L06: Organization Structure and Innovation CH08 Flashcards
Aspects of a formal structure
Division of work Supervisory relationships Communication Channels Major sub-units Levels of Management
Potential Advantages & Disadvantages of Informal Structures
Overcoming limits of formal structure
Informal learning
Susceptibility to rumor
Breed resistance to change
3 Types of Traditional Organizational Structures (FDM)
Functional
Divisional
Matrix Structure
Explain Functional Structures
People with similar skills are grouped together to perform similar tasks
Advantages:
- Economies of sale
- Task assignments consistent with the expertise of personnel
Disadvantages:
- Difficulty in pinpointing responsibilities
- Lack of collaboration
Explain Divisional Structures
Group people together who work on:
- Same product/process
- Serve same customers
- Same region
Advantages:
Clear points of responsibility
Disadvantages:
Duplication of resources and efforts
What are the 4 types of Divisional Structures (PGCP)
Product
Geographical
Customer
Process
Explain a Matrix structure
Combination of Functional & Divisional
Disadvantage:
Personnel answer to a Project Manager and Department manager
3 types of Horizontal Organizational Structures (TNB)
Team structures
Network Structure
Boundaryless Organizations
Explain Team Structures
Use permanent and temporary teams to solve problems
Members from different departments
Explain Network Structures
Central core linked through networks of relationships with outside contractors and suppliers
Explain Boundaryless Organizations
Eliminates internal and external barriers Requirements: Absence of hierarchy Empowerment of team members Technology utilization Acceptance of impermanence
What is organizational design?
Choosing and implementing structures that best arrange resources to serve organization objectives
Explain what is a Bureaucracy
Based on logic, order, and legitimate use of formal authority
Main difference between a Mechanistic & Organic Organizational Design
Mechanistic = FBI Organic = Startup company
What are Lawrence & Lorsch’s Findings on subsystems design
Total system structures of successful firms = challenges of environment
Subsystem structures = challenges of respective sub-environments
Subsystems in successful firms worked well with each other
