systems thinking - Answers--identifying the moving parts within an organization that add
value and ensuring that these parts function together and effective and efficient whole
-how each component of an organization functions relative to the whole is the focal
point of the design process
4 categories of organizations - Answers--pyramids/hierarchies
-committees/juries
-matrix organizations
-ecologies
Pyramid/hierarchical organization - Answers--one leader who is responsible for making
all decisions that affect the organization
-This leader manages other organizational members
committees/juries - Answers-groups of peers who decide collectively, sometimes by
casting votes, on the appropriate courses of action within the organization
Matrix organizations - Answers-assign workers to more than one reporting line in an
attempt to maximize the benefit of both functional and decentralized organizational
forms
ecologies - Answers-each business unit represents an individual profit center that holds
employees accountable for the unit's profitability
Schein's Model of Organizational Culture - Answers-Level 1: Artifacts
Level 2: Values
Level 3: Basic Assumptions
,organizational charts - Answers--illustrate the structure of an organization, the
relationships and relative ranks of its business units/divisions, and the positions or roles
assigned to each unit/division
-3 categories: hierarchical, matrix and flat/horizontal
departmentalization - Answers--the basis by which an organization groups tasks
together
-There are 5 common approaches: functional, divisional, matrix, team and network
centralization - Answers--when decision-making authority is located in the upper
organizational levels
-increases consistency in the processes and procedures that employees use in
performing tasks
decentralization - Answers--when decision-making authority is located in the lower
organizational levels
-important decisions are made by middle-level and supervisory-level managers, thereby
increasing adaptability
-business units operate autonomously and have greater decision-making power
-dispersed rather than concentrated in a single, central location or authority
functional structure - Answers--a common type of organizational structure in which the
organization is divided into smaller groups based on specialized functional areas, such
as IT, finance or marketing
-coordination, supervision, and task allocation
disadvantage of a functional structure - Answers-the different functional groups may not
communicate with one another, potentially decreasing flexibility and innovation
divisional structure - Answers--a type of organizational structure that groups each
organizational function into a division - these divisions can correspond to either products
or geographies
-Each division contains all the necessary resources and functions within it to support
that product line or geography
-may be a multidivisional form
multidivisional form (m-form) - Answers-a legal structure in which one parent company
owns subsidiary companies, each of which uses the parent company's brand and name
advantage of functional structures - Answers-allows for greater operational efficiency
because employees with shared skills and knowledge are grouped together by function
advantage of divisional structures - Answers--failure of one division doesn't directly
threaten the other divisions
-In the multidivisional structure, the subsidiaries benefit from the use of the brand and
capital of the parent company
, disadvantage of divisional structure - Answers--operational inefficiencies from
separating specialized function
-For the multidivisional structure, disadvantages can include increased accounting and
taxes
matrix structure - Answers-a type of structure in which organizational individuals are
grouped simultaneously by two different operational perspectives
advantages of a matrix structure - Answers--complex and versatile, making them more
appropriate for large companies operating across different industries or geographic
regions
-more dynamic than functional management in that it allows team members to share
information more readily across task boundaries
-allows for specialization that can increase depth of knowledge
disadvantage of a matrix structure - Answers-increased complexity in the chain of
command, which can lead to a higher manager-to-worker ratio and contribute to
conflicting loyalties among employees
network structure - Answers--organizational structure viewed as less hierarchical (i.e.,
more "flat"), more decentralized, and more flexible than other structures
-managers coordinate and control relationships that are both internal and external to the
firm
-social structure of interactions
-Open communication and reliable partners (both internally and externally) are key
components
advantage of network structure - Answers--more agile than other structures
-Because it is decentralized, a network organization has fewer tiers, a wider span of
control, and a bottom-up flow of decision making and ideas
disadvantage of network structure - Answers--can lead to more complex relations in the
organization
modular structure - Answers--divides the business into small, tightly knit strategic
business units (SBUs), which focus on specific elements of the organizational process.
-Interdependencies between modules tends to be weak; however, flexibility is extremely
high
advantage of modular structure - Answers-loosely coupled structures enable
organizations to be more flexible and restructure more easily
environmental scanning - Answers--looking at external variables (political, sociocultural,
union, legislation, environment, social, economic, etc.) understanding the environment
the organization is existing in
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