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Marginal Key Terms & Definitions
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barrier-free organization  An organization design in which firms bridge real differences in culture, function, and goals to find common ground that facilitates information sharing and other forms of cooperative behavior.
boundaryless organizational designs  Organizations in which the boundaries, including vertical, horizontal, external, and geographic boundaries, are permeable.
divisional organization structure  An organizational form in which products, projects, or product markets are grouped internally.
functional organization structure  An organizational form in which the major functions of the firm, such as production, marketing, R&D, and accounting, are grouped internally.
holding company structure  An organizational form that is a variation of the divisional organizational structure in which the divisions have a high degree of autonomy both from other divisions and from corporate headquarters.
matrix organization structure  An organizational form in which there are multiple lines of authority and some individuals report to at least two managers.
modular organization  An organization in which non vital functions are outsourced, which uses the knowledge and expertise of outside suppliers, while retaining strategic control.
simple organization structure  An organization form in which the owner-manager makes most of the decisions and controls activities, and the staff serves as an extension of the top executive.
strategic business unit (SBU) structure  An organizational form in which product, project, or product market divisions are grouped into homogeneous units.







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