organizational design | a process in which mgrs develop or change their org's structure |
work specialization | involves having each discrete step of a job done by different people rather than having 1 person do the whole job |
chain of command | mgmt principle that no person should reort to more than 1 boss |
span of control | the # of subordinates a mgr can direct effeciently & effectively |
the # of people a person reports to; can vary | span of control |
authority | the rights inherent in a managerial position to give orders & expect them to be obeyed |
responsibility | an obligation to perform assigned activities |
line authority | the authority that entitles a mgr to direct the work of an employee |
staff authority | positions that have some authority but that are created to support, assist, & advise the holders of line authority |
power | an individual's capacity to influence decisions |
horizontal dimension | reflects a functional area |
vertical dimension | reflects the influence one holds in the org |
centrality | one's distance from the org's power core or center |
3 dimensional concept | power |
centralization | how much decision-making is pushed down to lower levels in an org; |
the higher is the level of decision making | highly centralized |
decentralization | the pushing down of decision making authority to the lowest levels of an org |
functional departmentalization | the grouping of activities by functions performed (HR, accounting, engineering) |
5 sources or bases of power | coercive, reward, legitimate, expert, referent |
coercive power | based on fear |
reward power | based on the ability to distribute something that others value |
legitimate power | based on one's position in the formal hierarchy |
expert power | based on one's expertise, special skills, or knowledge |
referent power | based on identification w/ a person who has desirable resources or personal traits |
product departmentalization | the grouping of activities by product produced |
customer deparmentalization | the grouping of activities by common customers |
geographic departmentalization | the grouping of activities by territory |
process departmentalization | the grouping of activities by work or customer flow |
mechanistic organization | a bureaucracy; a structure that is high in specialization, formalization, & centralization |
organic organization | an adhocracy; a structure that is low in specialization, formalization, & centralization |
strategy & structure | structure is a means to help mgmt achieve its objectives; type of structure depends greatly on strategy |
Alfred Chandler | concluded that changes in corporate strategy precede & lead to changes in org's structure |
size & structure | as orgs grow, their strategies become more elaborate |
after 2000 employees, the size has less influence on strategy | it is already somewhat mechanistic |
technology & structure | the more routine the technology, the more standardized the structure can be |
environment-mechanistic orgs | more effective in stable environments |
environment-organic orgs | betters suited for dynamic & uncertain environments |
simple structure | an org that is low in specialization & formalization but high in centralization |
functional structure | an org in which similar & related occupational specialties are grouped together; makes it the dominant form for the org |
results in economies of scale, minimizes duplication of personnel & equipment, same language as peers | functional structure |
divisional structure | an org made up of self contained units; focuses on results |
frees HQ from mundane details so they can focus on long-term & strategic planning | divisional structure |
disadvanage of divisional structure | duplication of activities & resources; increases org's costs & reduces efficiency |
matrix structure | specialists from functional depts are assigned to work on 1 or more projects led by a project mgr |
weaves together elements of function & product departmentalization | matrix structure |
disadvantage of matrix | employees report to 2 or mroe bosses, their dept mgr & project mgr |
strength of matrix | can facilitate coordination of a multiple set of complex & interdependent projects while still retaining the economies that result from functional specialists grouped together. |
can plant seeds of power struggle | matrix |
team-based structure | an org that consists entirely of work groups or teams |
Thermos company | moved to a structure of work teams |
boundaryless organization | an org that is not defined or limited by boundaries or categories imposed by traditional structures |
attempt to eliminate vertical, horizontal, & interorganizational barriers | boundaryless orgs |
a rapidly changing environment | compels an org to rapidly innovate to survive (boundaryless org) |
organizational culture | a system of shared meaning w/in an org that determines how employees should act |
vision or mission of the org | where org culture comes from |
org's culture | rersults from founders' biases & assumptions and what the employees learn from their subsequent experiences |
strong cultures | can create predictability, orderliness, & consistency w/o the need for written documentation |
have more of an effect on structure than weak ones | strong cultures |
What refers to right inherent in managerial position?
Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed.
What refers to right inherent is a managerial position to tell people what to do and what they expect to do it?
Authorityrefers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Managers in the chain of command have authority to do their job of coordinating and overseeing the work of others.