An organization that has a strong commandand control system usually requires a vertical, tall organizational administrative structure. Mgmt final exam multiple choice questions chapter 11. Selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because. Organizational structure specifies the firms formal reporting relationships, procedures, controls, and authority and decisionmaking processes influencing managerial work, structure essentially details the work to be done and how that work is to be accomplished organizational controls guide the use of strategy, indicate how to compare actual results with expected results, and suggest. For a businesslevel strategy, the concern is to study primary and support activities see tables 3. Three main aspects have to be considered for designing the organization structure of an mnc. The structure should directly support the companys strategy. This is organizational structure and change, chapter 14 from the book an introduction to organizational behavior v. Define organizational structure and its basic elements.
Organizational structure and controls flashcards quizlet. The divisional structure is a type of organizational structure that groups each organizational function into a division. Organizational structure must follow strategy in order for firms to achieve superior performance. Chapter 11 chapter 11 organizational structure and controls. As much as individual and teamlevel factors influence work attitudes and behaviors, the organization s structure can be an even more powerful influence over employee actions. The structures of organizations vary and influence the ease or challenge of organizational performance and change.
This book is licensed under a creative commons byncsa 3. The results show that approximately 33% of the variance in control can be accounted for by structural characteristics, as well as by a characteristic of the environment. Organization structure and span of control refer to the. Recall from chapter 1 that organizing is defined as the process of creating an organization s structure. Organizational design, structure, control, and culture. Summary chapter 11 structure and controls with organization. Chapter 9 structuring organizations fundamentals of business. Start studying chapter designing organizational structure smartbook. Three basic types of control systems are available to executives. A large organization sells three very different items. Organizational structures and design principles of management. Reading this chapter will help you do the following. Start studying chapter 16 organizational design and structure.
Designing organizational structures flashcards quizlet. Strategic controls help evaluate how well a firm is focusing on what it takes to implement its strategies. Creating an organizational structure mastering strategic. Choose from 500 different sets of organizational structure flashcards on quizlet. Functional structures work best for firms for all of the following strategies except. For the organizational structure a, describe the 1. Many of these concepts are based on the principles developed by henri fayol. Chapter 11 solutions strategic management 10th edition. The specific effect of structural designs on performance and satisfaction i moderated by employees individual preferences and cultural norms. The fourth facet of polc, organizational control, refers to the process by which an organization influences its subunits and members to behave in ways that lead to the attainment of organizational goals and objectives. Organizations that exist in loosely defined or ambiguous environments need to distribute decisionmaking authority to employees, and thus will often feature a flat organizational structure. Effective organizing depends on the mastery of several important concepts. An organization s structure reduces ambiguity for employees. That process is important and serves many purposes see exhibit 51.
Learn organizational structure with free interactive flashcards. A company uses a combination of both strategic and financial controls. Organizational structure and control flashcards quizlet. Selecting the organizational structure and controls that effectively implement the. Chapter 7 organizational structure and change 2012 book archive. The challenge for managers is to design an organizational structure that allows employees to work effectively and efficiently.
Simple organizational structures rely on formal systems of division of labor. Creating organizational control systems mastering strategic. Pyramids and hierarchies often rely on bureaucratic practices, such as clearly defined roles and responsibilities and rigid command and control. Start studying chapter 11 organizational structure and controls. An organizational structure organizes a companys activities. Learn vocabulary, terms, and more with flashcards, games, and other study. When the us economy went from the general store on the corner to the boom of manufacturing and the industrial revolution, there was a need to look at businesses differently. Apr 02, 2020 this set of data takes the organization as the unit of analysis and seeks to uncover the relationship between structure and control. Chapter 11 definition organizational structure and controls. Centralization is the degree to which decisionmaking authority is concentrated at higher levels in an organization. Design of organization structure and control systems. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on youtube. An example organization chart is shown in figure 9.
When properly designed, controls lead to better performance by enabling the organization to execute its strategy better. Chapter 11 organizational structure and controls youtube. These divisions can correspond to either products or geographies. The best structure for any organization will depend upon who its members are, what the setting is, and how far the organization has come in its development. Ch1 ch2 ch3 ch4 ch5 ch6 ch7 ch8 ch9 ch10 ch11 ch12 ch problem. Each division contains all the necessary resources and functions within it to support that product line or geography for example, its own finance, it, and.
Organizational structure and controls lecture notes chapter introduction. Regardless of what type of structure your organization decides upon, three elements will always be there. For the flat organizational structure b, describe the 1. Organizational structure and controls 111 organizational structure and controls organizational structure.
Start studying chapter 12 designing organization structure, culture, and control. Within an organization s overall strategic plan, managers define goals for organizational departments in specific, operational terms that include standards of performance to compare with organizational activities. Summary chapter 11 structure and controls with organization free download as word doc. Learn vocabulary, terms, and more with flashcards, games, and. An organization using a pyramid or hierarchy structure has a leader who is responsible for and makes all the decisions affecting the organization. Output control focuses on measurable results within an organization. Principles of management is adapted from a work produced by a publisher who has requested that they and the original author not receive attribution. An important lesson from the chapter 11 opening case about borders is that. Specifies the work to be done and how to do it, given the firms strategy or strategies. A refers to the way that an organization formally arranges its various domestic and international units and activities and the relationships among these organizational components. Bpmn3023 strategic management created using powtoon free sign up at create animated videos and animated presentations. It makes coordination difficult in complex and novel situations.
A firms must be flexible while retaining a degree of stability. This adapted edition is produced by the university of minnesota libraries publishing through the elearning support initiative. According to alfred chandler in his book strategy and. Specifies the firms formal reporting relationships, procedures, controls, and authority and decisionmaking processes. The relationship between organizational structure and. Once an organization has set its structure, it can represent that structure in an organization chart. Start studying chapter 2 the organizational context. B helps to determine where formal power and authority will be located within the organization. Chapter 16 organizational design and structure flashcards quizlet. This is organizational structure and change, chapter 7 from the book management principles v.
Part 3 organizing chapter 5 organizational structure and design. Chapter11strategicmanagement chapter 11 organizational. Ch11im chapter 11 organizational structure and controls. Complexities and uncertainties in the business environment make it necessary to design the organization structure and management control system in such a way that the benefits earned from operating in numerous countries are higher than the costs incurred. In centralized companies, many important decisions are made at higher levels of the hierarchy, whereas in decentralized companies, decisions are made and problems are solved at lower levels by employees who are closer to the problem in question. Selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because a. When properly designed, such controls should lead to better performance because an organization is able to execute its. Chapter 12 designing organization structure, culture, and control. Organizational control is the part of the organizational structure that defines and guides the strategy usage, set goals for the performance, and state corrective measures to be taken if underperformance occurs. B managers are never able to obtain all the information necessary to make the best selection. Organizational design is one of the three tasks that fall into the organizing function in the planningorganizingleadingcontrolling polc framework. This chapter introduced the basics of controls, the process by which an organization influences its subunits and members to behave in ways that lead to attaining organizational goals and objectives. An organization s internal structure contributes to explaining and predicting behavior.
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