Ch.3 - Fundamentals of Organizational Structure

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Business Administration
BUS 304
Liz Wiebe

Chapter 3 Fundamentals of Organization StructureOrganization StructureDefinition three key componentsoThey designate from formal reporting relationships including the number of levels in the hierarchy and the span of control of managerssupervisors frameworkoIdentifies grouping of individuals into departments and of departments into the total organization frameworkoIncludes the design of systems to ensure effective communication coordination and integration of efforts across departments interactionsInformationProcessing Perspective on StructureOrganizational Design to Efficiency vs Learning OutcomesoVertical Emphasis on efficiency and control is associated with specialized tasks hierarchy of authority rules and regulations formal reporting systems few teamstask forces and centralized decision making problems and decisions are funneled to top levelsoHorizontal Emphasis on learning outcomes are associated with shared tasks relaxed hierarchy few rules facetoface communication many teams and informal decentralized decision makingVertical information linkagesoLinkage extent of communication and coordination among organizational elementsoVertical Linkages used to coordinate activities between top and bottom of an organization primarily for controlLower levels carry out activities consistent with toplevel goals and top executives are informed of activities and accomplishments of lower leveloStructural devises to accomplish vertical linkagesHierarchical ReferralChain of command problems are referred to the next level in the hierarchy when solved its sent back downChapter 3 Fundamentals of Organization StructureLines in the chart are communication channelsRules and PlansRepetitious problems and decisions rules and procedures are established so employees know what to do without communication directly with managersRules and plans give standard information source eg budgetVertical Information SystemsEg periodic reports written information computerbased communications distributed to managersHorizontal information linkagesoOvercomes barriers between departments and helps coordinate among employees to achieve unity of effort and objectivesoDefined amount of communication and coordination horizontally across organizational departments often not drawn in organizational charts exchange informationoDevices to accomplish horizontal linkagesInformation Systems weakest linkage lowest cost in time and HRComputerized information systems to help solve problems opportunities etcUse to build relationships across the organization to enhance coordination across projects and geographical locationsDirect ContactHigher level of horizontal linkage directly contract those affected by a problemLiaison role located in one department but responsible for communicating and achieving coordination with another department usually only two departments such as engineering and manufacturing
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