MGT 3200 : Test 2 Study Guide
Document Summary
Reasons for organizing: establish lines of authority, improve efficiency, quality, and synergy, improve communication. Organizational architecture- the totality of the firms organization, including formal organization structure, control systems, incentive systems, organization culture and people. Organization structure- the vertical and horizontal configuration of departments, authority, and jobs within a company. Includes the location of decision making responsibilities in the firm, formal division of the organization into subunits, and the establishment of integrating mechanisms to coordinate the activities of subunits. Division of labor- when the work of the organization is subdivided into small tasks to be performed by individuals. Specialization- different people or groups perform specific parts of the larger task. 3 dimensions of designing structure: horizontal differentiation the formal division of the organization into subunits. 2 components of vertical differentiation: authority- legitimate right to make decisions and tell other people what to do, formal authority- based on a formal position; e. g. board of.
