Term
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Definition
how well a firm implements that strategies that executives create it
-Structure
-Control processes |
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Term
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Definition
The process of splitting up a task into a series of smaller tasks, each of which is performed by a specialist
-all about efficiency
-but can also create challenges |
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Term
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Definition
How tasks are assigned and grouped together with formal reporting relationships
-Alignment, Alignment, Alignment |
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Term
| Vertical Linkages (building block for organizational structure) |
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Definition
| Relationships within an organizational structure that show the lines of responsibility through which a supervisor delegates authority to subordinates, oversees their activities, evaluates their performance, and guides them toward improvement when necessary |
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Term
| Horizontal Linkages (Building block for organizational structure) |
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Definition
| Relationships between equals in an organization |
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Term
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Definition
Helps map out the vertical linkages
Each person reports to 1 and only 1 person |
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Term
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Definition
| Unofficial relationship such as personal friendships, rivalries, and politics |
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Term
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Definition
| do not rely on formal systems of division of labor, and organizational charts are not generally needed. If the firm is a sole proprietorship, one person performs all of the tasks that the organization needs to accomplish. Consequently, this structure is common for many small businesses |
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Term
| Advantages of simple structure |
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Definition
| Flexibility offered by simple structures encourages employees' creativity and individualism |
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Term
| Disadvantages of Simple structure |
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Definition
| A lack of clear guidance from the top of the organization can create confusion for employees, undermine their motivation, and make them dissatisfied with their jobs |
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Term
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Definition
| Employees are divided into departments that each handles activities related to a functional area of the business, such as marketing, production, human resources, information technology, and customer service |
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Term
| Advantages of functional structure |
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Definition
-Each person tends to learn a great deal about their particular function
-Tends to create highly-skilled specialists
-Grouping everyone that serves a particular function into one department tends to keep costs low and create efficiency
-Conflicts are rare |
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Term
| Disadvantages of Functional Structure |
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Definition
| Executing strategic changes can be very slow when compared to other structures |
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Term
| Multidivisional Structure |
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Definition
| employees are divided into departments based on product areas and/or geographic regions. General Electric, for example, has sic product divisions: Electric, capital, home and business solutions, healthcare, aviation, and transportation |
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Term
| Advantages of Multidivisional Structure |
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Definition
-Allows a firm to act quickly
-Helps an organization to better serve customers’ needs |
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Term
| Disadvantages of Multidivisional Structure |
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Definition
-Empowering divisions to act quickly can backfire if people in those divisions take actions that do not fit with the company’s overall strategy
-They tend to be more costly to operate than functional structures |
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Term
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Definition
| Firms that engage in projects of limited duration often use this structure. Employees can be put on different teams to maximize creativity and idea flow. As parodied in the movie Office Space, this structure is common in high tech and engineering firms |
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Term
| Advantages of Matrix structure |
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Definition
-Maximizing the organization’s flexibility
-Enhancing communication across functional lines
-Creating a spirit of teamwork and collaboration
-Developing new managers |
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Term
| Disadvantages of Matrix Structure |
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Definition
-Violates the unity of command principle because each employee is assigned multiple bosses
-Potential for conflicts to arise among project managers |
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Term
| Boundaryless Organization |
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Definition
an organization that removes the usual barriers between parts of the organization as well as barriers between the organization and others
-This term was created by former GE CEO Jack Welch
-Making progress toward being boundaryless can help an organization become more flexible and responsive |
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Term
| Why might an organization change its structure? |
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Definition
Slow decision making
Poor performance
Misalignment
Too complex |
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Term
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Definition
a focus on measurable results within an organization. Often, output measures are the basis for punishments and privileges/rewards
(Professors in the College of Business and tenure) |
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Term
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Definition
A focus on specifying the action that ultimately lead to results
(Attendance in 4970; influences your behavior (You show up to class more) and theoretically leads to better output measures (test scores)) |
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Term
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Definition
Relying on shared traditions, expectations, values, and norms to lead people to work toward the good of their organization.
-Informal
-Used in creative settings (Where output is hard to measure)
(Google 20% of work week devoted to own new projects) |
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