Learning objectives of this chapter include: Explain what is meant by organization architecture, explain the advantages and disadvantages of centralization and decentralization, discuss the pros and cons of tall versus flat structures, outline the different kinds of structure a firm can operate within and explain how strategy should determine structure,. | chapter 8 Organizing McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Explain what is meant by organization architecture. Explain the advantages and disadvantages of centralization and decentralization. Discuss the pros and cons of tall versus flat structures. Outline the different kinds of structure a firm can operate within and explain how strategy should determine structure. Describe the different integrating mechanisms managers can use to achieve coordination within a firm, and explain the link between strategy, environment, and integrating mechanisms. See Text Page: 180 Organization Architecture Organization architecture: The totality of a firm’s organization, including formal organization structure, control systems, incentive systems, organizational culture, and people. Organization structure: The location of decision-making responsibilities in the firm, the formal division of the organization into subunits, and the establishment of integrating mechanisms to coordinate the activities of subunits. Learning Objective 1: Explain what is meant by organization architecture. See Text Page: 182 Organization Architecture Controls: Metrics used to measure the performance of subunits and to judge how well managers are running those subunits. Incentives: Devices used to encourage desired employee behavior. Organizational culture: Values and assumptions that are shared among the employees of an organization. People: The employees of an organization, the strategy used to recruit, compensate, motivate, and retain those individuals, and the type of people they are in terms of their skills, values, and orientation. Learning Objective 1: Explain what is meant by organization architecture. See Text Pages: 182-183 Organization Architecture People Controls Incentives Structure Culture Learning Objective 1: Explain what is meant by organization architecture. See Text Page: 182 Designing Structure Vertical | chapter 8 Organizing McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Explain what is meant by organization architecture. Explain the advantages and disadvantages of centralization and decentralization. Discuss the pros and cons of tall versus flat structures. Outline the different kinds of structure a firm can operate within and explain how strategy should determine structure. Describe the different integrating mechanisms managers can use to achieve coordination within a firm, and explain the link between strategy, environment, and integrating mechanisms. See Text Page: 180 Organization Architecture Organization architecture: The totality of a firm’s organization, including formal organization structure, control systems, incentive systems, organizational culture, and people. Organization structure: The location of decision-making responsibilities in the firm, the formal division of the organization into .
