Organization design, effectiveness and innovation Flashcards
Why should you care about organizational charts?
- Shows the organizational structure
- Your name will be on there somewhere
What is span of control?
The average number of reporting to a manager. Sum up all the reporting people, and average it too. As tech improves, it pushes the span go up. The span of control would be higher, if all the jobs are very similar. This is how organization measure its efficiency.
“Unity of Command” principle
classic principle of management that is used in many hierarchical organizations, such as the military, government agencies, and corporations. Unity of command holds that an employee should only be answerable to one person.
Line vs. Staff positions
Line- operations side of the business
Staff- office, corporate sides of the business
Hierarchy of authority
a way to structure an organization using different levels of authority and a vertical link, or chain of command, between superior and subordinate levels of the organization. Higher levels control lower levels of the hierarchy.
Division of labor
The specialization of cooperating individuals who perform specific tasks and roles.
Centralized vs. decentralized decision making
Centralized- President Drake decides vacation dates
Decentralized- President Drake let everyone college of different major decide which holiday to be off
Reporting relationships- solid vs. dotted line
Solid- The boss is the formal boss; the can fire and hire you
Dotted- A supervisor, informally.
Developmental positions vs. Continuity positions
D: For people who can learn something really fast, high potential people.
C: For people who is really good at their current job, high professionals.
Function type of organization structure
Ex. Finance, HR, logistic, accounting and etc
Divison type of organization structure
Geographies and/or products and/or customers, etc.
Subcategories:
Ex. Old GM, separates by Chevy, and each product line.
Matrix type of organization structure
For each functional decided group, theres division decided positions. Brand 1,2,3,4 for Finance. So you have 3 bosses, 2 dotted lining bosses with brands, a solid line with finance supervisor.
Horizontal type of organization structure
A form of matrix
Hollow type of organization structure
Outsources selected processes.
Ex. Starbucks hire other company to do product testing do to lack of resources.
Modular type of organization structure
Outsources selected components or modules.
Ex. When you are assembly something, you can hire companies for assemble different parts.
Virtual type of organization structure
Uses technology
Which types of organization structure companies uses the most?
Most of them use a hybrid of those functions
What is a learning organizations?
Organizations want you to develop yourself, go to training and classes; have learning as its structure.
What is mechanistic vs. organic organizations?
Mechanistic- decision is highly controlled
Organic- A little bit more structure, you can participate in decision making, ex. Google.
What are different types of organizational effectiveness criteria?
- Goal accomplishment (Did you hit your targets?)
- Internal processes (Internal efficiency; hospitals uses matrix like wait time before you see the doctor)
- Strategic constituencies (Measures effectiveness by people who can impact us positively and negatively and their feeling towards us. Ex. College as donors for money to build buildings)
- Resource acquisition (Are we able to get resources? Ex. Diamond company, do they have access to diamond?)
Product vs. Process innovation
Do we want to make better products or create a better process?
Core vs. Transformational innovation
Core: Targets current customers. Ex. TimeWarner’s service like push this number, and we will call you call, so you won’t lose your waiting spot.
Transformational: Targets new customers. Ex. Phone companies, if you join us, we will pay your termination fees.
