U3 Organizational Studies Flashcards
(24 cards)
organizing
Deciding how best to group organizational activities and resources
formal structure
the way that organization if configured
informal structure
the unofficial working relationships within the organization
functional division
- most common
- jobs are grouped together that involve the same type of activity
functional divisions pros
Managers need only be familiar with one set of skills, coordinating departmental activities easy
functional divisions cons
Decision making can become slow/bureaucratic in larger organizations, employees may focus too narrowly on their department
functional structure
- the bedrock of horizontal differentiation
- it is the first “structure” that organizations adapt as they grow.
Product Divisions
Grouping activities around product groups
Product Divisions Pros
easy to coordinate all activities associated with a product, quicker decision making easy to assess performance
Product Divisions Cons
too much focus on own product, higher admin costs
Geographic Divisions
Grouped based on the area served
Geographic Divisions Pros
Can tailor operations to unique demands of each market
Geographic Divisions Cons
Expensive
Customer Divisions
Grouped based on customer served or distribution channel
Customer Divisions Pros
can create groups oriented to serving unique needs of specific customers
Customer Divisions Cons
Expensive
The Silo Effect
- grouping people together means you are isolating them from the other groups
- interdivisional communication is hard, and people tend to only focus on their own group
Matrix Structure
inserting horizontal lines of communication into the structure
Matrix Structure Pros
better interdepartmental communication and coordination
Matrix Structure Cons
more bosses to report to, requires well organized information systems
types of ownership
Sole Proprietorship
Partnership
Corporation
Organization Structures of a Corporation
- Ownership of a corporation is controlled by the company’s shares or stocks
- Usually for each share, the owner get one vote
- A proxy (substitute or stand-in) contract can be used
- Proxy contracts allows the votes of one shareholder to be cast by another shareholder (given them more power)
public corporation
their shares can be purchased by anyone on one of the major stock exchanges
private corporation
- their shares are limited and can not be purchased by the public
- they are only available to owner’s family members or employees of the corporation
