BU398 Chapter Notes - Chapter 3: Organizational Culture, Information Asymmetry, Railways Act 1921
Document Summary
Reflected in the organization chart a visual representation of a whole set of underlying activities and processes in an organization at a particular point in time. Organizations should be designed to provide both vertical and horizontal information flow as necessary to accomplish the organization"s overall goals. Organizations must choose whether they want to be centralized and efficiency-oriented (vertical) or decentralized and learning-oriented (horizontal). Vertical linkages are used to coordinate activities between the top and bottom of an organization, and are designed primarily for control of the organization. Hierarchical referral if a problem can"t be solved it is passed up to the next level, when it is solved it is passed back down, here the lines of command act as lines of communication. Rules and plans exists so that employees can use them as a reference without having to directly communicate with their manager. Vertical information systems include periodic reports, written information, and computer-based communications distributed to managers.