mgmt ch 10/4.3 organizational structures and job design

Divisional Design

Departments are grouped based on similar organizational outputs: customer, geography, or product. Use this structure when the target markets, geography served, or product lines are distinctly different.

Hierarchy of Authority

Each lower organizational unit is controlled by a higher one

Unity of Command

Each subordinate receives assigned duties from one superior, only (which results in the chain of command)

job crafting

Employees can then alter their carefully designed jobs by changing the physical and mental aspects of the job in either their tasks or their relationships.

Functional Departmentalization

Grouping employees into departments based on similar skills. Use when resources are tight or when high quality standards must be met.

principles of Bureaucratic Structures

Hierarchy of Authority Unity of Command Task Specialization Duties and Rights of Employees Managerial Responsibility Line Functions Staff Functions

matrix structure

Instead of having separate services in each division, a company would have one, company-wide service that serves all divisions: one IT team, one Accounting team, one Human Resources team, etc. - combines the functional and divisional structures - Two chains of command exist and some employees report to two bosses.

Task Specialization

Labor is divided based on tasks, which require specialized knowledge and skills

Line Authority

Line departments perform tasks that reflect the organization's primary goal and mission. Line authority means that people in management have formal authority to direct and control immediate subordinates.

Job Summary

One paragraph description of the position, reporting structure, and responsibilities. Used to advertise internally and externally.

Duties and Rights of Employees

Organizational rules such as policies and procedures define responsibilities and limits

Centralization

Power and decision-making is made by a few.

De-Centralization

Power and decision-making is spread out among many.

Staff Authority:

Staff departments include all those that provide specialized skills in support of line departments. Staff authority is narrower and includes the right to advise, recommend, and counsel.

paycheck cashers

come to work to make money so they can do what they actually want to do

Line Employees

contribute directly to the product or service.

Product departmentalization

creates a division for each product or product group such as a chemical company having departments for industrial chemicals, another for cosmetics and beauty products, and household cleaning products.

If a company serves many regions, a variety of different customers, or has several different products or services, it makes sense to

divide the company into similar work areas. (departmentalization)

a functional organization...

divides the various jobs by the activities (functions) the employees do at work

fulfillment seekers

do job for self satisfaction (don't want to move up)

clock punchers

don't care about/like job, no way to motivate them, they just go to work bc they feel obligated to

Chain of Command flows...

downwards, in that upper management communicates downwards, and it flows upwards, since information and some decisions also flow up to management in a higher level.

geographic structures

exist where organizations are set up to deliver a range of products within a geographic area or region

product structures

exist where the business organizes its employees according to product lines or lines of business

most businesses are organized by their...

function or by departments

most small and medium businesses use a ______________ division

functional

ladder climbers

ppl who want to move up in the company, but they want it for themselves not for the company

Line Functions

primary activity; revenue producing function

organic bureaucratic structure

relies on the ability of ppl to self-organize and make decisions without much direction such that they can adapt quickly to changing circumstances

risk takers

rule breakers, always looking for faster way to do things (good for sales, bad for manufacturing)

the five characteristics of jobs that improve employee motivation, satisfaction and performance.

skill variety task identify task significance autonomy feedback

5 elements of bureaucracy

specialization, command-and control, span of control, centralization, formalization

Cluster Organizations

structure largely consisting of work teams

Staff Functions

support or advising role; non- revenue producing activities

Job Rotation

temporary switching of job assignments (job often has a primary assignment)

what is the solution to the duplication of services in Departmentalization?

the Matrix

formalization

the degree of definition in the roles that exist throughout an organization

Job Involvement or Enrichment

the degree to which individuals identify psychologically with their work. Includes efforts to increase attachment to the work.

specialization

the degree to which ppl are organized into subunits according to their expertise

in any functional structure...

the manager will oversee all the activities that correspond to that function (marketing, manufacturing, delivery, etc.)

example of a highly formalized system

the military

span of control

the number of workers reporting directly to a manager (wider span means more employees; narrow span is fewer employees)

command-and-control

the way in which people report to one another or connect to coordinate their efforts in accomplishing the work of the organization

job analysis

tool for evaluating decisions tells you how many ppl and what expertise they need for a certain job

reciprocal interdependence

work completed by different jobs or groups working together in a back-and-forth manner

pooled interdependence

work completed by having each job or department independently contribute to the whole

sequential interdependence

work completed in succession, with one group's or job's outputs becoming the inputs for the next group or job

departmentalization

work is subdivided into departments in one of five ways: function (activity), product/service, geographic location (territory), customer classification, work flow process, or matrix.

Outsourcing

work performed by individuals or organizations outside of the company

disadvantages of Divisional Design

•Duplication of resources across divisions •Less technical depth and specialization •Poor coordination across divisions •Less top management control •Competition for corporate resources

advantages of Divisional Design

•Fast response, flexibility in an unstable environment •Fosters concern for customer's needs •Excellent coordination across functional departments •Easy pinpointing of responsibility for product problems •Emphasis on overall product and divisional goals •Development of general management skills

disadvantages of matrix design

•Frustration and confusion from dual chain of command •High conflict between two sides of matrix •Many meetings, more discussion than action •Human relations training needed •Power dominance by one side of matrix

advantages of matrix design

•More efficient use of resources than single hierarchy •Flexibility, adaptability to changing environment •Development of both general and specialist management skills •Interdisciplinary cooperation, expertise available to all divisions •Enlarged tasks for employees

advantages of Functional Departmentalization

•Permits economies of scale •Encourages efficient use of resources •Enhances the development of in-depth skills •Managers and employees are compatible because of similar training and expertise •Centralizes decision making •Provides unified direction from the top •Excellent coordination and communication •Promotes high quality technical problem-solving

disadvantages of Functional Departmentalization

•Slow response to environmental change •Delayed decision making •Produces routine, non-motivating employee tasks •Greater difficulty pinpointing problems within departments •Employees focus on department goals to the exclusion of organizational goals •Less opportunity to become groomed for top management positions because of the task specialization

the three systems of production

- Small batch and unit production - Large-batch and mass production - Continuous process production

Network approach

- The organization becomes a small, central hub electronically connected to other organizations that perform vital functions. - Departments are independent, contracting services to the central hub for a profit. - Departments can be located anywhere in the world.

Herzberg's eight characteristics of an enriched job.

- new learning -unique experience -personal accountability -control over scheduling -control over resources - direct communication authority - direct feedback - client relationships

How do you know if employees are satisfied with the job design of their position? Measure these:

- productivity - absenteeism - turn-over - employee satisfaction

formal organization

- set of relationships, responsibilities, and connections that exist across an organization - created by managers and shows up on organizational chart

informal organization

- the invisible network of interpersonal relationships that shape how people actually connect with one another to carry out their activities. - relationships btw employees and can be as powerful as the formal chart for your ability to lead others - most companies don't create informal organizational charts

Work Flow Design

A divisional design, Work Flow design separates divisions based on processes. A company might make the same product in a mass-production division and in a custom-fabrication division.

Minimum Job Requirements BFOQ - Bona fide Job Qualifications

Absolute minimum physical, educational, and knowledge skills. Used to comply with the Americans with Disabilities Act.

high achievers

ppl who want to move up in the company

Task or Assigned Responsibilities

Clearly identifies job functions, communicates performance requirements, and evaluates performance during reviews.

Managerial Responsibility

The authority and limits of the manager are clearly defined, often in a job description

Work Specialization

The degree to which organizational tasks are subdivided into individual jobs; it is also called division of labor.

Responsibility

The duty to perform a task or activity an employee has been assigned.

Accountability

The fact that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Authority

The formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

Team-based approach

The organization creates a series of teams or work groups to accomplish specific tasks and to coordinate major departments. Teams can exist from the office of the president all the way down to the shop floor.

job design

The process by which managers decide how to divide tasks into specific jobs

Cross-Functional Teams

a group of participants from several departments who meet regularly to solve ongoing problems.

mechanistic organizations are often characterized by...

a highly vertical organizational structure (presence of many levels of mgmt)

Job Characteristic Model

a method for developing an enriched job

example of a loosely structured system

a small, volunteer nonprofit

mechanistic bureaucratic structure

a strongly hierarchical form of organizing that is designed too generate a high degree of standardization and control

Hourglass Organizations

a three-layer structure with a constricted middle (or managerial) layer

Organizational Chart

a visual representation of an organization's structure.

6 types of workers

high achievers ladder climbers fulfillment seekers paycheck cashers clock punchers risk takers

organic organizations are often characterized by...

horizontal organizational structures (many individuals across the whole system are empowered to make decisions)

centralization

how to manage the flows of resources and information in an organization

Job Enlargement

increase of the number and variety of tasks within a job

project manager

is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

bureaucracy

is a rational, systematic, and precise form of organization in which rules, regulations, and techniques of control are specifically defined.

project team

is a temporary team designed to solve a short-term or specific problem involving several departments.

Organizational Structure

is the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated

what is the problem with departmentalization?

its duplication of internal services (each division has their own services)

departmentalization is use for.....

large companies

a diffuse organization distributes resources...

more broadly throughout an organizational system along with the authority to make decisions about how two use those resources.

Staff Employees

not involved with the product.

highly centralized organization concentrates resources in...

only one or very few locations, or only a few individuals are authorized to make decisions about the use of resources