| autonomous subunit | A unit that has all the resources and decision-making power required to run its operation daily.
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| centralization | The concentration of decision-making authority at a high level in a management hierarchy.
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| controls | Metrics used to measure the performance of subunits and to judge how well managers are running those subunits.
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| decentralization | Vesting decision-making authority in lower-level managers or other employees.
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| delayering | Reducing the number of layers in a hierarchy.
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| flat hierarchies | Organizations with few layers of management.
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| functional structure | A structure that follows the obvious division of labor within the firm, with different functions focusing on different tasks.
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| geographic structure | A structure in which a firm is divided into different units on the basis of geography.
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| horizontal differentiation | The formal division of the organization into subunits.
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| incentives | A factor, monetary or nonmonetary, that motivates individuals to pursue a particular course of action; also, a device used to encourage and reward appropriate employee behavior.
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| influence costs | The loss of efficiency caused by deliberate information distortion for personal gain within an organization.
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| integrating mechanisms | Mechanisms for coordinating subunits.
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| knowledge network | A network for transmitting information within an organization based on informal contacts between managers within an enterprise and on distributed information systems.
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| matrix structure | An organization with two overlapping hierarchies.
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| multidivisional structure | A structure in which a firm is divided into different divisions, each of which is responsible for a distinct business area.
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| organization architecture | The totality of a firm's organization, including formal organization structure, control systems, incentive systems, organizational culture, and people.
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| organization structure | The location of decision-making responsibilities in the firm, the formal division of the organization into subunits, and the establishment of integrating mechanisms to coordinate the activities of subunits.
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| organizational culture | The values and assumptions shared within an organization.
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| people | The employees of an organization, the strategy used to recruit, compensate, motivate, and retain those individuals, and the type of people they are in terms of their skills, values, and orientation.
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| span of control | The number of direct reports a manager has.
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| tall hierarchies | Organizations with many layers of management.
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| vertical differentiation | The location of decision-making responsibilities within a structure.
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