03 - Chapter 3 Fundamentals of Organization Structure...

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Chapter 3: Fundamentals of Organization Structure Organization Structure - Definition: three key components o They designate from formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers/supervisors (framework) o Identifies grouping of individuals into departments and of departments into the total organization (framework) o Includes the design of systems to ensure effective communication, coordination, and integration of efforts across departments (interactions) Information-Processing Perspective on Structure - Organizational Design to Efficiency vs. Learning Outcomes o Vertical: Emphasis on efficiency and control is associated with specialized tasks, hierarchy of authority, rules and regulations, formal reporting systems, few teams/task forces and centralized decision making (problems and decisions are funneled to top levels) o Horizontal: Emphasis on learning outcomes are associated with shared tasks, relaxed hierarchy, few rules, face-to-face communication, many teams and informal decentralized decision making - Vertical information linkages o Linkage: extent of communication and coordination among organizational elements o Vertical Linkages: used to coordinate activities between top and bottom of an organization, primarily for control Lower levels carry out activities consistent with top-level goals and top executives are informed of activities and accomplishments of lower level o Structural devises to accomplish vertical linkages: Hierarchical Referral Chain of command, problems are referred to the next level in the hierarchy, when solved its sent back down Lines in the chart are communication channels
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Chapter 3: Fundamentals of Organization Structure Rules and Plans Repetitious problems and decisions; rules and procedures are established so employees know what to do without communication directly with managers Rules and plans give standard information source (e.g. budget) Vertical Information Systems E.g. periodic reports, written information, computer-based communications distributed to managers - Horizontal information linkages o Overcomes barriers between departments and helps coordinate among employees to achieve unity of effort and objectives o Defined: amount of communication and coordination horizontally across organizational departments (often not drawn in organizational charts) exchange information o Devices to accomplish horizontal linkages Information Systems (weakest linkage, lowest cost in time and HR) Computerized information systems to help solve problems, opportunities, etc Use to build relationships across the organization to enhance coordination across projects and geographical locations Direct Contact Higher level of horizontal linkage; directly contract those affected by a problem Liaison role: located in one department but responsible for communicating and achieving coordination with another department (usually only two departments such as engineering
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03 - Chapter 3 Fundamentals of Organization Structure...

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