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document describing an orgs overall direction and general goals.
- innovation labs
- physical facilities built as venues for employees to use when attempting to develop creative solutions.
formal configuration b/t indivs and groups with respect to tasks, responsibilities and authority within an org.
hierarchy of authority
distinction b/t high level indivs and lower level indivs.
restructuring workforces, seeking to eliminate waste.
span of control
number of people formally required to report to each indiv manager is immediately clear.
wide span of control
supervisors responsible for many indivs
narrow span of control
supervisors responsible for fewer indivs.
division of labor
many tastks to be performed within a company are divided into specialized jobs.
- have decision making power
- various vice presidents and managers.
- providing specialized srevices regarding testing and interviewing procedures and info about personnel discrimination
- process of delegating power from higher to lower levels within orgs.
- downsizing is in keeping with tendency toward decentralization.
tendency for a few powerful indivs or groups to hold most of the decision making power.
- organizing companies into coherent units.
- production, sales, R&D, accounting
most basic approach to departmentalization.
- creates self contained division which are responsible for everything to do with a certain product or group of products.
- product group 1 - production, sales, R and D, accounting
- product group 2 - etc...
- bype of org where an employee has to report to a functional manager and a product manager.
- employees have two bosses.
process of coordinating the structural elements of organizations in the most appropriate manner.
classical org. theory
- a bureaucracy - clear set of rules, specialization of labor, highly routine tasks and highly impersonal working environment.
- neoclassical org. theory
neoclassical org theory
economic effectivenss not the only goal of an industrial organization but also employee satisfaction.
contingency approach to org. design
idea that the best design for an org depends on the nature of the environment in which it operates.
- one that's stable in nature
- people perform jobs that don't change much over the years.
one that changes frequently making it likely that people will have to alter the nature of the job.
orgs that own their own suppliers and/or their own customers who purchase their products.
orgs where work teams are organized such that each performs many different steps in the work process.
when an org adopts a strategy, it affects them in various ways.
different ways of governing how things get done in an organization.
arrangement of units within one organization.
plans where two or more orgs come together.
org where chains of command are eliminated, spans of control are unlimited and rigid departments give way to empowered teams.
2 types of boundaryless orgs
- modular (networked) orgs
- virtual orgs
businesses that outsource noncore functions to other companies while focusing on their own core business.
orgs composed of a continually evolving network of companies linked together to share skills costs and access to markets.
adding an unrelated business or product to an org design.
reasons for adding a conglomerate
- parent company can enjoy benefits of diversification
- conglomerates may provide built in markets and access to supplies
type of org design where two or more separate firms join their competitive capabilities to operate a specific business.
mutual service consortia
- arrangements b/t two similar companies from the same industries to pool their resources to get a benefit too hard to get alone.
- weak and distant
- alliances b/t companies in different industries that have complementary capabilities.
- strong and close
arrangements temporary or permanent where companies work together to fulfill opportunities that require the capabilities of the other.
an entirely new company that's separate from the original parent org.