CH03-FunamentalsofOrgnizationalStructure

CH03-FunamentalsofOrgnizationalStructure - Chapter 3...

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Chapter 3: Fundamentals of Organizational Structure Organizational Structure There are three key components in the definition of organizational structure 1. Designates formal reporting relationships, including number of levels and span of control 2. Identifies the grouping together of individuals into departments 3. Design of systems to ensure effective communication, coordination, and integration of efforts The first two are the structural framework, which is vertical hierarchy. The third element pertains to the pattern of interactions among organizational employees. Information-Processing Perspective on Structure The organization should be designed to provide both vertical and horizontal information flow as necessary to accomplish the organizations overall goals. If the structure does not fit the information requirements of the organization, people will either have little information or will spend time processing information that is not vital to their tasks. Vertical linkages are designed primarily for control; horizontal linkages are designed for coordination and collaboration. Organizational can choose whether to emphasize vertical communication and control, or toward a contemporary learning organization, which emphasizes horizontal communication and coordination. An emphasis on efficiency and control is associated with specialized tasks, a strict hierarchy of authority and rules, vertical reporting systems, few teams or task forces, and centralized decision making, which means problems and decisions are funneled to top levels of the hierarchy for resolutions. Emphasis on learning is associated with shared tasks, a horizontal hierarchy, few rules, face-to-face communication, many teams and task forces, and informal, decentralized decision making. Vertical Information Linkages Linkage is defined as the extent of communication and coordination among organizational elements. Vertical linkages are used to coordinate activities between the top and bottom of an organization, and are designed primarily for control. Employees at the bottom should have consistent goals, by rules, plans, and formal management information systems. Hierarchical Referral The lines of organization chart act as communication channels. If there is an unknown problem you go up a level, and then come back down when solved. Rules and Plans A rule or procedure can be established so employees know how to respond without communicating directly with their managers. The most common plan is a “budget” Vertical Information Systems Include periodic reports, written information, and computer based communication Horizontal Information Linkages Horizontal linkage refers to the amount of communication and coordination horizontally across organizational departments. Information Systems
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CH03-FunamentalsofOrgnizationalStructure - Chapter 3...

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