MGM101H5 Lecture Notes - Lecture 8: Jack Welch, Flat Organization, Organizational Culture

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Organization architecture and architecture must support the strategy and operations of the firm. A crucial task of mans is to design organ architecture that make sense for market in which an enterprise competes and basic strategic positioning it is trying to achieve. Organization architecture refers to the totality of a firm"s organ, including formal organ structure, //designing structure: vertical differentiation: three dimensions control systems, incentive systems, organizational culture, and people. Controls are the metrics used to measure the performance of subunits and judge how well managers are running those subunits. Incentives are the devices used to encourage desired employee behavior. Organizational culture refers to values and assumptions that re shared by employees of organ. It can: horizontal differentiation refers to formal division of organ into subunits. The establishment of integrating mechanisms, which are mechanisms for coordinating subunits. // centralization and decentralization have a profound impact on how a firm performs. Lastly, by people we mean not just the employees.