B MGT 341 Lecture 20: 20 - Organizational Design, Effectiveness, and Innovation
Organizational Design, Effectiveness, and Innovation
Organization
• A system of consciously coordinated activities or forces of two or more persons
• Common denominators of all organizations:
o Coordination of effort
o Aligned goals
o Division of labor
o Hierarchy of authority
Organizational Systems
• Reveal basic dimensions of organizational structure
• Closed System
o A self-sufficient entity – closed to the surrounding environment
• Open System
o Depends on constant interaction with the environment for survival
Organizational Design
• The structures of accountability and responsibility used to develop and implement strategies,
and the human resource practices and information and business processes that activate those
structures
Types of Organizational Structure:
Functional
• Groups people according to the business functions they perform, for example, manufacturing,
marketing, and finance
Divisional
• Employees are segregated into organization groups based on similar products or services,
customers or clients, or geographic regions
Matrix
• Combines a vertical structure with an equally strong horizontal overlay
• Generally combines functional and divisional chains of command to form a grid with two
command structures
Horizontal
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Document Summary
Organization: a system of consciously coordinated activities or forces of two or more persons, common denominators of all organizations, coordination of effort, aligned goals, division of labor, hierarchy of authority. Organizational systems: reveal basic dimensions of organizational structure, closed system, a self-sufficient entity closed to the surrounding environment, open system, depends on constant interaction with the environment for survival. The structures of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures. Functional: groups people according to the business functions they perform, for example, manufacturing, marketing, and finance. Divisional: employees are segregated into organization groups based on similar products or services, customers or clients, or geographic regions. Matrix: combines a vertical structure with an equally strong horizontal overlay, generally combines functional and divisional chains of command to form a grid with two command structures.
