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MGMT_3_review - Ch 12 Organizational Design set of...

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Ch 12 Organizational Design - set of structural elements and relationship among those elements used to manage an organization Universal Perspectives 1. Bureaucratic Model- based on legitimate and formal system of authority (red tape) Govt agencies and universities (examples) a. Max Weber b. Logical/rational/efficient c. Characteristics: i. Division of labor ii. Consistent set of rules iii. Hierarchy of positions iv. Business impersonal and appropriate social distance v. Advancement in org should be on tech expertise d. Strength i. Improve efficiency ii. Help prevent favoritism e. Disadvantages i. Inflexibility and rigidity ii. Neglect of human social processes w/in org Behavioral Model- human relations movement and stresses attention to developing work grps and concern w/ interpersonal processes 1. Rensis Likert a. Leadership, motivation, communication, interactions, decision making, goal setting, control and performance goals 2. System 1 a. Bureaucratic form 3. System 4 a. Behavior model b. Interaction open and extensive 4. Strengths a. Emphasizes human behavior by stressing values of orgs employees *No one best approach to org design* Situational Influences 1. core technology- most important process that transforms inputs into outputs a. unit/small-batch- custom-made/produced in small quantities b. Large-batch/mass-production- assembly line fashion c. Continuous-process- composition of materials change 2. Environment (stable or unstable) a. Mechanistic- bureaucratic/stable environments b. Organic- unstable/unpredictable…face constant change and uncertainty c. Differentiation- org broken down into subunits d. Integration- subunits must work together 3. Organizational Size a. Number of full/full-time-equivalent employees
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4. Org Life Cycle a. Birth b. Youth c. Midlife d. Maturity Forms of Org Design 1. Functional/U-form Design a. Members/units in org are grouped by functional depts. (mktin/production) b. No one area can survive w/out the others 2. Conglomerate/H-form Design a. Made up of unrelated business functioning independently b. Unrelated diversification 3. Divisional/M-form Design a. Business in related areas w/in an orgs framework b. Related diversification 4. Matrix a. Two overlapping bases of departmentalization b. Multi-command structure Emerging Issues in Org Design 1. Team Organization- project teams w/ no underlying function hierarchy 2. Virtual organization- little/no structure…only exists in response to its needs a. Conducts most business online 3. Learning organization- continuous employee learning and development 4. International business organization- interaction w/ businesses from other countries Chapter 15 Elements on Indiv Behavior in Orgs Understanding Indiv in Orgs 1. Psychological Contract- set of expectations held by an individual w/ respect to what he/she will contribute to the org and what the org will provide in return a. Less formal and well defined b. Not written on paper 2. Contribution- what the employee offers the org 3. Inducements- pay and career opportunities/job security and status a.
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