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
What is the complexity, formalized (rules), span of control levels, and relations for small batch (unit) in production type? Give an example.
Low Little Large (highly comp) Few good ex. high end/housing
What is the complexity, formalized (rules), span of control levels, and relations for large batch (mass) in production type?
Moderate
High
Medium to large medium - dk wtf this means
Poor
What is the complexity, formalized (rules), span of control levels, and relations for continuous process (raw mat) in production type? Give an example.
High Moderate Medium to small many - dk wtf this means Good ex. oil & gas industry
What is the formalized (rules), centralized, shape and complexity for innovation in strategy?
Low
Decentralized
Flat
Moderate
What is the formalized (rules), centralized, shape and complexity for market differentiation in strategy?
Mod to High
Moderate centralized
Taller
Moderate to high
What is the formalized (rules), centralized, shape and complexity for cost control in strategy?
High
Centralized
Tall
Low
