Formalization

Written documantation used to direct and control employees.

Ex.:  policies & procedures, rule books, job descriptions, FAR

Team Based

(departmentization)

Group of Employees from various functional dept. to met to resolve mutual problems.

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Authority

formal and legitimate right to manage and make decisions.

Responsibility

duty or activity on employee has been assigned.

Delegation

Process to transfer authority and responsibility to positions below them.

Geographic Based Divisions

Adv. - fast response in an unstable env., posters concern for custom needs, excel. coordination in formed group.

Dis. - duplication of resources, less tech specialization, poor coordination among divisions, less top management control, competition for coorperate resources.

Span of management

number of empoyees reporting to a supervisor, called

"span of control"

centralization & decentralization

centralization - decision authority near top organizational levels

decentralization - decision authorty near lower organizational levels

Departmentization

The way individuals are grouped in an organization.

1) vertical functional

2) divisional

3) Matrix

4) Team Based

5) Network - Virtual

 Matrix

(departmentization)

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uses both functional & divisional chain of command.

adv.- more eff. use of resources, flexible in changing environment, dev. of general and mgt. skills, interdisciplinary corporate expertise available to all, enlarged tasks for employees.

Dis.- dual chain of command, conflict with both sides.

 Vertical Functional Approach

(departmentization)

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Adv.-grouping employees in common tasks permits economics of scale and efficient resource use. chain of command converges at top, allows centralized decision making.

Dis.- barriers that exist across departments.

Network

(departmentization)

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disaggregates major functions to seporate companies that are broken by a small headquarters org.

Adv.-same adv of functional structure, reduced barriers among dept., less response time, quicker decision, reduced overhead.

Dis.-dual loyalties & conflict, time & resources spent on meetings, unplanned decentralization.

Divisional Approach

(departmentization)

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departments are grouped based on similar org. output.

Adv.- efficient use of resources, in depth skill specialization, career progress in functional group, excellent coordination with function.

Dis.-poor communication between functions, slow response to external change, decisions not centralized causing delays.

Organizational Structure

The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated.

Work Sepcialization

The degree to which organizational tasks are subdivided into individual jobs; also called division of labor.

Chain of Command

An unbroken line of authority that links all individual s in the organization and specifies who reports to whom.

Accountability

the fact that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Line Authority

A form of authority in which individuals in management positions have the formal power to direct and control immediate subordinates.

Staff Authority

A form of authority granted to staff specialists in the area os expertise

Tall Structure

Flat Structure

Tall - management structure that has an overall narrow span of management and has a reletavely large number of heirarchical levels.

Flat - management structure charaterized by an overall broad span of control and relatively few heirarchical levels.

Functional Structure

The grouping of positions into departments based on similar skills, expertise, and resource use.

Divisional Structure

An organizational stucture in which departments are grouped based on similar organizational outputs.

Team based structure

Management structure in which the entire organization is made up of teams that coordinate their work and work directely with customers to accomplish the organization's goals

Network Structure

Organizational structure that disaggregates major functions to separate companies that are brokered by a small HQ organization.

Modular Approach

(networking)

Manufacturing company uses outside suppliers to provide entire chunks of product, which are then asembled into a final product by a handful of workers.