Organization Flashcards
centralization
degree to which high level managers make decsions and delegate to lower levels for implementation
avoid duplication of activities
let managers make organization change
correspond with localization strategy
decentralization
degree to which lower-level managers make and implement strategic decisions motivates mid and lower level managers greater flexibility and responsiveness challenging to coordinate correspond to international strategy
functional structure
organization workers based on their basic skills: marketing, HR managment etcs
used when focused on inputs
more standardized products
cost efficient
international division structure
division that handle all international transaction
used by firms who just moved abroad
correspond with international strategy
geographical division structure
organization pased on area
no dominant product
correspond with localization strategy
product divisional structure
organization based on products
understanding tech trends, customer needs, competive forces that affect product
more flexible
might involve duplication of function
correspond with global strategy or transnational strategy
global matrix structure
overlay functional and divisional–> 1 person report to 2 bosses
combine geographic and product
virtual organization
work across space and time
dynamic arrangement among partner that efficiently adapts to market change
managers in different countries conferencing
network structure
arrange differentiated elements in patterned flows of activity that allocate resources to problem/projects in decentralized manner
neoclassical structure
emphasize coordination and cultivation rather than command and control
bureaucratic control
top down structure
information from top
some decentralization but mostly centralization
market control
split control based on area/ product
each division has a different commander
clan control
split control based on culture and source of belief
organization culture
shared meaning and belief that shape how employees interpret info/ take action
element: leadership style/values principles of management/ work climate/ ethical standard
outcome control: control outcome
division
corporate office mainly look at the financial numbers
bonus is large part, linked to quantifiable target
few transfer across division, hiring from within industry
resource: tight expenditure control
information system: aggregate financial report
behavior control: control process
less autonomous business units
corporate office: knows the business, act as coach
qualitiative measure, operation proccess is accessed
internal career paths and lateral transfer
culture: common corporate culture–> ease transfer
information system: many common systems
levers of control
belief, boundary, interactivecontrol, diagnostic control
belief system
core values
shared beliefs: basic values/purpose/direction
boudary system
avoid risks
allowed creativity within limit: clear rules/ limit, code of conduct, strategic planning system, capital budgeting system
interative control system
focusing attention on strategic uncertainties
managerial involvement in decision activities of subordinate: CEO can change the plan
debate on data, assumption, plans
face to face meeting
recurring agendas
diagnostic control system
critical performance variables
provide motivation, resouces and info: profit plans &budget, project monitoring system
brand revenue monitoring system
proccesses
manner in which decisions are made and work is performed
