MGM101H5 Chapter Notes - Chapter 8: Charismatic Authority, Knowledge Network, Transformational Leadership

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Organization architecture refers to the totality of a firm"s organization, including formal organization structure, control systems, incentive systems, organizational culture, and people. Controls metrics used to measure the performance of subunits and judge how well managers are running those subunits. Incentives devices used to encourage desired employee behavior. Organizational culture values and assumptions that are shared by among the employees of an organization. If an organization is going to attain competitive advantage and maximize performance the architecture must support the strategy envisioned. A firm"s vertical differentiation determines where in its hierarchy the decision making power is concentrated e. g. are production decisions centralized in offices of upper level managers or decentralized to lower level managers. Centralization concentration of decision making authority at a high level in a management hierarchy. Decentralization vesting decision making authority in lower level managers or other employees. Arguments for centralization: centralization can facilitate co ordination.