Ch. 7- Organizational Design Flashcards Preview

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Flashcards in Ch. 7- Organizational Design Deck (63):
1

organizations

how individual and firms come together to create desired outcomes - implementing is difficult

2

formal structure

key design choice leaders make and regular revisit - like architechure of building

3

organizational design

formal systems, levels, decisions and organization adopts/employs in puruit of its straegy - important to link organizational design with strategy

4

with a good organizational design, a company has

competitive edge

5

divison of labor

how work is divided up amongst employes in a firm

6

two opposing schools of thought on how tightly division and coordination should be controlled

organizers and behaviorists

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organizers

more control is warranted in organiztional design to ensure jobs are performed satisfied and efficiently; greater job stanndards and hiearchal leadership, efficiency

8

beaucratic organizaition

sub group of organizers- highly formalized, extensive rules, procedures, policies, instructions, personal surveillance of supervisors over subordinates, accpet heiarchy

9

behaviorisits

believe too much control leads to lower job satisfication, intertia, lack of creativity, support more open organizational design

10

clan approach

type of organiztional control that includes self supervising teams that are resp for set of tasks, each member is cross trained to be able to perform multiple tasks and individal goals and values completly overlap with orgnizational avalues; self regulating characteristic of its employees,; clans need low turnover, garunteed employement

11

organizational structure

is impacted by organizational design decisions about how work be divided, defined as pattern of organizational roles, relationships, procedures enabling coordination action among employees- divide up work into units by function, product or geographic region, maximize internal resource sat its disposal to be competive in marketplace while prepare for change on horizon

12

three bsaic types of organization structure firm can adopt, in order

functional, divisional, matrix

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functional form

firm divides people into units in terms of main activites neede to perform - marketing, scales, accounting... good for small businesses and busineses with limited number of p/s - easy flow of communication within firm, straightforward supervision, reduce redundancy

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benefit of functional form

functional expertise and efficiency create- competitive advantage

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problems of functional form

coordination, isolation best suteed for competitive situations, inability t deal with change in business enviornment, collaboritng may be hard, employees have narrow view of firm goals, dont see big pic, hold func accountable is had to measure contriutions

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functional form best suited for

competitive situations, efficiency/functional expertise

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functional best for which enviornemnt

stable

18

functional resource efficiency is rated at

excellent

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functional responsiveness and adaptability is rated at

poor

20

functional accountability is rated at

good

21

divisional form

groups diverse functions into separate divisons,organized around products geographies, clients with each divison run as self contained business with own profits and loss mgmt, monitred by headuarters - each divison gets cred for own sales

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product divisonal organization

each unit focused on develping and selling speicifc products

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geographic divisonal organization

each unit focused on specific geography

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client based divisional organizaton

each unit foucses only on selected lients to which theyre assigned

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divison form can include which organizations

product divisional, geographic divisonal, client based divisonal organizton

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divisonal form is organized around

output firm produces or way it goes to market istead of functions needed to produce good

27

divisional form positives

self contained unit, employee loyalty toward divison is greater, great accountability, promo based on functional experties and mgmt capabilites, coordination more fluid, easier to manage bc different function are represented within divison, greater teamwork and focus on objectives

28

divisonal form is best in which enviornemnt

heterogenous, high degrees of of uncertainty- quick response to market shifts, competitive situations, coordination needed quickly adjusting, diverse business enviornments, serve different geographic regions or diverse set of customers

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divisonal form rating in resource efficiency, responsiveness, adaptability, accountability

poor, moderate, good, excellent

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cons of divisonal form

several core functions duplicated in each ivision, prevents economies of scale from devleop, competitive behavior between divisons, divisons may act in own self interest, less functional expertise

31

matrix form

firms facing multiple pressures= overlapping units; many employees work for two plus units at once, units have own leadership can be dvisonal or functional units, focus on multiple dimensions, goal is to combine positive elements of different organization onfiguration at same time

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matrix has how many bosses

two bosses- product, functional

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pros of matrix form

enviornmental pressure derive from multiple sources, high degree of interpedence between distinct units

34

cons of matrix form

complex, confusion, competing pressures, lots of coordination need, strees, time- consuming, inefficiencyy, no more vertaical authority

35

matrix form best in which enviornment

complex

36

matrix rating resurce efficiency, responsiveness, adaptability, accountability

moderate, good, moderate, poor

37

network structure

main organization asset is people, output differs from one client to next flexbile modular schedule, includes knowledge workers

38

knoweldge workers

orgainzed to wrok as individual contributions o rbe part of work cluster providing certian expertise for organizitons - form building blocks of netwrok organizations

39

professional service organization

consulting ecosystem - span across individual organizations and eoncopass entire industry

40

project teams

brings different combo of worker,s, helps coordinate actins, can be disbursed across many different locations

41

network structure emphasizes what

informal structure

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postitives of network strucuture

quick to adapt to change, can be competitivee edge

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network system negatives

duplicated resources, lw levels of acountability, coordination and communication needed

44

network best in which enviornemnta

volatile (tense), multiple strategic pressures

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network enviornment resource efficiency, responsiveness, adaptability, accountability

good, excellent, excellent, moderate

46

decision rights

right to inititate, approve, implement, strategic/tactical decision control, who makes decisions in organization- should be given to those with best info on how to make their decisions at firm

47

delegation

process wheremanagers transfer decision rights to individual emploeyes

48

centralized org

formal strucutres controlling employee behavior top down, heiarchal fashion- often seen in func organization

49

decentralized organization

key decisions at all elvels of firm, not only at top, provides more felxiblity to threats, attract highly skilled employees

50

life cycle fo firm

start up, growth, maturity, decline

51

start up of firm

les job speciailzation, heighten coordination, broad decison right open boundaries

52

growth of firm

divison of labor, coordination mechanisms (func)

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maturity of firm

complex markets, multiple constraints tackeled (matrix()

54

mutual adaptaion

process where firms impact nature of their overarching enviornment and adapt their organizaiton in response to evolving context factors- critical with change constant- tech and fashion

55

ambidextrious

firms make effort to be efficient in current operation and embarking on exploration into future opportunities- create separate team to wrok on future opportunities while rest of firms focus on primary business - innovative, creative, can lead to isolation

56

siloed

focus remains on self and less on organization/ustomers- inwar focus

57

in many units, firms can become

siloed

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five ways to shift consumer centric design

coordination, cooperation, capbability developmet, allocate decision rgiht (clout), connection

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coordination

create structural mechanisms and processes at firm allow employees across silos to coordination acritivy to focus on creating value for customer - ensure greater coordination occurs

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cooperation

align behavior - who should collab with whom and collaborate mindset across silos- help customers; incentives, change organiztion culture

61

capability developments-

employees need new skills to deal with new activites -- revwardbehavior technical skills

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allocate deciion rights- clout

give deciison rights to those who have info; delegation decisions to customer /employement

63

connection

with external partners outsource/align with another firm; restrucutre boundaries