Business Management Chapter 6

Job Specialization
The degree to which the overall task of the organization is broken down and divided into smaller component parts
Job Rotation
An alternative to specialization that involves systematically moving employees from one job to another
Job Enlargement
An alternative to job specialization that increases the total number of tasks workers perform
Job Enrichment
An alternative to job specialization that attempts to increase both the number of tasks a worker does and the control the worker has over the job
Job Characteristics Approach
An alternative to job specialization that suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences.
o Skill variety: The number of things a person does in a job
o Task Identity: The extent to which the worker does a complete or identifiable portion of the total job
o Task significance: The perceived importance of the task
o Autonomy: The degree of control the worker has over how the work is performed
o Feedback: The extent to which the worker knows how well the job is being performed
Work Team
An alternative to job specialization that allows the entire group to design the work system it will use to perform an interrelated set of tasks
Departmentalization
The process of grouping jobs according to some logical arrangement
Functional Departmentalization
Grouping jobs involving the same or similar activities
Product Departmentalization
Grouping activities around products or product groups
Customer Departmentalization
Grouping activities to respond to and interact with specific customers or customer groups
Location Departmentalization
Groups jobs on the basis of defined geographic sites or activities
Scalar Principle
Suggests there must be a clear and unbroken line of authority that extends from the lowest to the highest position in the organization.
Span of Management (Span of Control)
The number of people who report to a particular manager
Authority
Power that has been legitimized by the organization
Delegation
The process by which a manager assigns a portion of his or her total workload to others
Decentralization
The process of systematically delegating power and authority throughout the organization to middle and lower-level managers
Centralization
The process of systematically retaining power and authority in the hands of higher-level managers
Coordination
The process of linking the activities of the various departments of the organization.
Pooled Interdependence
When units operate with little interaction; their output is pooled at the organizational level.
Sequential Interdependence
When the output of one unit becomes the input for another in a sequential fashion. (Assembly line-one to the next to the next).
Reciprocal Interdependence
When activities flow both ways between units (dispatch center to dispatch center)
Bureaucracy
A model of organization design based on a legitimate and formal system of authority.
Situational View of Organizational Design
Based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors
Technology
Conversion process used to transform inputs into outputs
Mechanistic Organization
Similar to the bureaucratic or System 1 model, most frequently found in stable environments
Organic Organization
Very flexible and informal model of organizational design, most often found in unstable and unpredictable environments
Differentiation
Extent to which the organization is broken down into subunits
Integration
Degree to which the various subunits must work together in a coordinated fashion
Organizational Size
Total number of full-time or full-time-equivalent employees
Organizational Life Cycle
Progression through which organizations evolve as they grow and mature
Functional Design
Based on the functional approach to departmentalization
Conglomerate Design
Used by an organization made up of a set of unrelated businesses
Divisional Design
Based on multiple businesses in related areas operating within a larger organizational framework
Matrix Design
Based on two overlapping bases of departmentalization
Team Organization
An approach to organizational Design that relies almost exclusively on project-type teams, with little or no underlying hierarchy
Virtual Organization
One that has little or no formal structure
Learning Organization
One that works to facilitate the lifelong learning and personal development of all its employees while continually transforming itself to respond to changing demands and needs