outside independent firms by computer connections which are used to operate as

Outside independent firms by computer connections

This preview shows page 19 - 21 out of 35 pages.

outside independent firms by computer connections, which are used to operate as if all were a single organization; virtual corporations; boundaryless organization 7. The Modular Structure: Outsourcing pieces of a product to outside firms; firm assembles product chunks, or modules, provided by outside contractors Contingency design: The process of fitting the organization to its environment Factors to consider when taking a contingency approach 1. Environment- mechanistic vs. organic; every job is broken down into small steps and automated a. Mechanistic organizations: Authority is centralized, tasks and rules are clearly specified, and employees are closely supervised- McDonalds( Tom Burns and GM Stalker) b. Organic Organization: Authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks. “loose,” good for companies that are always changing their products..cell phone companies 2. Environment- differentiation vs. integration (Paul R. Lawrence and Jay W. Lorsch) a. Differentation: When forces push the organization apart; Tendency of parts of an organization to disperse and fragment b. Integration: when forces pull the organization together; The tendency of the parts of an organization to draw together to achieve a common purpose 3. Size: The larger the organization the more mechanistic a. Organizational size: Usually measured by size of full-time employees b. Large organizations = 2000 full time workers or more c. Large organizations have more rules/mechanisms
d. Conglomerate: Large company would do business in different, quite unrelated areas 4. Technology : consists of all the tools and ideas for transforming materials, data, or labor (inputs) into goods or services (outputs) a. Joan Woodward classified firms according to technology i. Small batch technology: Custom made products made by organic organizations; often the least complex technology goods are custom-made to customer specifications in small quantities ii. Large batch Technology: Mass- produced products made by Mechanized organizations; mass production assembly line technology iii. Continuous- process: Highly routinized products made by organic organizations; highly routinized technology in which machines do all the work 5. Life cycle: 4 stages a. The Birth stage: The nonbureaucratic stage; the stage in which the organization is created b. The Youth stage: The organization is a prebureaucratic stage; a stage of growth and expansion c. The midlife stage: The organization becomes bureaucratic, a period of growth evolving into stability d. The Maturity stage: The organization becomes very bureaucratic, large, and mechanistic Unity of command: An employee should report to no more than one manager Chapter 9 Large companies such as google have found that “happy people are more productive” so they give their employees a lot more incentives. They have discovered that their biggest competitive advantage lies in its human resources— its people.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture