MGM101H5 Chapter Notes - Chapter 8: Organizational Culture, Knowledge Network

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

Document Summary

Organizing architecture; totality of firm"s organization, including formal organization structure, control systems, incentive systems, organizational culture, and people. Organization structure; location of decision-making responsibilities in firm (centralized or decentralized); formal division of organization into subunits such as functions, product divisions, and national operations; and establishment of integrating mechanisms to coordinate the activities of subunits. Controls; metrics use to measure performance of subunits and to judge how well managers are running those subunits. Incentives; devices used to encourage desired employee behavior, closely tied to performance metrics. Organization culture; values and assumptions that are shared by employees of organization. People; employees of organization; strategy used to recruit, compensate, motivate, and retain those individuals; and type of people they are in terms of their skills, values, and orientation. Crucial task of managers is to design organization architecture that makes sense for market in which enterprise competes, begins with designing organization structure. Designing structure: vertical differentiation; location of decision-making responsibilities within structure.