MGM101H5 Chapter : 8th Lecture (1st chapter) - Organizing

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

Document Summary

The term organization architecture refers to the totality of a firm"s organization, including formal organization structure, control systems, incentive systems, organizational culture, and people. Controls are the metrics used to measure the performance of subunits and judge how well managers are running those subunits. Incentives are the devices used to encourage desired employee behavior. For ex- ample, the incentives of a manager and his or her employees in general electric"s lighting business might be linked to the performance of that division. Organizational culture refers to the values and assumptions that are shared by the employees of an organization. Organizations are societies of individuals who come together to perform collective tasks. They have their own distinctive patterns of culture and subculture. Organizational culture can have a profound impact on how a firm performs. The various components of organization architecture are not independent of each other: each component shapes the others. An obvious example is the strategy regarding people.