Kinicki, Ch. 15 / Organizational Design Flashcards
balanced scorecard
a good method for understanding the criteria managers use to define org success
organizational design
an org’s fingerprint or structure and is generally built around 1 of 7 different structures
contingency design
choosing the best structure (of org design) considers how the org’s external/internal environments influencer the org
org design influences
org innovation and org effectiveness
conscious coordination
aspect of orgs, 4 common denominators of all orgs:
- coordination of effort: achieved through formulation and enforcement of policies/rules/regulations
- aligned goals: strategic goals are cascaded down through the org so employees
- division of labor: common goals are pursued by individuals performing separate but related tasks
- hierarchy of authority: chain of command, control mechanism to make sure right people to the right things at the right time
unity of command principle
Specifies that each employee should report to only one manager
the four foundational factors…
coordination of effort
aligned goals
division of labor
hierarchy of authority
enable an org to come to life and function
organization chart
graphic representation of formal authority and division of labor relationships, a family tree resemblance
4 basic dimensions of organizational 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
managers should consider four factors when establishing spans of control
organizational size: large orgs = smaller spans of control
skill level: some tasks have more managerial input, suggests a small span of control, and routine tasks do not require much supervision
organizational culture: narrow/smaller spans of control focus on internal integration and stability. wider spans are found in flexible companies that desire discretion (clan/adhocracy), and desire greater worker autonomy and participation
managerial responsibilities: senior-level executives tend to have narrower spans of control than middle managers because responsibilities are broader in scope and more complex
staff employees
Perform background research and provide technical advice and recommendations to their line managers
line managers
Generally have the authority to make decisions for their units
closed system
A self-sufficient entity
open system
Depends on constant interaction with the environment for survival
learning organization
One that proactively creates, acquires, and transfers knowledge and changes its behavior on the basis of new knowledge and insights
the process of org learning
step 1) information acquisition or scanning “process through which an org obtains information from internal and external sources
step 2) information distribution: the processes or systems that people, groups, org units use to share information among themselves
step 3) information interpretation: making sense of info the org has and distributed
step 4) knowledge integration: info is shared across different parts of the org for better info for making decisions
step 5) organizational memory: not an object, but a combined process of storing and retrieving lessons learned
how to improve org learning
- improve the 5 steps
- realize if leaders don’t support a vision that supports learning, it won’t happen
3) we can be role models and learn from failure (when an activity fails to deliver its expected results or outcomes)
organizational design
Sets 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
3 categories/eras of org design
traditional (functional, divisional, matrix types, self contained within org boundaries, mid 1800s through 1970s)
* achieved economies of scale by specializing the application of labor to specific and standardized functions)
horizontal (horizontal type, team and process oriented focus, 1980s)
* you want people to share knowledge and collaborate
open (hollow, modular, virtual types, opened beyond org’s boundaries, since mid-1990s)
* helps orgs respond rapidly to customer/market chages
7 types of org structure
functional structure: Groups people according to the business functions they perform, for example, manufacturing, marketing, and finance
divisional structure: Segregates employees into organization groups based on industries, products or services, customers or clients, or geographic regions
matrix structure: Combines a vertical structure with an equally strong horizontal overlay
horizontal structure: A structure in which teams or work groups, either temporary or permanent, are created to improve collaboration and work on common projects
hollow structure: Designed around a central core of key functions and outsources other functions to outside companies or individuals who can do them cheaper or faster
modular structure: One in which the company assembles product parts, components, or modules provided by external contractors
virtual structure: One whose members are geographically apart, usually working with e-mail and other forms of information technology, but that generally appears to customers as a single, unified organization with a real physical location
virtual structures have two types
internal and networked
contingency approach to organizational design
Organizations tend to be more effective when they are structured to fit the demands of the situation, and when the structure is aligned with internal activities and actions of the organization
managers should consider 5 key contingency factors when making decisions about org design
strategy and goals
market uncertainty
decision-making processes
technology
size
