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MOB Chapter 7 Body

Each employee is held accountable to only one supervisor. Unity of Command
A clearly defined line of authority in the organization that includes all employees. Scalar Principle
Argues that a manager has authority only if subordinates choose to accept his or her commands. Acceptance Theory of Authority
Perform tasks that reflect the organization's primary goal and mission. Line Department
Include all those that provide specialized skills in support of line departments. They have an advisory relationship with line departments and typically include marketing, labor relations, research, accounting, and human resources. Staff Departments
Also called product structure, program structure, or self-contained unit structure. Divisional Structure
Consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems. Cross-functional Teams
Computer links that drop from the ceiling in SEI's open office environment. Pythons
Farming out certain activities such as manufacturing or credit processing, has become a significant trend. Outsourcing
Efficient use of resources; economies of scale. In-depth skill specialization and development. Top manager direction and control. Functional Structure Approach Advantages
Poor communication across functional departments. Slow response to external changes; lagging innovation. Decisions concentrated at top of hierarchy, creating delay. Functional Structure Approach Disadvantages
Fast response, flexibility in unstable environment unstable environment. Fosters concern for customer needs. Excellent coordination across functional departments. Divisional Structure Approach Advantages
Duplication of resources across divisions. Less technical depth and specialization. Poor coordination across divisions. Divisional Structure Approach Disadvantages
More efficient use of resources than single hierarchy. Flexibility, adaptability to changing environment. Interdisciplinary cooperation, expertise available to all divisions. Matrix Structural Approach Advantages
Frustration and confusion from dual chain of command. High conflict between two sides of the matrix. Many meetings, more discussion than action. Matrix Structural Approach Disadvantages
Reduced barriers among departments, increased compromise. Shorter response time, quicker decisions. Better morale, enthusiasm from employee involvement. Team Structural Approach Advantages
Dual loyalties and conflict. Time and resources spent on meetings. Unplanned decentralization. Team Structural Approach Disadvantages
Can draw on expertise worldwide. Highly flexible and responsive. Reduced overhead costs. Virtual Network Structural Approach Advantages
Lack of control; weak boundaries. Greater demands on managers. Employee loyalty weakened. Virtual Network Structural Approach Disadvantages
Created by: abbyjp
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