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1. Describe what is meant by organizational structure and
how it is revealed by an organizational chart.
2. Explain the basic characteristics of organizational
structure revealed in an organizational chart.
3. Describe different approaches to departmentalization.
4. Distinguish between classical and neoclassical
approaches to organizational design and between
mechanistic organizations and organic organizations, as
described by the contingency approach to organizational
design.
5. Describe the five organizational forms identified by
Mintzberg.
6. Characterize two forms of interorganizational design.

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  V The formal
configuration between individuals and
groups with respect to the allocation of
tasks, responsibilities, and authorities
within organizations.
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  V A diagram
representing the connections between the
various departments within an
organizationV a graphic representation of
organizational design.


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]     V
 A configuration of
the reporting relationships within
organizations; that is, who reports to
whom.
   V The process of dividing
the many tasks performed within an
organization into specialized jobs.

   V
 The number of
subordinates in an organization who are
supervised by an individual manager.

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 ! Positions in organizations in
 !V
which people can make decisions related to
doing its basic work.

 !V Positions in organizations in

 !
which people make recommendations to others
but who are not themselves involved in making
decisions concerning the organization¶s day-to-
day operations.
   V
 The extent to which authority
and decision making are spread throughout all
levels of an organization rather than being
reserved exclusively for top management
(centralization).
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The process of breaking up organizations into
coherent units.
Ê Y
V

 The type of
departmentalization based on the activities or
functions performed (e.g., sales, finance).
!  Y
V

 The type of
departmentalization based on the products (or
product lines) produced.
" # Y
V

 The type of
departmentalization in which a product or project
form is superimposed on a functional form.
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g The process of coordinating the
structural elements of an
organization in the most appropriate
manner.
g Approaches include
~ Classical and Neoclassical Approaches
~ The Contingency Approach
~ Mintzberg¶s Framework
~ The Boundaryless Organization
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   V The approach that
assumes that there is a single best way to design
organizations.
~ This approach assumes that 
     
  over their subordinates and calls for designing
organizations with      and a    
 .
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   V An attempt to
improve on the classical organizational theory that argues
that not only economic effectiveness, but also employee
satisfaction, should be goals of an industrial organization.
~ This approach assumes that 
    
        and calls for designing
organizations with      and a     .

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¬ The contemporary approach that recognizes that
no one approach to organizational design is best,
but that the best design is the one that best fits
with the existing environmental conditions.
¬ "  Y
V

 An internal
organizational structure in which people perform
specialized jobs, many rigid rules are imposed,
and authority is vested in a few top-ranking
officials.
¬ Y
 Y
V

 An internal organizational
structure in which jobs tend to be very general,
there are few rules, and decisions can be made
by lower-level employees.
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" Mintzberg claims that
organizations are
composed of five basic
elements, or groups of
individuals, any of which
may predominate in an
organization.
" The element that
predominates will
determine the most
effective design in that
situation.
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Y 
 V Employees who perform the basic
work related to an organization¶s product or
service.

 
  #V

  # Top-level executives responsible
for running an entire organization.
"  V Managers who transfer information
" 
between higher and lower levels of the
organizational hierarchy.
   V Organizational specialists
responsible for standardizing various aspects of an
organization¶s activities.

 
V

 Individuals who provide indirect
support services to an organization.
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  V An organization characterized as
being small and informal, with a single powerful
individual, often the founding entrepreneur, who is
in charge of everything.
" %  V An organizational form in
which work is highly specialized, decision making
is concentrated at the top, and the work
environment is not prone to change (e.g., a
government office).
!   %  V
 Organizations (e.g.,
hospitals and universities) in which there are lots of
rules to follow, but employees are highly skilled and
free to make decisions on their own.
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  V
The form used by many
large organizations, in which separate
autonomous units are created to deal with entire
product lines, freeing top management to focus
on large-scale, strategic decisions.
 V
 A highly informal, organic
organization in which specialists work in teams,
coordinating with each other on various projects
(e.g., many software development companies).

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An organization in which chains of command are
eliminated, spans of control are unlimited, and rigid
departments give way to empowered teams.
" Y
V

 An organization that
surrounds itself by a network of other organizations
to which it regularly outsources noncore functions.
&  Y
V

 A highly flexible, temporary
organization formed by a group of companies that
join forces to exploit a specific opportunity.
 $  V Satellite organizations affiliated
with core companies that have helped them
develop.
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Organizational designs in which two or more
organizations come together.

  V
  A form of organizational
diversification in which an organization
(usually a very large, multinational one) adds
an entirely unrelated business or product to
its organizational design.

 
  V

  A type of
interorganizational design in which two or
more separate companies combine forces to
develop and operate a specific business.



 
 ! 
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  V
 A type of strategic
alliance in which two similar companies from the
same or similar industries pool their resources to
receive a benefit that would be too difficult or
expensive for either to obtain alone.
ñ & '' !  V
&  Strategic alliances
between companies in different industries that
have complementary capabilities.
ñ  &  V
 Strategic alliances in which
several companies work together to fulfill
opportunities that require the capabilities of one
another.
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