MGMT 466 - Chapter 11 - Organizational Structure and Controls

10 cards   |   Total Attempts: 188
  

Cards In This Set

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Organizational structure
Specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes
Structural stability
Provides capacity the firm requries to consistently and predictably manage its daily work routines
Structural flexibility
Provides the opportunity to explore competitive possibilities and then allocate resources to activities that will shape the CA the firm will need to be successful in the future; exploit current CA while developing new ones to be used in future
Organizational controls
Guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable; supported by both strategic and financial contorls
Strategic controls
Largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's CA
Financial controls
Largely objective criteria used to measure the firm's performance against previously established quantitative standards
Strategy and structure growth pattern
Simple structure -> sales growth (coordination and control problems) -> functional structure -> sales growth -> multidivisional structure
Simple structure
Structure in which the owner-manager makes all major decisions and monitors all activities while the staff serves as an extension of the manager's supervisory authority
Functional structure
Consists of a chief executive officer and a limited corporate staff, with functional line managers in dominant organizational areas such as production, acct, mktg, R&D, engineering, and HR
Mutlidivisional (M-form) structure
Consists of a corporate office and operating divisions, each operating division representing a separate business or profit center in which the top corporate officer delegates responsibilities for day-to-day operations and business-unit strategy to division managers