Chapter 11 - Organizational Design: Structure, Culture, and Control

An element of organizational structure that refers to the degree to which decision making is concentrated at the top of the organization

A former core competency that turned into a liability because the firm failed to hone, refine, and upgrade the competency

Applying current knowledge to enhance firm performance in the short term

Searching for new knowledge that may enhance future performance

An element of  organizational structure that captures the extent to which employee behavior is steered by explicit and codified rules and procedures

A process by which the founder defines and shapes an organization's culture, which can persist for decades after his or her departure

Organizational structure that groups employees into distinct functional areas based on domain expertise
Recommended with limited diversification

A situation in which opinions coalesce around a leader without individuals critically evaluating and challenging that leader's opinions and assumptions

An element of organizational structure that determines the formal, position-based reporting lines and thus stipulates who reports to whom

Mechanisms in a strategic control-and-reward system that seek to define and direct employee behavior through a set of explicit, codified rules and standard operating procedures that are considered prior to the value-creating activities

Organizational structure that combines the functional structure with the M-form, very versitile, each SBU receives support both horizontally and vertically

Organizational form characterized by a high degree of specialization and formalization, and a tall hierarchy that relies on centralized decision making

Organizational structure that consists of several distinct strategic business units (SBUs), each with its own profit-and-loss (P&L) responsibility
Uses various corporate strategies (Related/Unrelated Diversification)

organizational form characterized by a low degree of sppecialization and formalization, a flat organizational structure, and decentralized decision making

The collectively sharing value and norms of an organization's members; a key building block of organizational design

The process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization

A key building block of organizational design that determines how the work efforts of individuals and teams are orchestrated and how resources are distributed

Mechanisms in a strategic control-and-reward system that seek to guide employee behavior by defining expected results (outputs), but leave the means to those results open to individual employees, groups, or SBUs

Organizational structure in which the founders tend to make all the important strategic decision as well as run the day-to-day operations

The number of employees who directly report to a manager

An element of organizational structure that describes the degree to which a task is divided into separate jobs (i.e. the division of labor)

A key building block of organizational design; internal governance mechanisms put in place to align the incentives of principals (shareholders) and agents (employees)

The part of the strategic management process that concerns the organization, coordination, and integration of how work gets done. It is key to gaining and sustaining competitive advantage

Stucture follows strategies (Alfred Chandler) therefore strucutre must be...

What are the key building blocks of structure

What are the 4 main Structures

Functional structure is best for what kind of corporate strategy

Cooperative multidivisional (M-Form) is best for what kind of corporate strategy

Competitive multi division (M-Form) is best for what kind of corporate strategy

Characterized by 
-Centralized decision making
-High level of integration at HQ
-Co-opetition about SBU's

Characterized by 
-Decentralized decision making
-Low level of integration at HQ
-Competition among SBUs for resources

What are some short comings of a matrix structure

What are key components of organizational design

Can lead to failure of established firms when a tightly coupled system of strategy and structure experiences internal or external shifts

Allow managers to specify goals, measure progress and provide performance feedback