-
Organization
system of consciously coordinated activities or sources of two or more people.
-
4 Common Denominators of Org.
- Coordination of effort
- Common goal
- Division of labor
- Hierarchy of authority
-
Unity of Command Principle
each employee should report to a single manager
-
Organization Chart
graphic representation of formal authority and division of labor relationships
-
Dimensions of Org. Structure
- 1)Hierarchy of Authority
- 2)Division of Labor
- 3)Spans of Control
- 4)Line and Staff Positions
-
Span of Control
the number of people reporting directly to a given manager.
- Generally, the narrower the span of
- control, the closer the supervision and the higher the administrative costs as
- a result of a higher manager-to-worker ratio.
-
Staff Personnel
- Do background research and provide technical advice, and recommendations to line
- managers.
-
Line Managers
have authority to make organizational decisions.
-
Closed System
self-sufficient entity, closed to the surrounding environment.
-
Open System
depends on constant interaction with the environment for survival
-
Learning Organization
- one that proactively creates, acquires, and transfers knowledge and that changes
- its behavior on the basis of new knowledge and insights
-
Team Mental model
- represents team members’ “shared, organized understanding and mental representation of
- knowledge about key elements of the team’s relevant environment
-
Organizational Design
- The structures of accountability and responsibility used to develop and implement
- strategies, and the human resource practices and information and business
- processes that activate those structures
-
Functional Structure
- groups people according to the business functions they perform, for example,
- manufacturing, marketing, and finance
-
Divisional Structure
groups together activities related to outputs, such as type of product or customer
-
Matrix Structure
- combines functional and divisional chains of command to form a grid with two command
- structures
-
Hollow Structure
- organization identifies core competencies and outsources noncore processes to vendors who
- can do them cheaper or faster
-
Modular Structure
Outsources parts of a product instead of processes
-
Virtual Organization
- organization identifies partners with the needed talents and negotiates an agreement in
- which the participants typically work in separate facilities, linked by
- technology
-
Contingency Approach to Org. Design
- organizations tend to be more effective when they are structured to fit the demands of the
- situation
-
Mechanistic Organizations
- Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down
- communication.
-
Organic Organizations
Flexible networks of multitalented individuals who perform a variety of tasks
-
Centralized Decision Making
key decisions made by top management
-
Decentralized Decision Making
important decisions are made by middle- and lower-level managers
-
Functional structure
can save money by grouping together ppl who need similar materials+equipment
-
Divisional Structures
increase employees' focus on customers and products
-
Successful Matrix Structure
- requires superior managers who
- communicate extensively, foster commitment and collaboration, manage conflict
- and negotiate effectively to establish goals and priorities consistent with the
- organization’s strategy
-
Getting Right Fit
Horizontal designs improve coordination and communication
- Organizations that become hollow,
- modular, or virtual can
- generate superior returns by focusing on what they do best
-
Goal Accomplishment
- Key organizational results or outputs are compared with previously stated goals or
- objectives
most widely used effectiveness criteria
-
Resource Acquisition
org. is effective if it acquires necessary factors of production
-
Internal Processes
- focuses on “what the organization must excel at” to effectively meet its financial
- objectives and customers’ expectations.
-
Strategic Constituencies Satisfaction
- Strategic constituency: any group of people with a stake in the organization’s operation
- or success.
-
Innovation
creation of something new that is USED by consumers
-
Seeds of Innovation
- 1)Hard work in a specific direction
- 2)Hard work with direction change
- 3)Curiosity and Experimentation
- 4)Wealth and money
- 5)Necessity
- 6)Combination of seeds
|
|
