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69 Cards in this Set
- Front
- Back
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Organizing |
Arranging people and resources to work toward a goal. - Involves creating a division of labor - Coordinates to achieve a common purpose |
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Organization Structure |
A system of tasks, reporting relationships, and communication linkage |
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As environments and structures change... |
...often structures must be changed too |
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A good structure |
Allocates task assignments through division of labor and provides for coordination of performance results |
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Organizational Chart |
- Describes the arrangement of work positions within an organization. - Identifies various positions and job titles as well as the lines of authority and communication between them |
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Formal Structure |
The official structure of the organization. Represented the way an organization is intended to function |
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Informal Structure |
The set of unofficial relationships among an organizations members "Shadow" organization. - It would show who talks to and interacts regularly with whom regardless of their formal titles and relationships |
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Informal Learning |
Is increasingly recognized as an important resource for organizational, it is learning that takes place as people interact informally throughout the work day and in a wide variety of unstructured situations |
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Disadvantages of Informal structures |
- Can sometimes work against the best interest of the organization as a whole - They can also be susceptible to rumour, carry inaccurate information, breed resistance to change, and even divert work efforts from important objectives |
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Major types of organization structures (3) |
- Functional Structures - Divisional Structures - Matrix Structures |
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Departmentalization |
The process of grouping together people and jobs into work units |
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Traditional Principle of organizing |
That performance gains are possible when people are allowed to specialize |
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Functional Structures |
Occur when people with similar skills and performing similar tasks are formally grouped together into work units |
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Functional Structures work best for.... |
Work well for small organization that produce only one or few products or services - stable environments |
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Advantages to Functional Structures |
- Economies of scale - Task assignment consistent with expertise and training - High quality technical problem solving - In depth training and skill development within functions - clear career paths within functions |
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Disadvantages of Functional Structures |
- Difficulties in pinpointing responsibilities for things like cost containment, product or service quality, timeliness, and innovation in response to environmental changes - Functional Chimney Problems |
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Functional Chimneys Problems |
A lack of communication and co-ordination across functions. Disadvantage to functional structures |
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Divisional Structures |
Groups together people working on the same product, in the same are, with similar customers, or in the same process. |
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Divisional structures common in... |
...complex organizations that have multiple and differential products and services, serve diverse customers, pursue diversifies strategies, and operate in various and different competitive environments |
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4 types of divisional structures |
- Product structure - Geographical Structures - Customer Structure - Process Structure |
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Advantages of Divisional Structures |
- More flexibility in responding to environmental changes - Improved coordination across functional departments - Clear points of responsibility for products or service delivery - Expertise focused on specific customer, product, and regions - Greater ease in changing size by adding or deleting divisions |
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Disadvantages of Divisional Structures |
- Can reduce economies of scale - Increase costs through the duplication of resources and efforts across divisions - Create unhealthy rivalries as divisions compete for resources and attention |
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Product Structure |
Groups together people and jobs working on a single product or service
sometimes called market structures |
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Where are product structures common |
Common enlarge organizations, may even extend into global operations |
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Geographical structures |
Groups together people and jobs performed in the same location
sometimes called area structures |
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Where are geogrphical structures common |
common in international operations, where they help to focus attention on the unique cultures and requirements of particular regions |
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Customer Structures |
Groups together people and jobs that serve the same customers or clients
sometimes called market structures |
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Where are customer structures common |
Common for complex businesses in the consumer product industries. Also useful in services |
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Process structures |
Groups jobs and activities that are part of the same processes |
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Work process |
Is a group of tasks related to one another that electively create something of value to a customer |
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Matrix structures |
Combines functional and divisional approaches to emphasize project or program teams
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Characteristics of Matrix structures |
- Is an attempt to gain advantages and minimize the disadvantages of both functional and divisional - Workers belong to two groups at same time: a functional group and a product, program, or project team - Also report to two bosses: one within the function and the other within the team - Found in multinational corporations |
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Advantages of Matrix |
- Better inter functional cooperation in operations and problem solving - Increased flexibility in adding, removing, and/or changing operations to meet changing demands - Better customer service - Better performance accountability - Improved decision making - Improved strategic management |
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Disadvantages of matrix |
- Two boss system can cause power struggles - Two boss system can be frustrating for matrix members if it creates task confusion and conflicts in work priorities |
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Team Structures |
Uses permanent and temporary cross-functional teams to improve lateral relations |
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Cross functional teams |
Brings together members from different functional departments. Intention is to break down functional chimneys problems inside organization |
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Project teams |
Are created for a particular tasks or project and disband once it is completed |
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Advantages of Team structures |
- Team assignments break down barriers - Boosts morale - Improve speed and quality of decisions - Greater sense of involvement and identification |
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Disadvantages of team structures |
- Conflicting loyalties among members to both team and functional assignment - Time management and group process - Teams spend a lot of time in meetings. Not all is productive |
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Network Structures |
Uses IT to link with networks of outside suppliers and service contractors |
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Characteristics of Network Structures |
- Make alliances with other companies - operate without the costs of owning all supporting functions - only own "core" component |
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Advantages of network structures |
- very lean and streamlined - help organizations stay cost competitive through reduced overheard and increased operating efficiency - allow organizations to internally employ outsourcing strategies and contract out specialized business function rather than maintain full-time staff to do them |
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Disadvantages of network structures |
- More complex the business or mission, more complex the networks will be - May be difficult to control and coordinate all - if one fails to deliver, all fails
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Boundaryless organizations |
Elimantes internal boundaries among parts and external boundaries with the external environment.
Viewed as a combination of the the team and network structures |
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Key requirements for boundaryless organizations |
- Absence of hierarchy - Empowerment of team members - Technology utilization - Acceptance of impermanence - Knowledge sharing |
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Virtual Organization |
Is a shifting network of strategic alliance that are engaged as needed |
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Up-side down pyramid |
Puts customers at the top, served by workers whose managers support them |
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Organizing Trends |
- Shorter chains of command - Less unity of command - Wider span of control - More delegation and empowerment - Decentralization and centralization - Reduced use of staff |
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Chain of command |
Links all persons with successively high levels of authority. |
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As organization grow in size |
They get taller with more levels of management to add to their chain of command. |
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Disadvantages of tall organizations with long chains of command |
This increases overhead costs, decrease communication and access between top and other levels, can greatly slow decision making and can lead to a loss of contact with the client or customer |
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The two boss system is violation of |
Unity of command principle |
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Span of control |
Is the number of persons directly reporting to a manager |
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Narrow span of control |
When only few people are under a managers immediate supervisions |
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Wide span of control |
Manager supervises many people |
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Span of control principle |
There is a limit to the number of people one manager can effectively supervise |
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Flat structures |
Have wider spans of control, few levels of management |
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Tall structures |
Have narrow spans of control; they have many levels of management |
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When span of control decreases |
cost increases |
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When span of control increases |
Overhead costs are reduced and workers benefit from more independence |
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Delegation |
The process of distributing and entrusting work to other persons |
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3 steps to delagation |
- Manager assigns responsibility - manager grants authority to act - Manager creates accountability |
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Responsibilty |
an expectation for the other person to perform assigned tasks |
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Authority |
Is a right to act in ways need to carry out the assigned tasks |
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Accountaiblity |
The requirement to answer to a supervisor for performance results |
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Centralization (traditional pyramid) |
Is the concentration of authority for most decisions at the top level of an organization |
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Decentralization ( new strucutures ) |
The dispersions of authority to make decisions throughout all levels of organization |
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Specialized staff |
Provide technical expertise for other parts of the organization |
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Personal staff |
Are "assistant-to" positions that support senior managers |
