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Ch. 15
Foundations of Organization Structure
21
Business
Undergraduate 2
05/12/2014

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Term
organizational structure
Definition
the way in which job task are formally divided, grouped, and coordinated
Term
work specialization
Definition
the degree to which tasks in an organization are subdivided into seperate jobs
Term
departmentalization
Definition
the basis by which jobs in an organization are grouped together
Term
chain of command
Definition
the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom
Term
authority
Definition
the rights inherent in a managerial position to give orders and to expect the orders to be obeyed
Term
unity of command
Definition
the idea that a subordinate should have only one superior to whom he or she is directly responsible
Term
span of control
Definition
the number of subordinates a manager can efficeintly and effectively direct
Term
centralization
Definition
the degree to which decision making is concentrated at single point in an organzation
Term
formalization
Definition
the degree to which jobs within an organiztion are standardized
Term
simple structure
Definition
an organization structure characterized bu a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization
Term
bureaucracy
Definition
an organization structure with highly routine opeating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command
Term
matrix structure
Definition
an organization structure that creates dual lines of autority and combines functional and product departmentalization
Term
virtual organization
Definition
a small, core organization that outsources major business functions
Term
boundaryless
Definition
an organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams
Term
mechanistic model
Definition
a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization
Term
organic model
Definition
a structure that is flat, uses cross-hiararchical and cross-funtional teams, has low formalization, posses a comprehensive information netowrk, and relies on participative decision making
Term
innovation strategy
Definition
a strategy that emphasizes the introduction of major new products and services
Term
cost-minimization strategy
Definition
a strategy that emphasizes tight cost controls, avoidance of unnecessary or marketing expense and price cutting
Term
imitation strategy
Definition
a strategy that seeks to move into new products or new markets only after their viability has already been proven
Term
technology
Definition
the way in which an organization transfers its inputs into outputs
Term
environment
Definition
institutions or forces outside an organization that potentially affect the organizations performance
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