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BUSI 5301 Chapter 3
Fundamentals of Organizational Structure
30
Business
Undergraduate 4
04/13/2017

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Term
chain of command
Definition
formal line of authority in a hierarchy
Term
decentralized
Definition
decision making and communication are spread out across the company
Term
departmental grouping
Definition
a structure in which employees share a common supervisor and resources, are jointly responsible for performance, and tend to identify and collaborate with each other
Term
divisional grouping
Definition
a grouping in which people are organized according to what the organization produces
Term
divisional structure
Definition
the structuring of the organization according to individual products, services, product groups, major projects, or profit centres; also called product structure or strategic business units
Term
functional grouping
Definition
the placing together of employees who perform similar functions or work processes or who bring similar knowledge and skills to bear on a task
Term
functional matrix
Definition
a structure in which functional bosses have primary authority, and product or project managers simply coordinate product activities
Term
functional structure
Definition
the grouping of activities by common function
Term
horizontal grouping
Definition
the organizing of employees around core work processes rather than by function, product, or geography
Term
horizontal linkage
Definition
the amount of communication and coordination that occurs horizontally across organizational departments
Term
horizontal structure
Definition
a structure that virtually eliminates both the vertical hierarchy and departmental boundaries by organizing teams of employees around core work processes; the en-to0end work, information, and material flows that provide value directly to customers
Term
hybrid structure
Definition
a structure that combines characteristics of various structural approaches (functional. divisional, geographical, horizontal) tailored to specific strategic needs
Term
integrator
Definition
a position or department created solely to coordinate several departments
Term
liaison role
Definition
the function of a person located in one department who is responsible for communicating and achieving coordination with another department
Term
matrix structure
Definition
a strong form of horizontal linkage in which both product and functional structures (horizontal and vertical) are implemented simultaneously
Term
multi-focused grouping
Definition
a structure in which an organization embraces structural grouping alternatives simultaneously
Term
organizational structure
Definition
designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors; identifies the grouping together of individuals into departments and of departments into the total organization; and includes the design of systems to ensure effective communication, coordination, and integration of efforts across departments
Term
outsourcing
Definition
contracting out certain functions, such as manufacturing, information technology, or credit processing, to other organizations
Term
process
Definition
organized group of related tasks and activities that work together to transform inputs into outputs that create value for customers
Term
product matrix
Definition
a variation of the matrix structure in which project or product managers have primary authority, and functional managers simply assign technical personnel to projects and provide advisory expertise
Term
re-engineering
Definition
redesigning a vertical organization along its horizontal workflow and processes
Term
symptoms of structural deficiency
Definition
signs of the organization structure being out of alignment, including delayed or poor-quality decision making, failure to respond innovatively to environmental changes, and too much conflict
Term
task force
Definition
a temporary committee composed of representatives from each department affected by a problem
Term
teams
Definition
permanent task forces often used in conjunction with a full-time integrator
Term
vertical information system
Definition
the periodic reports, written information, and computer-based communications distributed to managers
Term
vertical linkages
Definition
communication and coordination activities connecting the top and bottom of an organization
Term
virtual cross-functional teams
Definition
teams comprising individuals from different functions who are separated in space and time as well
Term
virtual network grouping
Definition
organization that is loosely connected cluster of separate components
Term
virtual network structure
Definition
the organization subcontracts many or most of its major processes to separate companies and coordinates their activities from a small headquarters organization
Term
virtual team
Definition
made up of organizationally or geographically dispersed members who are linked through advanced information and communications technologies. Members frequently use the Internet and collaborative software to work together, rather than meeting face to face
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