ADMS 4900 Chapter Notes - Chapter 9: Vertical Integration, Reward System, Cost Leadership

• School: York University
• Department: Administrative Studies
• Course: ADMS 4900
• Professor: Kelly Thomson

Document Summary

Organizational structure formalized patterns of interactions that link a firm"s tasks, technologies, and people. ~ means of balancing two conflicting forces: need for division of tasks into meaningful groupings and need to integrate the groupings to ensure efficiency and effectiveness. ~ identifies managerial, executives and administrative organization and indicates responsibilities and hierarchical relationships. ~ influences flow of information and context and nature of human relationships. Type of structure dependent on nature and magnitude of growth. Patterns of growth of large corporations: strategy-structure relationships. Strategy and structure change with size, diversifies into new product markets, expands geographic scope. Simple structure increases sales revenue and volume of outputs over time. ~ some vertical integration so secure supply (backward integration) and distribution channels (forward integration) Functional structure concentrate efforts on increasing efficiency and enhancing operations and products. ~ allows firm to group operations in functions, departments, geographic areas. Divisional structure strategy of diversification needs to be reorganized around product line and geographic market.