Management Chapter 7
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is defined as the framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated.
Refers to the deployment of organizational resources to achieve strategic goals.
Dell. Inc. has undergone several rounds of reorganinzing as managers search for the right organization structure to meet new goals.
Sometimes called division of labor is the degree to which organizational tasks are subdivided into individual jobs.
is the visual representation of an organization's structure.
Fundamental characteristics of vertical organization structure include specialization, chain of command, span of management and centralization and decentralization.
Chain of command
is an unbroken line of authority that links all individuals in the organization and specifies who reports to whom
is the formal and legitimate right of a manager to make decisions , issue orders, and allocate resources to achieve outcomes desired by the organization
is the flip side of the authority coin; it refers to the duty to perform the task or activity one has been assigned.
means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command
When a manager transfers authority and responsibility to positions below them in the hierarchy
the formal power to direct and control immediate subordinates
which refers to the right to advise, counsel and recommend in the manager's area of expertise
span of management
sometimes called span of control refers to the number of employees reporting to a supervisor
A tall structure
is characterized by an overall narrow span of management and a relatively large number of hierarchial levels
a flat structure
is charcterized by an overall broad span of management and relatively few hierarchical levels.
Current buisness models trend towards the flat structure where management has greater decentralization
means the decision authority is pushed down to lower organization levels.
means that decisions authority is located near top organization levels.
is the basis for grouping indvidual postions into departments and departments into the total organization.
Three traditonal departmentalization are
A functional structure
Groups employees into departments based on similar skills, tasks and use of resources.
groups employees and departments based on similar organizational outputs (products or services) such that each division has a mix of fucntional skills and tasks.
An alternative approach to divisional structure is to group employees and departments based on geographic region or customer group.
Colgate - Palmolive is structutured into
four geographic divisons
The Matrix approach
"My name is NEO"
use both fucntional and divisional chains of command simultaneously in the same part of the organization
Two boss employees
in the matrix structure some employees have two boss employees. which means employees report to two bosses simultaneously.
top leader - matrix structure
in the matrix structre the top leader is the overseer of both the product and the functional chains of command and is responsible for the entire matrix.
Popular contemporary approaches to departmentaliation include
the team and virtual network structures
FBI Flying Squad
to be more responsive in the fight against terrorisim the FBI created the flying squad teams that spring into action when minimally staffed offices request assistence
Cross functional team
is a group of employees from various functional departments that meet as a team to resolve mutual problems
is a group of employees from all functional areas permanently assigned to focus on a specific task or activity
Team based structure
is one made in whicht he entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals
Whole Foods Market team uses
A team BAsed structure
With a virtual network structure
the organization subcontracts most of its major functions to a separate companies and coordinates their activities from a small headquaters organization
The Modular Approach
is one in which a manufacturing company uses outside suppliers to provide large chunks of a product such as an automobile which are then assembled into a final product by a few employees.
Each approach to deparmentalization has
distinct advantages and disadvantages.
Every organization needs mechanisms for horizontal integration and coordination.
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