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deployment of resources to achieve strategic goals

organizational structure

the vertical and horizontal configuration of departments, authority, and jobs within a company

work specialization

tasks are subdivided into individual jobs, employees perform only the tasks relevant to their specialized function, jobs tend to be small, but they can be performed efficiently

chain of command

unbroken line of authority that links all persons in an organizations, shows who reports to whom, associated with two underlying principles

unity of command

have 1 supervisor

scalar principle

covers all employees, top to bottom

span of management

# of employees who report to a supervisor

tall structure

has narrow span and more hierarchical levels

flat structure

has wide span, horizontally dispersed, fewer hierarchical levels


decisions authority is located near top of organization


decision authority is pushed downward to lower organizational levels. Must fit the organizations strategy

vertical functional structure

people are grouped together in departments by common skills

divisional structure

grouped together based on a common product, program, or geographical region

matrix structure

some employees report to two bosses, functional and divisional chains of command

team based structure

created to accomplish specific tasks

virtual network approach

organization acts as a central hub, outsourced mostly

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