MGM101H5 Chapter Notes - Chapter 8: Organizational Architecture, Human Resource Management, Organizational Culture
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MGM101H5 Full Course Notes
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Document Summary
Organizational architecture refers to the totality of a firm"s organization including: The location of decision making responsibilities in the firm (centralized or decentralized. The formal division of an organization into subunits, such as: The establishment of integrating mechanisms to coordinate the activities of subunits. Metrics used to measure the performance of subunits and to judge how well managers are running those subunits. Values and assumptions that are shared among the employees of an organization. The strategy used to recruit, compensate, motivate and retain those individuals. The type of people they are in terms of their skills, value, and orientation. Managers need to design an organizational architecture that makes sense for the market in which an enterprise competes and the basic strategic positioning it is trying to achieve. There are three dimensions of an organizational structure. The location of decision making responsibilities within a structure (centralization or decentralization) The number of layers in a hierarchy (tall or flat)