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OB Chap 15
organizational design
21
Business
Graduate
11/10/2012

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Term
organizational design
Definition
process of selcting a structure for the tasks, responsibilities and auth relationshis within an org
Term
org chart
Definition
representation of an orgs internal structure indicationg how carious tasks and functions are interrelated
Term
environmental factors
Definition
the charac of the present and possible future environments
how those charac affect the orgs abilitiy to function effectiveley
Term
factors that comprise the environment
Definition
suppliers, distributors, competitors, customers
Term
strategies
Definition
cost leadership: low cost
differentiation: unique
focused: specific niche
Term
org by differentiaion
Definition
composed of unite that work on specialized tasks using diff work mething and employees w unique competencies
Term
org by specialization
Definition
id tasks and asssign to dept or teams-similar to division of labor
Term
mechanistic managmenet practice
Definition
break down activities into separate highly specialized tasks, rely on standard rules, centralize decision making at the top
Term
organic management practive
Definition
encouragfe leaders and sub to work togehter into teams and comm openly. ind tasks
Term
hieracrhy
Definition
having fewer layers creates more efficient org that can react faster to comp and more cost effective
Term
span of control
Definition
number of employees reporting to one person. influencers:
comp of manager and employee
similarity of taks being supervised
incidence of new problems in dept
extent of clear operating standards and rules
Term
accountability
Definition
point where auth and responsibility meet and essential for high performance
Term
delegation
Definition
establish goals and standards
ensure clarity
involvemenet
expect comleted work
Term
barriers to delegation
Definition
failure to define auth and responsibility
culture
Term
centralization
Definition
auth at top of dept
Term
decentralization
Definition
delegation of auth to lower level employees. potential benefits:
frees up top leaders
develops low level
lower better grasp of facts
foster healthy enviro
Term
decision to centralize or decentralize
Definition
cost of decisions: costly central
uniformity of policy
competency levels
control mechanism
enviro influences
Term
functional design
Definition
grouping leaders according to areas of expertise
benefits: economical, support skill specifalization, reduce duplication, enhance career development
high qual
pitfalls:
inadequet comm,comflicts over priority, diff coord btwn depts, focus on dept, experts only in narrow fields
Term
product design
Definition
all functions contrubute to a product and are organized under 1 leader. used in fortune 500 for a differentiation strat
benefits: fast change, product line visibility, customer demands, clearly defined responsi, cross functional
pitfalls: not utilize skills, not foster coord across product lines, limited career mobility, encourage poliutics
Term
geographic design
Definition
organize activities around location
benefits: saves time/cost, close to raw materials
pitfalls: duplication of functions, conflict location goals and org goals, added levels of management
Term
network design
Definition
subcontracts operations to other firms
benefits: part time specialists to solve complex problems, bring outside experts, minimiuze beurocracy
pitfalls: lack knowledge, conflict of interest, supervision, availability
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