the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated.
sometimes called division of labor, the degree to which organizational tasks are subdivided into individual jobs.
Chain of Command
an unbroken line of authority that links all individuals in the organization and specifies who reports to whom
Unity of Command
means that each employee is held accountable to only one supervisor
refers to a clearly defined line of authority in the organization that includes all employees
the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve outcomes desired by the organization
the flip side of the authority coin; it refers to the duty to perform the task or activity that one has been assigned.
people with authority an responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command
when managers transfer authority and responsibility to positions below them in the hierarchy
Span of Management/Span of Control
refers to the number of employees reporting to a supervisor
means that decision authority is located near the top organization levels
means that decision authority is pushed down to lower organization levels
the basis for grouping individual positions into departments and departments into the total organization
vertical functional structure
groups employees into departments based on similar skills, tasks, and use of resources
groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks
uses both functional and divisional chains of command simultaneously in the same part of the organization
Virtual Network approach
means that the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.
is one in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals.
a temporary team or committee formed to solve a specific short-term problem involving several departments
a group of employees from various functional departments that meet as a team to resolve mutual problems
a person responsible for coordinating the activities of serveral departments for the completion of a specific project.
refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
a horizontal approach is needed for a differentiation strategy and when the organization needs flexibility to cope with an uncertain environment
a vertical structure is appropriate for a cost leadership strategy, which typically occurs in a stable environment.