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34 Cards in this Set
- Front
- Back
Differentiation
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the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals.
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Division of labor
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the process of establishing and controlling the degree of specialization in the organization.
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Organizational role
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the set of task-related behaviors required of a person by his or her position in an organization.
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Authority
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the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.
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Control
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the ability to coordinate and motivate people to work in the organization's best interest.
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Function
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a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs.
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Division
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A subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service.
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Support functions
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a function which facilitate an organization's control of its relationships with the environment and its stakeholders.
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Production functions
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functions manage and improve the efficiency of an organization's conversion processes so that more value is created.
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Maintenance functions
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the functions which enable an organization to keep its departments in operation
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Adaptive functions
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the functions which allow an organization to adjust to changes in the environment.
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Managerial functions
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the functions which facilitate the control and coordination of activities within and among departments.
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Five kinds of functions
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Support Functions
Production Functions Maintenance Functions Adaptive Functions Managerial Functions |
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Hierarchy
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A classification of people according to authority and rank.
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Vertical differentiation
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the way an organization designs its hierarchy of authority and creates reporting relationships to link organizational roles and subunits.
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Horizontal differentiation
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The way an organization groups organizational tasks into rules and roles into subunits (functions and divisions).
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Organizational Design Challenges:
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Differentiation vs Integration
Centralization vs Decentralization Standardization vs Mutual adjustment |
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Subunit orientation
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a tendency to view one's role in the organization strictly from the perspective of the time frame, goals, and interpersonal orientations of one's subunit.
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Integration Mechanisms
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Hierarchy of authority
Direct contact Liaison role Task force Team Integrating role Integrating department |
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Integration
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the process of coordinating various tasks, functions, and divisions so that they work together and not at cross-purposes.
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Task force
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a temporary committee set up to handle a specific problem. Usually one or a few people from each function and chaired by a sr. manager.
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Team
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a permanent task force or committee.
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Integrating role
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a full-time position established specifically to improve communication between divisions.
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Centralized
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organizational setup whereby the authority to make important decisions is retained by managers at the top of the hierarchy.
Advantage: lets top managers coordinate organizational activities and keep the organization focused on its goals. Disadvantages: top managers become oerloaded and immersed in operational decision making about day-to-day resource issues. |
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Decentralized
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an organizational setup whereby the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy.
Advantages: promotes flexibility and responsiveness by allowing lower level managers to make on-the-spot decisions. Disadvantages: planning and coordination become very difficult. |
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Standardization
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conformity to specific models or examples - defined by sets of rules and norms - that are considered proper in a given situation.
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Mutual adjustment
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the compromise that emerges when decision making and coordination are evolutionary processes and people use their judgment rather than standardized rules to address a problem.
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Formalization
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the use of written rules and procedures to standardize operations.
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Rules
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formal, written statements that specify the appropriate means for reaching desired goals.
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Norms
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standards or styles of behavior that are considered acceptable or typical for a group of people.
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Socialization
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the process by which organizational members learn the norms of an organization and internalize these unwritten rules of conduct.
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Mechanistic structures
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structures which are designed to induce people to behave in predictable, accountable ways. Best suited to organizations that face stable, unchanging environments.
Characteristics: Individual specialization, simple integrating mechanisms, centralization, standardization |
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Organic structures
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structures which promote flexibility, so people initiate change and can adapt quickly to changing conditions.
Characteristics: joint specialization, complex integrating mechanisms, decentralization, mutual adjustment |
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Contingency approach
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a management approach in which the design of an organization's structure is tailored to the sources of uncertainty facing an organization.
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