Chpt. 17 Org. Design,Innovation

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Chpt. 17 Org. Design,Innovation
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  1. Organization
    system of consciously coordinated activities or sources of two or more people.
  2. 4 Common Denominators of Org.
    • Coordination of effort
    • Common goal
    • Division of labor
    • Hierarchy of authority
  3. Unity of Command Principle
    each employee should report to a single manager
  4. Organization Chart
    graphic representation of formal authority and division of labor relationships
  5. Dimensions of Org. Structure
    • 1)Hierarchy of Authority
    • 2)Division of Labor
    • 3)Spans of Control
    • 4)Line and Staff Positions
  6. Span of Control
    the number of people reporting directly to a given manager.

    • Generally, the narrower the span of
    • control, the closer the supervision and the higher the administrative costs as
    • a result of a higher manager-to-worker ratio.
  7. Staff Personnel
    • Do background research and provide technical advice, and recommendations to line
    • managers.
  8. Line Managers
    have authority to make organizational decisions.
  9. Closed System
    self-sufficient entity, closed to the surrounding environment.
  10. Open System
    depends on constant interaction with the environment for survival
  11. Learning Organization
    • one that proactively creates, acquires, and transfers knowledge and that changes
    • its behavior on the basis of new knowledge and insights
  12. Team Mental model
    • represents team members’ “shared, organized understanding and mental representation of
    • knowledge about key elements of the team’s relevant environment
  13. Organizational Design
    • The structures of accountability and responsibility used to develop and implement
    • strategies, and the human resource practices and information and business
    • processes that activate those structures
  14. Functional Structure
    • groups people according to the business functions they perform, for example,
    • manufacturing, marketing, and finance
  15. Divisional Structure
    groups together activities related to outputs, such as type of product or customer
  16. Matrix Structure
    • combines functional and divisional chains of command to form a grid with two command
    • structures
  17. Hollow Structure
    • organization identifies core competencies and outsources noncore processes to vendors who
    • can do them cheaper or faster
  18. Modular Structure
    Outsources parts of a product instead of processes
  19. Virtual Organization
    • organization identifies partners with the needed talents and negotiates an agreement in
    • which the participants typically work in separate facilities, linked by
    • technology
  20. Contingency Approach to Org. Design
    • organizations tend to be more effective when they are structured to fit the demands of the
    • situation
  21. Mechanistic Organizations
    • Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down
    • communication.
  22. Organic Organizations
    Flexible networks of multitalented individuals who perform a variety of tasks
  23. Centralized Decision Making
    key decisions made by top management
  24. Decentralized Decision Making
    important decisions are made by middle- and lower-level managers
  25. Functional structure
    can save money by grouping together ppl who need similar materials+equipment
  26. Divisional Structures
    increase employees' focus on customers and products
  27. Successful Matrix Structure
    • requires superior managers who
    • communicate extensively, foster commitment and collaboration, manage conflict
    • and negotiate effectively to establish goals and priorities consistent with the
    • organization’s strategy
  28. Getting Right Fit
    Horizontal designs improve coordination and communication

    • Organizations that become hollow,
    • modular, or virtual can
    • generate superior returns by focusing on what they do best
  29. Goal Accomplishment
    • Key organizational results or outputs are compared with previously stated goals or
    • objectives

    most widely used effectiveness criteria
  30. Resource Acquisition
    org. is effective if it acquires necessary factors of production
  31. Internal Processes
    • focuses on “what the organization must excel at” to effectively meet its financial
    • objectives and customers’ expectations.
  32. Strategic Constituencies Satisfaction
    • Strategic constituency: any group of people with a stake in the organization’s operation
    • or success.
  33. Innovation
    creation of something new that is USED by consumers
  34. Seeds of Innovation
    • 1)Hard work in a specific direction
    • 2)Hard work with direction change
    • 3)Curiosity and Experimentation
    • 4)Wealth and money
    • 5)Necessity
    • 6)Combination of seeds

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