chapter 6 Flashcards
org size
number of employees in the org
what guy studied
Peter Blau
what did Peter Blau say
there is an increase in complexity of org as size increases but the rate of increase lowers once a certain size is reached
what does increasing in size lead to
formalisation, standardisation, decentrilised, complexity increase
size and complexity
increasing size leads to increasing of complexity but in a decreasing rate
size and formalisation
increase of formalisation since the manager wants good behaviour
size and centralisation
tends to de centralise with the growth, SOME PARTS BECAME CENTRALISED SOME DECENTRIALISED
small org
less than 1500
large org number
2OOO
problems of large org
growth of bureaucracy, need to gather and process a lot of info to turn it into useful format, need to adapt to changing technologies and product life cycle, extend time frames for actions,knowinf where profits are coming from, difficulty in managing over a wide geographic, bounded rationality
how can you solve problems of big org
divide org into manageable parts, outsourcing, finding balance between centra and dece, structuring to facilities change(against burnout, guides, rewards), ensuring important tasks have responsible people, physically separate those area of org which undertake diff typed of work
small business problems
one owner makes major decision, not clear structure, low formalisation, flat, centralisation
diseconomies of scale
limited access to capital, materials, managing
downsizing
planned elimination of positions of jobs from technology change
why downsizing
increased competition, computerisation, technological, change of strategy, rise of outscoring
