Organization Theories and Applications Flashcards
the manner in which a management achieves the right combination of differentiation and integration of the organization’s operations, in response to the level of uncertainty in its external environment
Organizational design
are the usual, old fashioned ways
Traditional Theories
are contemporary or new design theories
Modern Theories
two main classifications of theories
traditional and modern
pertains to the usual or old-fashioned ways
Traditional
refers to contemporary or new design theories.
modern
Traditional organizational design theories include:
Simple, Functional, Divisional
This organizational design has few departments, wide spans of control, or a big number of subordinates directly reporting to a manager,
Simple
has a centralized authority figure and has very little formalization of work
Simple
usually used by companies that start out as entrepreneurial ventures
Simple
This organizational design groups together similar or related specialties.
Functional
Generally, _ departmentalization is utilized and put into practice in an entire organization. For example: A marketing firm that markets cars and related products like tires, car batteries, and accessories
functional
This organizational design is made up of separate business divisions or units, where the parent corporation acts as overseer to coordinate and control the different divisions and provide financial and legal support services.
Divisional
In team design, the entire organization is made up of work groups or teams. Its advantages include empowerment of team members and reduced barriers among functional areas. It also has disadvantages, including a clear chain of command and great pressure on teams to perform.
Team Design
refers to an organization design where specialists from different departments work on projects that are supervised by a project manager.
Matrix design
This design results in a double chain of command wherein workers have two managers
their functional area manager and their project manager
refers to an organizational design where employees continuously work on a project.
Project design
Advantage: specialists are involved in the project. Disadvantage: task and personality conflicts.
Matrix design
Advantages: flexible designs and fast decision-making. Disadvantages: complexity of assigning people to projects and tasks and personality conflicts.
Project design
