FUNDAMENTALS OF ORGANIZATION STRUCTURE
This chapter introduces basic concepts of organization structure. Structure is defined, and the students focus on how structure can help organizations achieve their goals. An information processing perspective on structure explains how organizational linkages can provide needed information capacity. Strategies for grouping organizational activities into functional, divisional, matrix, horizontal, or hybrid structures are shown. Symptoms of misalignment are discussed.
Managing by Design
Before reading the chapter, students will give their opinions on the following
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|ANSWER: Disagree. A small number of firms have tried this approach with some success, but a typical organization needs to |
|structure its work activities, positions, and departments in a way that ensures work is accomplished and coordinated to meet |
|organizational goals. Many managers try to give some consideration to employee choices as a way to keep enthusiasm high. |
The organization chart is the visual representation of underlying activities and processes. Diagrams outlining church hierarchy can be found as far back as medieval churches in Spain. Through most of the 20th century, the hierarchical, functional structure predominated. But in recent years, organizations have developed other structural designs, often aimed at increasing horizontal communication.
|BOOK MARK |
|The Future of Management |
|Gary Hamel with Bill Breen |
|Many of today’s managers are running twenty-first century organizations using ideas, practices, and structural mechanisms |
|invented a century or more ago. The author offers glimpses of what is possible when managers build structure around principles |
|of community, creativity, and information sharing rather than strict hierarchy. Hamel notes that few organizations have a |
|well-honed process for management innovation. |
Information-Processing Perspective on Structure
The structure must fit information requirements of the organization so people have neither too little information nor too much irrelevant information. Vertical linkages are designed primarily for control, in contrast to horizontal linkages that are designed for coordination and collaboration; all organizations need a mix.
|Emphasis of Vertical and Horizontal Linkages |
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