposed on the line, line and staff, or matriz structure to consider or decide certain matters. p.195
Board of Directors Carefully selected committee that reviews major policy and strategy decisions proposed vy top management. p.195
Created by: call0019
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