Principles of management: Part 4 Organising and controlling

Organizational architecture is the organizational structure, control system, culture and human resource management system that together determine how efficiently and effectively organizational resources are used.

A formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve an organization's goal

Organizational environment, technology, strategy and human resources determine the design of oranizational structure

• the quicker the environment changes, the more problems face managers
• structure must be more flexible (i.e., decentralized authority) when environemental chane is rapid
• In contrast, if the external environment is stable, resources are readily availabe, and uncertainty is low, then less coordination and communication among people and functions are needed to obtain resources. 

• Different strategies require the use of different structures
• a differentiation strategy needs a flexible strucutre, low cost stragey may need more formal structue
• increased vertial integration or diversification also requires a more flexible structure

• the combination of 1. skills, 2 knowledge, 3 machines and 4. computers are used to design, make and distribute goods and services
• as a rule, the more complicated the technology that an organization uses, the more difficult it is to regulate or control it because more unexpected even can arise

• can be measured by:
  • task variety ist the number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs
  • task analyzability is the degree to which programmed solutions are available to people or functions to solve the problems they encounter.
• high task variety and low analyzability present many unique problems to managers
  • flexible structure works best in these conditions
• low task variety and high analyzability allows managers to rely on established procedures

• the more highly skilled its workforce, and the greater the number of employees who work together in groups or teams, the more likely an organization is to use a flexible, decentralized structure and a professional culture based on values and norms that foster employee autonomy and self-control
• flexible structures, characterized by decentralized authority and empowered employees, are well suited to the needs of hightly skilled people.