Chapter 15&16 Review.docx

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University of Miami
MGT 304
George Williamson

Chapter 15- Living and working together  Vertical specialization (chain of command): a hierarchal division of labor that distributes formal authority and establishes where and how critical decisions are to be made  Span of control: number of people who report directly to you  Line units: work groups that do the actual job (ex. Production department)  Staff units: assist the line units (ex. Accounting)  Three levels of Organization Control: o Policy: broad o Procedures: guidelines o Rules: very specific  Centralization: someone is in control  Decentralization: everyone does their own thing  Horizontal specialization: (functional departmentation): establishes specific work units or groups within an organization  Departmentations o Functional departments: grouped individuals by skill, knowledge and action (most frequent) o Divisional departments: grouped by products, territories, services, clients or legal entities  Mechanistic bureaucracy: up and down, rigid, command of control (ex. BoA)  Organic bureaucracy: horizontal, more flexible (ex. Google)  Adhocracy: small version of organic, flexible, changes all the time, decentralized, extreme horizontal specialization o Adho “for this”  Conglomerate: different unrelated companies, but report to a bigger organization  Mimicry: coping something that already works (Costco, copied by sam’s club and BJs)  Vicarious le
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