Organizational Architecture

Question 1

Why is organization design a managerial tool?

Answer 1

Key concept: form follows function; design w/ purpose in mind

• affects work and information flows and helps determine who talks to whom
• directs attention to critical issues
• can change operating styles
• is linked with all other significant organizational features

Question 2

Division of Labor

Answer 2

Two Decisions:
1. how much horizontal and vertical specialization?
Horizontal= how many different activities will be performed in a particular job
vertical= extent to which conception, execution and administration of activities are combined
2. How will you “group” tasks and related work activities?

Question 3

Coordination mechanisms

Answer 3

Hierarchy= common reporting relationships
Cross-unit groups= liason groups; task forces
“Integrator” roles= e.g. product manager
Matrix structures= multiple reporting relations

Question 4

Functional structure

Answer 4

by function/ activity

Question 5

Divisional

Answer 5

by division/ output; miss out on economies of scale and collegial atmosphere. good for growth

Question 6

matrix

Answer 6

more of a web; lots of meetings political issues

Question 7

When should you re-design?

Answer 7

• when strategies change
• when work processes are redefined
• when there are cultural or political changes
• when size increases beyond the capacity of the current design
• organizational causes; problems of coordination, resource misuse, proliferation of extraorganizational units