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Designing Orgs.
Management Exam #2
| Term | Definition |
|---|---|
| Departmentalization Structures | Functional, Product, Customer, Geographic |
| Functional Departmentalization Structure | organizing company into departments based on the major business functions (+): specialization creates efficiency which lowers costs (-): lack of communication + coordination between departments low cost, low responsive |
| Product Departmentalization Structure | organizing company based on products sold (+): allows specialization in area of expertise, increased communication, helps analyze performance across product segments (-): expensive high costs, high responsiveness |
| Customer Departmentalization Structure | organized based by customers served; example is clothing retailers (+): more responsive, customizable, and flexible (-): expensive + duplication of resources high costs, high responsiveness |
| Geographic Departmentalization Structure | organized by geographic area (+): more responsive, customizable to specific region (-): higher costs, duplication of resources, difficult to coordinate across departments higher costs, high responsiveness |
| Span of Control | the number of people who report to a manager; narrow or wide |
| Narrow Span of Control + Characteristics | few people; creates tall organization characteristics; high control over employees, low employee autonomy, higher salary costs, low manager workload |
| Wide Span of Control + Characteristics | lots of people; creates flat organization Characteristics; low control over employees, high employee autonomy, low salary costs, high manager workload |
| Logic of Contingency Design | No single best design for all companies + situations; Burns & Stalker said to understand the amount of environmental uncertainty you face and let that guide your choices |
| Mechanistic Design + Characteristics | LIKE A WELL OILED MACHINE; best for slow, predictable, unchanging industries + compression innovation Characteristics; clear chain of command, vertical communication, centralized authority, low delegation, specialization |
| Organic Organizations | LIKE A ADAPTABLE TREE ; best for fast paced, dynamic, unpredictable industries Characteristics; thinking broadly + lateral communication, decentralized authority, high delegation, high generalization |
| Chain of Command | who is in control and who gets to tell others what to do |
| Unity of Command | report to ONE boss; helps prevent confusion in conflicting interests or commands |
| Line Authority | can command someone in the chain |
| Staff Authority | right to advise, but not command |
| Delegation of Authority | assignment of direct authority + responsibility to a subordinate to compare task for which the manager is normally responsible |
| Transfers during Delegation | 1. transfer full responsibility --> helps free up manager time + managers can have trouble giving up full responsibility 2. transfer full authority --> anything they may need 3. transfer of consequences --> subordinate will be responsible for results |
| Centralization of Authority | most authority is held at the upper levels of the org; standardization is important |
| Decentralization of Authority | most authority is spread out or at the lower levels of the org. ; standardization is unimportant - high delegation everywhere - faster decision making, higher satisfaction |
| Standardization | solving problems by consistently applying the same rules, procedures, and processes |
Created by:
Zetiris
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