MGMT 201-91 Chapter 9

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MattG1007  on March 7, 2011

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MGMT 201-91 Chapter 9

board of directors
Carefully selected committee that reviews major policy and strategy decisions proposed by top management.
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board of directors Carefully selected committee that reviews major policy and strategy decisions proposed by top management.
committee Organization structure in which a group of people are formally appointed, organized, and superimposed on the line or line and staff structure to consider or decide certain matters.
contingency (situational) approach to organization structure States that the most appropriate structure depends on the technology used, the rate of environmental change, and other dynamic forces.
customer departmentalization Defining organizational units in terms of customers served.
departmentalization Grouping jobs into related work units.
flat structure Organization with few levels and relatively large spans of management at each level.
functional departmentalization Defining organizational units in terms of the nature of the work.
geographic departmentalization Defining organizational units by territories.
horizontal structure Consists of two groups. One group is composed of members of senior management who are responsible for strategic decisions and policies. The second group is composed of empowered employees working together in different process teams.
hybrid departmentalization Occurs when an organization simultaneously uses more than one type of departmentalization.
line and staff structure Organization structure that results when staff specialists are added to a line organization.
line functions Functions and activities directly involved in producing and marketing the organization's goods or services.
line structure Organization structure with direct vertical lines between the different levels of the organization.
matrix structure Hybrid organization structure in which individuals from different functional areas are assigned to work on a specific project or task.
mechanistic systems Organizational systems characterized by a rigid delineation of functional duties, precise job descriptions, fixed authority and responsibility, and a well-developed organizational hierarchy through which information filters up and instructions flow down.
organic systems Organizational systems characterized by less formal job descriptions, greater emphasis on adaptability, more participation, and less fixed authority.
organization structure Framework that defines the boundaries of the formal organization and within which the organization operates.
outsourcing Practice of subcontracting information systems work to an independent outside source.
product departmentalization Grouping all activities necessary to produce and market a product or service under one manager.
staff functions Functions that are advisory and supportive in nature; designed to contribute to the efficiency and maintenance of the organization.
tall structure Organization with many levels and relatively small spans of management.
virtual organization Temporary network of independent companies—suppliers, customers, and even rivals—linked by information technology to share skills, costs, and access to one another's markets.
1.) Size 2.) Strategy 3.)Environment 4.) Organization and Technology 4 Factors Affecting Structure
1.) Work Functions 2.) Product 3.) Geographic 4.) Customer 5.) Hybrid 5 Forms of Departmentalization

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