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MANA Final: Chapter 15

Terms in this set (22)

Organization
a system of consciously coordinated activities or forces of two or more persons
Organization charts
A graphic representation of formal authority and division of labor relationships. Can think of it as a family tree.
Divison of labor
each specialty is divided and then subdivided; at each successively lower level in the organization, jobs become more specialized
Spans of Control
Describes the number of people reporting directly to a given manager. Spans of control can range from narrow (taller hierarchical organizations) to wide (flat organizations- the more people that report to you). Historically, 7 to 10 is the best.

Four factors: organizational size, skill level, organizational culture, and managerial responsibilities.
Unity of command principle
Specifies that each employee should report to only one manager
Open-system perspective
•depends on constant interaction with the environment for survival
Ex: Human body that depends on oxygen for survival
Closed-system perspective
A self sufficient entity
oIt is "closed" to the surrounding environment
oEx: battery powered clock
Organizational design and the 3 structures
The structures of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures
1. Traditional
2. Horizontal
3. Open
Traditional
ERA: Mid 1800s-1970s
Focus: Self-contained within organization's boundaries
Type: Functional, divisional, matrix structures
Relies on a vertical hierarchy and attempts to define clear departmental boundaries and reporting relationship
Horizontal
ERA: 1980's
Focus: Team and process oriented
Type: Horizontal
Work hard to flatten hierarchy and organize people around specific segments of the work flow.
Hard to create a horizontal hierarchy
Open
ERA: Since mid-1990s
Focus: Opened beyond organization's boundaries
Type: Hollow, Modular, Virtual
Structures rely on leveraging technology and structural flexibility to maximize potential value through outsourcing and external collaboration.
Functional
Groups people according to the business functions they perform, for example, manufacturing, marketing, and finance. Manager responsible for the performance of each of these functions.
Divisional
Employees are segregated into organization groups based on industries, products or services, customers or clients, or geographic regions.
Matrix
Combines a vertical structure with an equally strong horizontal overlay. Generally combines functional and divisional chains of command to form a grid with two command structures.
Horizontal structure
• teams or work groups, either temporary or permanent, are created to improve collaboration and work on common projects.
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