MIE 480 Chapter Notes - Chapter 12: Production Function, Human Capital, Organizational Culture
20 Jul 2020
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Document Summary
The totality of a firm"s organizational arrangements including its formal organizational structure, control systems, incentive systems, organizational culture, organization processes, and human capital. Organizational structure: the combination of the location of decision-making responsibilities, the formal division of the organization into subunits, and the establishment of integrating mechanisms to coordinate the activities of the subunits. Controls: the metrics used to measure the performance of subunits and make judgments about how well managers are running them. Incentives: the devices used to encourage desired employee behavior. Organization processes: the manner in which decisions are made and work is performed within the organization. Organization culture: the norms and value systems that are shared among the employees of an organization. People: the employees of an organization, as well as the strategy used to recruit, compensate, motivate and retain those individuals and the type of people that they are in terms of their skills, values, and orientation.
