OTD CH 4 superficial Flashcards
Term structure
stable relationship among parts of a system or entity
Examples of organizations with bureaucracy
governments, university, religious institution, large aid organizations (Red Cross).
How does the modern perspective define organizational social structure?
division of labor, hierarchy of authority, and formalized rules and procedures. These are core aspects of Webers bureaucracy
What are departments?
Functional units (purchasing, production, marketing) Grouping work into units is called departmentalization.
What are divisions?
Here there is division along product lines (consumer products, international sales)
What does organizational hierarchy define?
Formal reporting relationships (vertical communication)
scalar principle
when each position in an organization is subordinate to only one other person (form of hierarchy)
The most highly placed individuals gather information to direct control over individuals throughout the organization
formalization
extent to which explicit rules, regulations, policies, and procedures govern organizational activities
Indicators of formalization
written policies, handbooks, job descriptions, operations manual, organization charts, and the use of management systems (management by objectives MBO), PERT and supply chain management
PERT
program evaluation review techniques
Which position do leaders in decentralized organizations take in?
They inspire and support. Decision-making is done by many members of the organization together.
Differentiation
vertical (hierarchy) or horizontal (division of labor in departments)
Integration
Extent to which activities are coordinated across the organization using accountability, rules and procedures, liaison rules, cross-functional teams, or direct contact.
Centralization
Extent to which authority to make decisions concentrates at top levels of the organization
Standardization
Extent to which standard procedures govern the organizations operations and activities rather than individuals using their judgement and initiative to respond to events as they arise
Specialization
Extent to which the work of the organization is divided into narrowly defined tasks assigned to specific employees and work units.
When does a mechanistic organization outperform an organic one?
is a stable environment
Organic structure structure
structure: highly complex horizontal and vertical integration - a network of authority and control based on knowledge of the task
- decentralization
Organic structure formalization
Low formalization: tasks and responsibilities are redefined depending on situation
Organic structure (standardization?)
Mutual adjustment and redefinition of tasks and methods through joint problem-solving and interaction
Organic structure - Authority
Prestige is attached to expertise.
Organic structure - supervision?
lateral communication
simple structure
For extremely small organizations. Everyone works, to get the job done
Functional structure
- when and organization outgrows its simple structure
- maximize economies of scale
Downside Functional structure
- downside: goals of different unity come into conflict
- employees may develop greater loyalty to their function then to the organization as a whole. (functional silo)
Multidivisional (M-form) structure
- when an org. outgrows its functional design.
- creates multiple divisions (separate, functionally oriented, run by dedicated management team that reports to headquarter)
Multidivisional (M-form) structure role of HQ
financial controls, policy-making, long-range strategic developments, HR.
Downside Multidivisional (M-form) structure
- rarely as profitable as those using the functional design.
- M-form duplicates every function within each of its divisions.
Upside of Multidivisional (M-form) structure
- grow larger than their functional counterparts
- size leads to greater influence on their environment
- occupy more central positions in their inter-organizational network
- hire best executives
- better train future executives (because of management of divisions)
- enhanced responsiveness to needs of customers (greater focus on the businesses each division operates)
- accountability based on divisional profits
Matrix structure
- combines the efficiency of the functional design with the flexibility and responsiveness of the multidivisional form
- managers on the functional side: responsible for allocating specialists to projects
- managers on the divisional project side: responsible for overseeing specific projects
difficulty of Matrix structure
managing the conflict built into the dual lines of authority
Upside of Matrix structure
- flexibility in starting up new activities
- maximization of value of specialists. Specialists can be use among wide variety of projects at the same time to use their full potential. (M-form has to hire specialists for each division).
New organizational forms
Network organization, Supply chain and value chains, Crowdsourced organizations
Network organizations
centralized distribution channel, shared information system, liberation of decision-making, democratic management (lateral relationships among network partners.
Pro and con of Network organizations
- pro: exploitation of opportunities before competitors realize they exist
- con: economic relationships can lead to the exploitation by a network partner.
What does a member of a supply chain do?
It devotes only a portion of its total activity to the supply chain.
Crowdsourced organization
- distinguished by its use of social media
- relationships are electronically mediated (virtual organization like eBay and amazon)
organizational lifecycle theory
each phase is dominated by a different focus that leads to a crisis that threatens the organization’s survival. If successfully met, the crisis brings about a revolutionary change that moves the organization into ints next developmental phase.
organizational lifecycle theory: entrepreneurial phase
org. focused on creating and selling its products. If successful there is a need for professional management. This is because the org. becomes to complex for a single individual (leadership crisis)
organizational lifecycle theory: collectivity phase
centralized decision-making
primary concern is to manage the increased differentiation bought on by growth. A clear direction has to be established.
–> centraliztation leads to an autonomy crisis, because decision-making is missed at the level where actions needs to occur.
organizational lifecycle theory: delegation phase
- solves autonomy crisis
–> leads to control loss (crisis of control)
organizational lifecycle theory: formalization phase
bureaucracy appears.
–> crisis of red tape
organizational lifecycle theory: collaboration phase
- teamwork redistributes the over differentiated tasks
- trust is a big issue, managers need to shift their focus to inspire instead to control.
–> crisis of renewal leads to new form of organization or decline
Organizational structures as open systems
- support phase: differentiation of purchasing and sales from core production tasks.
- Maintenance phase: Addition of Accounting, personnel, facilities
- Adaptation phase: Executive decision-making, strategy, R&D, PR
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