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07: Organization (Organizational variables (Environment (Resources,…
07: Organization
Organizational variables
Size
No. of employees
No. of sites
Turnover
Goal and strategy
Companies
Utilitarian (Profit)
Normative
Ex.: University
Coercive
Ex.: Prison
University
Dressing code
Access constraints
Behaviour codes
Culture
Engineering vs Marketing
Working more is better
Working too much is bad
Environment
Resources
Governments / Regulatory agencies
Competitors
Financial institutions
Knowledge
Technology
Structural
Dimension
Organizational structure
Organizational type
Formalization
Definition
:
Level of description of procedures to follow
Standard Operating Procedures (SOP)
Full formalization:
Algorithm
No formalization:
Loose description
Specialization
Definition
:
Level of detail of activities
Level of specificity of employees
Hierarchy
Definition
Capability/Possibility to decide
Capability to access informations
Capability to control level
Links
Vertical
Command
Rules / Procedures
Horizontal
Team
Direct contact
Organizational types
Enterpreneurial
Machine bureaucracy
Mid-sized manufacturing firm
Divisionalized bureaucracy
Lot of people
Specialized people
Professional bureaucracy
Each case is different: Flexibility
Hospitals, law firms
Adhocracy
Build team on purpose
Organizational structure
Dimensions
Depth
Lower depth
Higher load on upper levels
Faster reaction
Higher depth
Slower reaction
Vertical organization
More depth
Ex.: Army
Specialized tasks
Horizontal organization
Less depth
Ex.: Catholic church
Shared tasks
Structures
Functional
Group by similar functions
Strengths
Better for few products
Allows economy of scale
In-depth knowledge
Weaknesses
Slow response time to environmental changes
Less innovation
Poor coordination across departments
Divisional
Group by product
Functions replicated
Strengths
Fast change in unstable environment
High coordination across functions
Better with more products
Weaknesses
No economy of scale
Poor coordination across product lines
Less in-depth knowledge
Geographic
Functions replicated in each area
Matrix/Multifocused
People belonging to more departments / products
Strengths
Suitable for complex decisions
Fast changee in unstable environment
Better in medium-sized organization with multiple products
Weaknesses
Frustration due to multiple bosses
Interpersonal skills needed
Need frequent meetings and conflict resolution sessions
Process/Horizontal
Group by process