MGM101H5 Chapter 8: MGM101 Ch. 8

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Parveen Gill

Document Summary

Organization architecture: totality of a firm"s organization, including formal organizational structure, control systems, organizational culture, and people. Organization structure includes 3 aspects: location of decision-making responsibilities, formal division of the organization into subunits, establishment of integrating mechanisms to coordinate the subunits" activities. Controls: metrics used to measure the performance of subunits and judge how well managers are running them. People: human capital of an organization; not just the employees but the strategies used to recruit, compensate, motivate, and retain these employees and the type of people they are in terms of their skills, values, etc. Vertical differentiation: location of decision-making responsibilities within a structure; Horizontal differentiation: formal division of the organization into subunits. Centralization: the concentration of decision-making authority at a high level in management hierarch. Pros: top management can become overburdened when decision-making authority is centralized, motivational research favours decentralization. Autonomous subunit: a unit that has all the resources and decision-making power required to run its operation daily.