BU398 Chapter Notes - Chapter 3: Hierarchical Organization, Network Virtualization, Jack Welch
Document Summary
Organizations use various structural alternatives to help them achieve their purpose and goals. Nearly every firm needs to undergo structural reorganization to help them meet new challenges. Three key components: designates formal reporting relationships hierarchy, span of control, groups individuals together into departments, developing the entire organization, design of systems for effective communication, coordination, integration across all departments. Structure is reflected in an organizational chart; visual representation of a whole set of underlying processes and activities in an organization at a particular point in time. Vertical linkages are designed primarily for control. Horizontal mechanisms are for coordination and collaboration, which reduces control. Organizations must be designed for both horizontal and vertical information flow, find the best combination. More vertical is built for efficiency, more horizontal is built for learning specialized tasks few teams strict hierarchy vertical reporting system centralized decision making communication among.
