OP-Chapter6 Flashcards
Organization
- An organization is an open system
- Exists over extended period of time
- Goal – directed
- Structured (often with division of labor, and a hierarchy of responsibility)
Goals in an organization
- Individual vs. organizational goals
- Multifaceted and conflicting goals
- Open vs. hidden goals
- Output goals vs. system goals
Signs of too much control
- Too much emphasis on one measured goal
- Controls that are unnecessary and do not meet individual needs
Output Control
- Controls that focus on desired targets
- Allow managers to use their own methods for reaching defined targets
Process Control
- Policies, rules and procedures
- Formalization and standardization
- Quality management
Formal organization structure
- The formal structure
- Organization charts
Organigraph: Elements and Characteristics
- Sets: machines, buildings, people
- Chains: transformation processes
- Hubs: coordination centers
- Webs: grids with no center, allowing the movement of people and ideas
E.g. Mgmt.Function: - Sets: allocate
- Chains: control
- Hubs: coordinate
- Web: energize
Organigraph: Disadvantages
- Authority structures are not visualized
- Organigraph is quite arbitrary (hubs can be sets, can be chains etc.)
- It doesn’t necessarily provide more information than the matrix structure
- If used together with org charts, it can enhance transparence of processes
Formal Authority
- Centralization
- Decentralization
Vertical Specialization
- Chain of Command
- Unity of Command
- Span Control
Line and Staff Personnel
- Line personnel conduct the major business of the organization
- Staff personnel are groups that assist the line units
Horizontal Specialization
The division of labor through the formation of work units within the organization.
Departmentalization by Function
Functional departmentalization is the grouping of individuals and resources by skill, knowledge and action.
Advantages and disadvantages of functional specialization (please refer to slide 201 first )
Advantages: - Clear task assignments - Build on each other’s knowledge - Excellent training ground - Easy to explain Disadvantages: - May lead to boring and routine jobs - May have top management overload - May result in lack of focus on products / Service
Departmentalization in an international Organization: Advantages and Disadvantages (S.204)
Advantages: - Provides adaptability and flexibility - Allows for spotting of external changes - Provides for integration of personnel Disadvantages: - Does not provide pool of highly trained individuals - Can lead to a duplication of effort - Divisional goals may be given priority
Departmentalization by Matrix (please refer to page 177)
- Uses both the functional and divisional forms simultaneously
- Individuals are assigned to more than one type of unit
Advantages and disadvantages of Departmentalization by Matrix
Advantages:
- Combines strength
- Helps provide blend of technical and market emphasis
- Managers can converse with technical and marketing personnel
Disadvantages:
- Expensive
- Unity of command is lost
- Overlapping authorities and responsibilities
Mechanistic vs. Organic structures (Please refer to Slide 210 for info graphs)
- High horizontal differentiation vs. Low horizontal differentiation
- Rigid hierarchical relationships vs. collaboration (both vertical and horizontal)
- Fixed duties vs. adaptable duties
- Formalized communication channels vs. low formalization + informal communication
- Centralized decision authority vs. decentralized decision authority
