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ORGANIZATION STRUCTURE (Effective strategies for downsizing (Invest.…
ORGANIZATION STRUCTURE
organizational structure= The way in which job tasks are formally divided, grouped and coordinated.
Work specialization = The degree to which tasks in an organization are subdivided into separate jobs.
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Chain of command = The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.
Authority = The rights inherent in a managerial position to give orders and to expect the orders to be obeyed.
Unity of command = The idea that a subordinate should have only one superior to whom he or she is directly responsible
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Centralization The degree to which decision making is concentrated at a single point in an organization.
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Simple structure An organizational structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.
Bureaucracy = An organizational structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.
Functional structure = An organizational structure that groups employees by their similar specialties, roles, or tasks.
Divisional structure = An organizational structure that groups employees into units by product, service, customer, or geographical market area.
Matrix structure = An organizational structure that creates dual lines of authority and combines functional and product departmentalization.
Virtual structure = A small, core organization that outsources major business functions.
Team structure = An organizational structure that replaces departments with empowered teams, and which eliminates horizontal boundaries and external barriers between customers and suppliers.
Circular structure = An organizational structure in which executives are at the center, spreading their vision outward in rings grouped by function (managers, then specialists, then workers).
Mechanistic model = A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.
Organic model = A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
Innovation strategy = A strategy that emphasizes the introduction of major new products and services.
Cost-minimization strategy = A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.
Imitation strategy = A strategy that seeks to move into new products or new markets only after their viability has already been proven.
Institutions = Cultural factors that lead many organizations to have similar structures, especially those factors that might not lead to adaptive consequences.
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