5. Technology & Organization Structure and Culture Flashcards
What is Organization structure?
It is what an organization
looks like in terms of departments, group size, functions, coordination, hierarchy, and rules.
What is a value chain?
describes the basic process of the organization from inbound logistics to service.
What are the 5 parts of a value chain?
- Inbound logistics: Everything you need to get the raw materials in the organization.
- Operations: where the raw materials are assembled into
something concrete. - Outbound logistics: Transport, storage
- Marketing & sales
- Service: This is the aftersales service such as customer
feedback.
How do you make sure every part of the value chain gets done? 4 points
- Firm infrastructure
This is everything that makes sure you can do everything (e.g., the buildings, the management structure, finance). - Human resources: The people who work in the organization.
- Technology: This is necessary to make sure that people can communicate with each other.
- Procurement (raw materials)
What are 3 main dimensions that you can use to classify the structure of an organization?
- Departmentalization
- Centralization vs. de-centralized decision making
- Formalization & Standardization
What is departmentalization?
Dividing an organization into departments or divisions.
What are the 3 types of departmentalization?
- Functional: Split by function (e.g., marketing, production).
- Divisional: Split by geography, product, or market.
- Matrix Structure: Combines functional and divisional approaches
What is centralized vs. decentralized decision-making?
- Centralized: Decisions made at the top of the organization (top-down).
- Decentralized: Decisions made at lower levels (bottom-up).
What are the 2 spans of control for centralized vs. decentralized decision-making?
- Tall Structure: High span of control, hierarchical.
- Flat Structure: Low span of control, more flexible.
What are formalization and standardization in an organization? 3 points
- Formalization: Explicit procedures, rules, and policies to guide behavior.
- Standardization: Uniformity of activities across the organization.
- control vs coordination (flexibilaty)
What are the two extreme’s of formalization and standardization in an organization?
- Machine Bureaucracy (Mechanistic): Centralized, formal, hierarchical. Focus on control.
- Professionalism (Organic):
Decentralized, flat, flexible, informal.
Focus on coordination.
Why is organizational culture important? 2 points
- Culture works as a control strategy for organization
- It is also important when work is boring
What are 3 control strategies?
- Market-Based: Work based on pay (supply & demand).
- Bureaucracy: Control via rules and structure.
- Clan: Control via shared values and beliefs (culture).
What does organizational culture need to align with? 2 points
- Internal Structure: Culture must match how the organization is set up.
- External Environment: Culture must adapt to market conditions.
What 2 things does culture consist of?
- Beliefs & values (learned unconsciously)
- Practices, norms, and artifacts (how we do things)
