Chap 4.pdf

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San Jose State University
BUS3 161B
Declineto State

Chapter 4 - Hardware, Software, and Mobile Systems Design Challenge 1: Differentiation Differentiation 1. Differentiation: process of dividing labor by allocating ppl an resources to tasks - establishes task and authority relationships that allow for a co to achieve goals 2. Division of Labor: degree of specialization in an organization ▯ simple co has low differentiation an division of labor, more complex as grows 3. Organizational Roles: set of task-related behaviors required of a person by their position ▯▯as co grows managers specialize in a role an hire ppl to specialize in others 4. Authority: the power to hold ppl accountable for their actions an to make decisions concerning the use of organizational resources 5. Control: the ability to coordinate an motivate ppl to work in the co's interests Organizational complexity: number of diff functions an divisions in a co ɾ Organization is broken down to Division → Function → Role - Division: subunit that consist of a collection functions/depts that sure responsibility for producing a good - Function: a subunit composed of a group of ppl working together who possess similar skills to perform job Types of Differentiation 1. Hierarchy: classification of ppl according to authority an rank 2. Vertical Differentiation: distribution of authority 3. Horizontal Differentiation: grouping of organizational tasks * Left out the 5 functions types* Design Challenge 2: Balancing Differentiation and Integration Balancing Differentiation and Integration 1. Horizontal differentiation is supposed to enable specialization an increase productivity ɾ Can lead to subunit orientation: tendency to view one's role in the perspective of the goals within one's subunit ɾ Leads to communication failure and coordination is difficult 2. Integration: coordinating tasks, functions, and divisions so they work together ɾ More integration is needed as co grows ɾ Excess differentiation/integration increases costs an time spend coordinating activities ɾ To balance mangers must develop core competences an select integrating mechanisms that foster subunit cooperation 3. Managers must decide how and how much to differentiate and integrate ɾ Guide process of differentiation so that it developed competences
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