Management 300 Chapter 10

Organizational Architecture
The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used.
Organizational Structure
A formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals.
Organizational Design
The process by which managers make specific organizing choices that result in a particular kind of organizational structure.
Job Design
The process by which managers decide how to divide tasks into specific jobs.
Job Simplification
The process of reducing the number of tasks that each worker performs
Job Enlargement
Increasing the number of different tasks in a given job by changing the division of labor.
Job Enrichment
Increasing the degree of responsibility a worker has over his or her job.
Functional Structure
An organizational structure composed of all the departments that an organization requires to produce its goods or services.
Divisional Structure
An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.
Product Structure
An organizational structure in which each product line or business is handled by a self-contained division.
Geographic Structure
An organizational structure in which each region of a country or area of the world is served by a self-contained division.
Market Structure
An organizational structure in which each kind of customer is served by a self-contained division; also called customer structure.
Matrix Structure
An organizational structure that simultaneously groups people and resources by function and by product.
Product Team Structure
An organizational structure in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates.
Cross-Functional Team
A group of managers brought together from different departments to perform organizational tasks.
Authority
The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.
Hierarchy of Authority
AN organization’s chain of command, specifying the relative authority of each manager.
Span of Control
The number of subordinates who report directly to a manager.
Line Manager
Someone in the direct line or chain of command who has formal authority over people and resources at lower levels.
Staff Manager
Someone responsible for managing a specialist function, such as finance or marketing.
Decentralizing Authority
Giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources.
Integrating Mechanisms
Organizing tools that managers can use to increase communication and coordination among functions and divisions.
Task Force
A committee of managers from various functions or divisions who meet to solve a specific, mutual problem; also called ad hoc committee.
Organizational Culture
The shared set of beliefs, expectations, values, and norms that influence how members of an organization relate to one another and cooperate to achieve organizational goals.
Organizational Ethics
The moral values, beliefs, and rules that establish the appropriate way for an organization and its members to deal with each other and with people outside the organization.