Organizational Concepts

496 o a structure that is flat uses cross hierarchical

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Unformatted text preview: al - § Matrix: dual lines of authority and combines functional and product departmentalization o Chain of Command: The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. o Span of Control: The number of subordinates a managed can efficiently and effectively direct (usually 4- 8). o Centralization and Decentralization § Centralization: The degree to which decision making is concentrated at a single point in an organization. o Formalization: The degree to which jobs within an organization are standardized. - Mechanistic Organization (p.496) o A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. o Generally synonymous with bureaucracy o Focus on efficiency - Organic Organization (p.496) o A structure that is flat, uses cross- hierarchical and cross- functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making. o Looks a lot like boundaryless organization o Focus on adaptability - Organization Structure – Determinants and Outcomes (p.496- 500) o Strategy § Innovation strategy: A strategy that emphasizes the introduction of major new products and services. § Cost- minimization strategy: A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. § Imitation strategy: A strategy that seeks to move into new products or new markets only after their viability has already been proven. o...
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This document was uploaded on 03/02/2014 for the course MGMT 201 at Georgetown.

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