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Chapter 3

BUSI 3103 Chapter Notes - Chapter 3: Decision-Making, Railways Act 1921

Course Code
BUSI 3103
Rumisa Shaukat

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Organizational Structure Components: designates formal relationships, identifies grouping of
individuals, and includes design of systems
Formal Relationships: includes hierarchy of authority and span of control
Grouping of Individuals: grouping of individuals and departments
Design of Systems: ensure effective communication, coordination and integration of efforts
Information Processing Perspective: Organizations need to be designed to meet information needs
(vertical and horizontal)
Traditional Organization: Efficiency focused, vertical structure, centralized decision making
Learning Organization: few rules, many teams and task forces, horizontal structure, decentralized
decision making
Vertical Linkages: used to coordinate activities between the top and the bottom of the
organization. (HR, RP,VIS)
Hierarchical Referral: chain of command, pass problem upwards and answers downward
Rules and Plans: enable employees to solve repetitive problems and decisions with consulting the
Vertical Info Systems: strategy for increasing vertical information capacity (includes periodic
reports, written information and computer based communications)
Horizontal Linkages: the amount of communication and coordination horizontally across
organizational departments (CFIS, DC, TF, FTI, T)
Cross-Functional Info Systems: computerized info systems can enable employees throughout the
organization to routinely exchange info about problems and decisions.
Direct Contact: face to face interaction, create a special liaison role to communicate and
coordinate with another department
Task Forces: effective for temporary issues and reduce info load on vertical hierarchy
Full-Time Integrator: located outside the departments and is responsible for coordinating several
departments. (ex; project manager)
Teams: Permanent task forces and often used in tandem with a full-time integrator.
Design of Organizational Structure: Required work activities, reporting relationships, departmental
grouping options
Departmental Grouping: affects employees because they share a common supervisor and common
resources, are jointly responsible for performance, and tend to identify and collaborate with one
Functional Grouping: places together employees who perform similar functions or work processes
or who bring similar knowledge and skills to bear.
Divisional Grouping: means people are organized according to what the organization produces.
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