chapter 4
What is an organization?
organizations are social entities that interact with the environment through their organizational structure.
organizational structure elements
Work specialization: the degree to which work is sub-divided into separate jobs
DMS: the level of organizational hierarchy that makes decisions
LOA: Levels of those in charge
formalization: the degree to which rules, regulations and the like govern how work is performed
departmentalization: the basis that jobs will be grouped together
Contingencies of organizational stucture
Environment: customers, competitors, government, and suppliers
Technology: how inputs are used to produce product or service
org size: small = more organic
strategy: depends on the goal. If innovation is the goal, more organic
virtual org functions
outsourcing: shedding non-core functions to focus on the main objective
networking: building relationships with suppliers, competitor or distributors to meet consumer wants
virtual org pros and cons
pros:
- alternative for entrepreneurs: less start-up capital
- fast and flexible: can change resources to meet consumer demand
- cost saving: training, education, equipment
cons:
- sacrifice learning opportunities
- employee loyalty
- cannot monitor those functions