MGM101H5 Lecture 9: ORGANISING
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(cid:862)organization architecture: refers to totality of fir(cid:373)"s orga(cid:374)izatio(cid:374), i(cid:374)(cid:272)ludi(cid:374)g for(cid:373)al organization structure, control system , incentive programs, culture in the organization and its people. Location of decision making responsibilities in the firm , that is , centralisation and decentralisation. Formal division of organization into subunits such as functions, product divisions and national operations. Establishment of integrating mechanisms coordinating the activities of subunits. (cid:862)organizational culture(cid:863): refers to values shared by people in the organization. Vertical differentiation: location of decision making responsibilities within the organization: numbers of layers in a hierarchy. Horizontal differentiation: formal divisions of the organisation into subunits. Vertical differentiation tells where does the decision making power in the hierarchy lies. Centralization: is concentration of power at higher level in hierarchy. Decentralization: is dispersal of decision making power from higher till lower level employees. It facilitates coordination ensuring smooth flow of activities: ensures that decisions are consistent with main goals of organization, centralization of important decisions ensures minimal duplication.
