IB 150 Lecture Notes - Lecture 20: Management Development, Human Resource Management, Ethnocentrism
31 May 2017
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Document Summary
Organizational architecture is the totality of a firm"s organization, including. The formal division of the organization into subunits. The location of decision making responsibilities within that strcutre. Centralize (things are decided at headquarters) vs decentralized (things are decided at the specific regions) some companies need both, ex: toyota. The establishment of integrating mechanisms to coordinate the activities of subunits including cross-functional teams or pan-regional committees. Control systems - the metrics used to measure performance of subunits. Incentives - the devices used to reward managerial behavior. Structure and control systems establish decision-making responsibilities and integration mechanisms. Processes - how decisions are made and work is performed within the organization. Organizational culture - norms and values that are shared among the employees of an organization. People - the employees and the strategy used to recruit, compensate, and retain employees for their skills, values, and orientation. The elements of the organizational architecture must be internally consistent. The organizational architecture must fit the strategy.
