Chap 11 Flashcards
What is organizational design?
The process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization.
What are the key components of organizational designs?
structure, culture, and control
What is the goal of design?
an organization that allows managers to effectively translate their chosen into a realized one.
What does organizational inertia lead to?
failure of established firms when a tightly coupled system of strategy and structure experiences internal or external shifts
What are the characterization of organic organizations ?
low degree of specialization and formulation, a flat organizational structure, and decentralized decision making
What are the characterization of mechanistic organization?
a high degree of specialization and formalization along with a tall hierarchy that relies on centralized decision making
In order to gain and sustain competitive advantage what must the chosen organizational form due?
Match the firm’s business strategy
What does it mean that the strategy structure is dynamic?
it is changing in predictable pattern from a simple to functional structure, then multidivisional and matrix structure as it grows in size and complexity
What is the key success in the closed innovation model?
that the firm discovers, develops, and commercializes new products internallyh
What does mechanistic organization look like in a specialization firm?
High degree of specialization, rigid division of labor, employees focus on narrowly defined tasks
What does organic organization look like in a specialization firm?
low degree of specialization, flexible division of labor, employees focus on bigger picture
What does mechanistic organization look like in a formalization firm?
intimate familiarity with rules, policies, and processes necessary, deep expertise in narrowly defined domain required, and task specific knowledge valued
What does organic organization look like in a formalization firm?
Clear understanding of organization core competencies and strategic intent, domain expertise in different areas, generalized knowledge of how to accomplish strategic goals valued?
What does mechanistic organization look like in a centralized firm?
decision power centralized at the top, vertical communication
What does organic organization look like in a centralized firm?
distributed decision making, vertical top down and bottom up as well as horizontal communication