Org development

 Org development Essay

Organizational Theory & Tendencies

Mgt 5320

Chapter 5 extra be aware: Life Cycle Stages

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Part 6: Basic principles of Business Structure

Structure includes things like the number of departments in an corporation, the period of control, and the degree to which the corporation is formalized or centralized.

Organization composition is reflected in the organization chart, as well as the three pieces that define firm structure happen to be: 1 . Formal reporting human relationships

2 . Grouping together of individuals into departments

3. Type of systems to make certain communication

Few products or services generally a central functional composition Diversified even more decentralized, divisional structure



Strengths – Allows financial systems of size w/i depts.

Enables skill development

Best lawn mowers of small to medium-sized organization

Finest with merely one or handful of products

Disadvantages - Slower response to environment changes

May cause making decisions to leading

Leads to poor side to side coordination

Restricted look at of company goals


Strengths – Suited to fast change in volatile environment

Causes client satisfaction, contact points clear

Substantial coordination around functions

Permits units to adapt to dissimilarities

Best in significant organization w/several products

Decentralizes decision making

Disadvantages - Removes economies of scale

Leads to poor coordination around product lines

Eliminates skills and specialized specialization

Makes integration/standard across product dificult


Strengths – Obtain coordination meet dual demand environment

Flexible sharing of human resources

Fitted to complex decisions and unpredictable environment

Opportunity for funct. & product skill development

Best lawn mowers of medium sized orgs. with multiple products

Weak points - Knowledge dual authority, frustrating/confusing

Participants very good interpersonal skill/extensive train

Time-consuming/freq group meetings & discord resolut

Must appreciate it and collegial associations

Needs dual stresses to maintain power balance

Vertical Information Cordons are used to synchronize activities involving the top and bottom of the organization

Hierarchical Referral. The first vertical device is a hierarchy, or perhaps chain of command.

Horizontal Information Linkage refers to the amount of communication and dexterity horizontally around organizational departments.

A task pressure is a momentary committee consists of representatives from each department affected by problems. They are an effective horizontal addition device pertaining to temporary problems.

Full-time integrator is usually a item manager or perhaps project manager or software manager and is also located beyond the department with the responsibility for coordinating several departments.

Integrators need exceptional people abilities, as they usually have lots of responsibility and small authority, and must employ expertise and persuasion to accomplish coordination.

PROJECT TEAMS tend to be the strongest lateral linkage device.


EFFICIENT GROUPING places employees collectively who carry out similar job functions or work procedures or who also bring identical knowledge or perhaps skills.

Best when environment stable, dimensions are small to moderate, and low need for lateral coordination. Strong points – permits economies of scale. Some weakness – sluggish response, much less innovation

DIVISIONAL GROUPING means people are prepared according about what the organization generates, ie., same products.

Plus size associated with divisional structure. Strengths – fitted to fast enhancements made on unstable environment, and in business with multiple products or services. Some weakness – seems to lose economies of scale


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