ARE112_Sp11_Notes09_Org_Processes_02

ARE112_Sp11_Notes09_Org_Processes_02 - ARE 112 Spring 2011...

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ARE 112 – Spring 2011 Class Notes #9 – Organizational Processes #2 – Structures and IT ARE112_Sp11_Notes09_Org_Processes_02 1 I. Class Notes II. Last Time: Organizational Processes – the Horizontal Transfer pricing from the last set of notes as an example of the linkage along a chain: III. Organizational Structures – The Vertical A. Definition: 1. A formal system of tasks, responsibilities, authorities, and reporting relationships 2. that coordinate and motivate the organizational members 3. so they work together to achieve organizational goals B. A primary objective is to facilitate planning and control of organizational activities C. It is not the objective of the organizational structure to do the activities – that is “owned” by the organizational entities. D. Traditional hierarchical structure: 1. Described by organizational charts and lines of authority 2. Authority or function: a. Line – these are the operational functions you saw in the value chain b. Staff – these are the support functions you saw in the value chain 3. The hierarchy can be based on geography, function, or product line. 4. Span of control: the number of direct reports – generally from 1 to 10 5. Information technology (IT) has changed the way we manage the organization and this has changed the way we structure the organization so we will now discuss IT in some detail
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ARE112_Sp11_Notes09_Org_Processes_02 - ARE 112 Spring 2011...

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