Glossary
Chapter 11
authority the formally granted influence of a position to make decisions, pursue goals and get resources to pursue the goals.
behavioural control measures attempt to influence employee’s actions by training individuals to share the corporate beliefs and values.
centralized decision making permits managers to achieve control over decision making by either making all decisions themselves or by requiring the decision makers to have all decisions approved before implementation.
centralized or centralization refers the extent to which decision-making functions are concentrated in the organization.
cloning achieved by establishing a set of shared values and expectations that act to guide the decision-making process.
decentralized or decentralization the extent to which functions are dispersed in the organization, either in terms of integration with other functions or geographically.
formalization occurs when a firm provides rules, procedures, guidelines, and policies that act to guide the decision-making process.
hierarchy a system of ranking and organizing things.
hierarchy control mechanism achieves cross-functional control integration through communication between senior functional managers; conflict resolved through negotiation.
horizontal complexity the number of units and subunits across an organization.
horizontal organization consists of autonomous, cross-functional work teams designed around critical processes.
integrated controlling mechanisms the extent to which rules, policies, and procedures control the organization.
keiretsu the name of the belief formed Japanese companies after the dismantling of the zaibatsu.
mechanistic model model characterized by rigidity, bureaucracy, and a strict hierarchy.
network organizational structure the structure that provides an informal method of communications within the firm.
organic model model characterized by openness, responsiveness, and lack of hierarchy, and tends to be applied in dynamic, unstable environments.
output controls formalized control systems (e.g., balance sheets, sales data, production data, product line growth, and personnel performance reviews).
systems an organized collection of parts or elements that are highly integrated in order to accomplish an overall goal.
vertical complexity where location decisions are made.