Organization Structures and Design

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organizing arranges people and resources to work toward a goal  
organization structure a system of tasks, reporting relationships, and communication linkages  
organizational chart describes the arrangement of work positions within an organization  
formal structure the official structure of the organization  
informal structure the set of unofficial relationships among an organization's members  
social network analysis identifies the informal structures and their embedded social relationships that are active in an organization  
departmentalization the process of grouping people and jobs into work units  
functional structure groups together people with similar skills who perform similar tasks  
functional chimneys problem a lack of communication and coordination across functions (aka functional silos problem)  
divisional structure groups together people working on the same product, in the same area, with similar customers, or on the same processes  
product structure groups together people and jobs focused on a single product or service  
geographical structure groups together people and jobs performed in the same location  
customer structure groups together people and jobs that serve the same customers or clients  
work process a group of related tasks that collectively creates a valuable work product  
process structure groups jobs and activities that are part of the same processes  
matrix structure combines functional and divisional approaches to emphasize project or program teams  
team structure uses permanent and temporary cross-functional teams to improve lateral relations  
cross-functional team brings together members from different functional departments  
project teams are convened for a particular task or project and disband once it is completed  
network structure uses information technologies to link with networks of outside suppliers and service contractors  
strategic alliance a cooperation agreement with another organization to jointly pursue activities of mutual interest  
boundaryless organization eliminates internal boundaries among subsystems and external boundaries with the external environment  
virtual organization uses IT and the Internet to engage a shifting network of strategic alliances  
organizational\design the process of creating structures that accomplish mission and objectives  
bureaucracy emphasizes formal authority, order, fairness, and efficiency  
mechanistic design centralized, with many rules and procedures, a clear-cut division of labor, narrow spans of control, and formal coordination  
organic design decentralized, with fewer rules and procedures, open divisions of labor, wide spans of control, and more personal coordination  
adaptive organization operates with a minimum of bureaucratic features and encourages worker empowerment and teamwork  
chain of command links all persons with successively higher levels of authority  
span of control the number of subordinates directly reporting to a manager  
tall structures have narrow spans of control and few hierarchical levels  
flat structures have wide spans of control and few hierarchical levels  
delegation the process of distributing and entrusting work to others  
empowerment allows others to make de3cisions and exercise discretion in their work  
centralization the concentration of authority for most decisions at the top level of an organization  
decentralization the dispersion of authority to make decisions throughout all organization levels  
staff positions provide technical expertise for other parts of the organization  

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