BUS-1201 Lecture Notes - Lecture 7: Organizational Architecture, Job Design, Departmentalization
Document Summary
Organizational design is an organizational structure that results from decisions regarding job design, departmentalization, centralization of authority, and span of management. Based on an organizations" industry or customer base, their objectives may vary. Efficiency is the ability to complete a task using the minimum amount of resources. Some organizations must be efficient to keep costs low. Others have higher priorities such as safety or accuracy. Eg. mcdonald"s employees must deliver orders quickly and with little waste. Wasted time and materials eat away at profits. Eg. hospital efficiency is not the highest priority. Control is the ability to make decisions and specify how those decisions will be carried out. Some businesses require that managers retain a high level of control for quality or legal reasons. Others find that high levels of control can stifle creativity. Responsiveness is the speed at which an organization can improve its products in response to customer feedback, employee suggestions, or competitive pressures.