Organizational Design Flashcards
What are the three processes of organizational design?
- Differentiation: divide work (from Frederick Taylor)
- Integration: coordinate work
- Span of control
What are the three characteristics of differentiation?
- Specialization: division of labor
- Departmentalization: divided into departments by specialization - ex: marketing/HR
- Vertical differentiation: Shape of org (up and down)
What is a tall vs wide vertical differentiation?
Tall - specialized/centralized decision making, small span of control, tight control
Wide (flat) - generalized/decentralized/large span of control, delegated control
What are the 4 characteristics to integration in order from simple to most complex?
- Rules
- Hierarchy
- Liaison
- Coordinating teams - ex: strategy team
What are the two types of span of controls?
- Traditional
2. Contingency approach
What is the traditional span of control?
4-6 workers is ideal
What is the contingency approach?
- Formalization - how many rules & how to standardize
- Interdependence – the more independent/less interdependent the larger span of control
- Worker competence - high competence = large span of control
- Supervisor competence
- Geographic dispersion - how close workers are - if they are all together there is a large span control
What is an example of the contingency approach?
EX) mass production = highly standard - large span/ interdependent large span /highly competent quickly/supervisors are normally promoted from within, so competent/ large span of control of geographic dispersion.
EX) R&D = not a lot of rules and a lot of uncertainty - all small spans of control overall
What are the three types of organizational design?
- Functional - divide up based on function
- Product
- Matrix
What are the advantages and disadvantages of functional design?
Advantages: 1. Home for specialists / grow specialists 2. Cohesive 3. Focus on function Disadvantages: 1. Difficult to grow generalists 2. Hard to coordinate functions 3. Focus on function not customer 4. Difficult to downsize
What are the advantages and disadvantages of product design?
Advantages: 1. Focus on customer 2. Grow generalists 3. Easy to add/subtract departments Disadvantages: 1. Less functional cohesion 2. Duplication of functions
What are the advantages and disadvantages of matrix design?
Advantages: 1. Simultaneous focus on customer and function Disadvantages: 1. Violates on boss - one direction 2. High potential for conflict 3. Difficult to manage 4. Expensive
none a/b/c is the best?
I guess this means that neither functional/product/matrix are the best
What are the two context variables?
- Technology
2. Strategy - mission/vision - SWOT analysis
Define, classify, and state the information processing technology for technology
Definition: machines, procedures, information Classification: Woodward Info processing: 1. Flatter structure 2. Decentralized 3. Less specialization/standardization