Organizational Structure and Design 5 6 7 8

The way tasks are formally arranged within a business organization.

Knowing who is responsible for what activities, allocating resources effectively, and ensuring activities work together harmoniously.

Dividing tasks into specialized roles and departments to create efficiency.

Coordinating different departments and roles to work together effectively.

The degree to which decision-making power is concentrated at the top levels of an organization.

A business model that emphasizes ethical, social, and environmental impacts.

A business approach that integrates underserved communities into its value chains.

Business strategies that create both economic value and address societal challenges.

Business models that promote recycling and reduce waste.

A business that considers economic viability, stakeholder satisfaction, and environmental sustainability.

Motives driven by achieving a specific outcome or benefit for the organization, like increased sales or cost reduction.

Motives based on building and maintaining strong relationships with stakeholders, both internal and external.

Motives guided by a sense of ethical duty and values, emphasizing responsible and ethical business practices.

Motives driven by the need to comply with regulatory requirements and avoid legal penalties.

The process of making sustainable practices a fundamental and integrated part of an organization's core operations.

A business strategy where a company enters multiple international markets simultaneously, commonly seen in companies with global ambitions from their inception.

An organizational structure where a company maintains its domestic structure but adds an export department, suitable for businesses with modest international involvement.

An organizational structure where a company establishes separate international divisions to manage operations in different regions, granting greater autonomy to regional managers.

An organizational structure where a company adapts its products and marketing strategies to the unique needs and preferences of local markets, emphasizing cultural sensitivity and localization.

An organizational structure where a company strikes a balance between global integration and local responsiveness, promoting collaboration and knowledge sharing across different regions.

The application of ethical principles and moral values to business activities, considering the impact of decisions on all stakeholders.

A situation where a company's actions have significant negative consequences for its stakeholders and society as a whole, often stemming from ethical lapses.

The process of developing a company's international strategy, including the selection of entry modes, market selection, and resource allocation.

A type of organizational structure where employees are grouped by their area of expertise or function, such as marketing, finance, or production.

A type of organizational structure where employees are grouped by the products or services they are responsible for.

A type of organizational structure where employees are grouped based on their geographic location.

A type of organizational structure that combines elements of different structures, such as functional and product departmentalization. This allows for flexibility and specialization.

A type of organizational structure that combines elements of functional and product departmentalization, creating a matrix of reporting lines. This allows for cross-functional collaboration.

Prescribed characteristics of expected behavior. This involves formalized rules and procedures.

Emerging characteristics of expected behavior. This involves more flexibility and adaptiveness.

The degree to which a task, role, or process is clearly defined and standardized.

The amount of authority or control a manager has over their subordinates.

Combining design elements in a coherent and consistent way that matches organizational contingencies.

A simple organizational structure that is often used by small businesses or startups.

Enron was an energy company based in Houston, Texas, that peaked as a Fortune 500 company known for its innovation. However, it was later revealed to have engaged in massive accounting fraud, manipulating their financial statements to hide debt and inflate profits.

Enron's aggressive culture prioritized short-term profit and stock performance, pressuring employees to achieve seemingly impossible goals. This fueled a culture of deception and risk-taking, ultimately leading to their downfall.

Executives at Enron engaged in insider trading, selling off substantial amounts of their own stock while publicly promoting the company's health. This suggests they were aware of Enron's impending problems but chose to capitalize on the situation.

Lehman Brothers was a prominent investment bank that heavily invested in subprime mortgages and other risky financial products. Their risky practices ultimately led to their downfall, contributing to the global financial crisis of 2008.

Lehman Brothers used accounting tricks to conceal the true extent of their exposure to risky investments. They manipulated their financials to appear more profitable than they actually were.

Lehman Brothers' profit-driven culture encouraged aggressive deal-making, rewarding employees with high bonuses based on their ability to close deals. This culture prioritized short-term gains over long-term stability.

Fortis, a financial services company based in Belgium, misled shareholders about its financial health. They provided false information and inaccurate financial statements, leading to a loss of trust and financial instability.

Fortis's actions resulted in significant financial consequences for investors, contributing to a broader loss of confidence in the financial sector. It also highlighted the importance of transparency and accurate reporting in financial institutions.