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Chapter 15: Organizational Design & Effectiveness

Key Concepts:

Terms in this set (17)

four common consciously coordinated acts
1. Hierarchy of Authority
2. Division of Labor
3. Spans of Control (size, skill level, culture and managerial responsibility
4. Line-staff positions
consciously coordinated
a social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
closed system organization and open system
An open system interacts with its environment through giving and receiving information. In a closed system, interactions only happen within the specific system, which means closed systems are shut off from the outside environment, and every interaction is transmitted inside that closed system.
learning organization
proactively creates, acquires, and transfers knowledge and changes its behavior on the basis of new knowledge and insights
three broad categories of organizational design
1. traditional
2. horizontal
3. open
traditional design
functional, divisional, and or matrix structures, rely on vertical hierarchy and defines clear department boundaries and reporting relationships
horizontal design
relies on horizontal workflow, dissolves department boundaries and reporting relationships as much as possible
open design
leveraging technology and structural flexibility to maximize potential value through outsourcing and external collaboration 🐱‍👤
what is a matrix organization?
combines a vertical structure with an equally strong horizontal overlay
decision making importance as a contingency factor in centralized (mechanistic)
consider strategy and goals, market uncertainty, decision making processes (mechanistic and or organic),
technology,
size
this works best when the envirorment is stable and certain
mechanistic
organic contingency factors
flexible networks of multi talented individuals who perform a variety of task
decentralized decision making
important decisions are made by middle- and lower-level managers
works best when environment is unstable and uncertain
organic decision making
six internal characteristics that are important for an organization to have in alignment
1. strategy
2. structure
3. organizational culture
4. internal processes
5. human resources practices, policies and procedures
6. employee's human and social capital
Balanced Scorecard
translate organizational vision and strategy into compressible performance metrics
measures financial perspective, customer perspective, internal business process perspective like innovation, learning, growth and development
System Architect
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