MGT363H5 Chapter Notes - Chapter 3: Strategic Business Unit, Virtual Team, Organizational Chart
Document Summary
They identify grouping together of employees into departments and departments into a total organization. They design systems to ensure effective communication, coordination, and integration. There is tension between horizontal and vertical mechanisms. Vertical is more traditional, horizontal is more modern. Decentralized - decision making means authority is pushed down to lower organizational levels. Vertical linkages are used to coordinate activities between the top and bottom of an organization and are designed for control. Employees should carry out activities inline with top managements goals. Hierarchal referral (chain of command) - when a problem arises it can be referred to the next level up, when answer is found it is passes down. Rules and plans - to extinguish problems from recurring, rules and procedure are put into place for the future. Vertical information systems - include reports, written info, and computer-based communication. Horizontal linkage refers to amount of communication horizontally across all departments.
