MGT 320 ch 2.

Geographic departmentalization

grouping jobs on the basis of their geographic regions. west, northern, central

What are the purposes of organizing?

*divide work to be done into specific departments *assign tasks and responsibilities associated with individual jobs *coordinate diverse organizational tasks *cluster jobs into units *establish relationships among individuals, groups, and departments *establish formal lines of authority *allocate and deploy organizational resources

What are six factors that create more centralization?

1.) Stable environment 2.) Capability-lower level managers are not as capable or experienced 3.)Desire-they don't want to have a say in management decisions 4.)Organization is facing a crisis or the risk of company failure 5.)Size- Company is large 6.) Effective implementation of strategies depends on managers retianing say over what happens **more centralization. Organization is facing a crisis or the risk of company failure. Ben & Jerry's was not doing as well as expected in the super premium ice-cream business was given over to Unileveer

What are four contingency factors that influence design decisions?

1.) Strategy and structure/design 2.) Size and structure/design 3.) Technology and structure/design 4.) Envrionment uncertainty and structure/design

What are 6 examples of contemporary organizational designs?

1.) Team structure 2.) Matrix structure 3.) Project structure 4.) Boundaryless organization 5.) Virtual organization 6.) Network organization

What are six factors that create more decentralization?

1.)Environment is complex, uncertain 2.) Capability-lower level managers are capable and experienced 3.)Desire-They want to have a say in decisions 4.) Corporate culture is open to allowing managers to have a say in what happens. 5.)Company is geographically dispersed 6.) Effective implementation of strategies depends on managers having flexibility and involvement to make decisions.

What is a virtual organization?

An organization that consists of a small core of full-time employees and that hires outside specialists temporarily as needed to work on projects. ex. Strawberry frog--> marketing firm, 100 employees, freelancers, virtual organization. Has worked for pepsi, stacy's pita chips, emirates ect.

What is a network organization?

An organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes. ex. sony Ericsson--leader in technology. Leading supplier in telecommunications, broad band & multimedia. ex. Call centers.

What is a boundaryless organization?

An organization whose design is not defined by, or limited to, the horizontal, vertical and external boundaries imposed by a pre-defined structure. Fluid, flexible, united. ex. GE - 20,000 people, 4 layers. vertical-ranks, hierarchies. Jack Welch. "to turn them loose, and get the management layers off their backs, the bureaucratic shackles off their feet and the functional barriers out of their way" horizontal-work specialization and departmentalization. Overall paradigm shift towards boundaryless structures.

What is functional structure?

An organizational design that groups similar or related occupational specialties together. Similar to functional departmentalization.

What is simple structure?

An organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization. At the first part of entreuprenuership. 1 decision maker, the rest do-ers.

What is project structre?

An organizational structure in which employees continuously work on projects. fluid, flexible ie. construction firms, call center. No organizational hierarchy. Managers-mentors (or) facilitators. Team compisition is adjusted according to the needs of the project.

What is team structure?

An organizational structure in which the entire organization is made up of work groups or teams. ex. Google.

What is divisional structure?

An organizational structure made up of separate, semi-autonomous units or divisions. ie. Walmart or Sam's Club.

What is matrix structure?

An organizational structure that assigns specialists from different cross-functional departments to work on one or more projects. Key people are shared. Functional & team structure brought together Costs are minimized

Organizing

Arranging and structuring work to accomplish the organization's goals.

Organizational design

Developing or changing an organization's structure.

Product departmentalization

Grouping jobs by product line (ie. cosmetics, clothing, appliances) (men's watch division, men's fragerence division, women's sports wear division)

What are organic organizations?

Has a highly adaptive and flexible design (less formalized). cross-functional teams, cross-hierarchial teams, free flow of information, wide spans of control, decentralization. -Google

What are the two types of organizational designs?

Mechanistic organizations or organic organizations.

Explain about Google.

Organic company. Ranked #1 small-big company. 777,000 applicants a year; 33% job growth; 37%. Free gormet lunches Employees are never more than 150 feet away from a well stocked panty impressive-diverse-fresh-different-healthy Fun time: bowling alley, gyms, perks, stimulating envrionment each person personalized their environment Brain expansion brilliant people visiting and giving talks and lectures. Politicians, authors, professors, environmentalists, journalists, dignitaries, monks, Nobel prize winners

Explain strategy and structure/design in terms of design decisions.

Organizations following a strategy of innovation will have a loose structure, low formalization and decentralized. Therefore, they are more organic. Organizations following a strategy of cost minimization or efficiency will have tight control, extensive work specialization, high formalization and high centralization. Strategy (goal)--determines if mechanistic or organic. Organic is innovative, mechanistic is efficiency.

What are mechanistic organizations?

Rigid and tightly controlled (more formalized). High specialization, rigid departmentalization, clear chain of command, narrow spans of control, centralization. -Military

What are the three traditional organizational designs?

Simple structure, Functional structure, & Divisional structure.

Departmentalization

The basis by which jobs are grouped together (CSU--colleges)

Responsibility

The concept of authority goes hand in hand with responsibility. Responsibility is the obligation to perform any assigned duties.

Centralization

The degree to which decision making is concentrated at the upper levels of the organization.

Decentralization

The degree to which lower-level employees provide input or actually make decisions.

Organizational structure

The formal arrangement of jobs within the organization

Chain of command

The line of authority extending from upper organizational levels to the lowest levels which clarifies who reports to whom. Two concepts in chain of command is: authority, unity of command.

Explain environment uncertainty and structure/design in terms of design decisions.

The more an organization faces an environment that is changing, the more organic it becomes.

Span of Control

The number of employees a manager can effectively and efficiently manage. The traditional view was that managers could not and should not directly supervise more than five or six subordinates. The contemporary view is that mangers with well-trained and experienced employees can function quite well with a wider span.

Authority

The rights inherent in a managerial position to tell people to tell people what to do and expect them to do it. Ex. A medical doctor has the right to tell a nurse to do a particular medical procedure and to expect them to do it.

Functional departmentalization

grouping jobs by functions. ex. marketing, finance, research and development, human resources, manufacturing, purchasing.

Explain size and structure/design in terms of design decisions.

There is considerable evidence to suggest that an organization's size affects its structure. For instance, large organizations that employ around 2,000 or more people- tend to have more specialization, and mechanization than smaller organizations. however the relationship is not exactly linear. Rather, size affects stucture at a decreasing rate. Once an organization has reached around 2,000 employees, it is already fairly mechanistic. An addition of 500 more employees won't have much impact.

Work specialization

This involves dividing work activities into separate job tasks. Division of labor has been found to increase employee productivity. Henry Ford demonstrated that work can performed more efficiently if employees are allowed to specialize. For much of the first half of the 20th century, managers viewed work specialization as an unending source of increased productivity. But, by the 1960's there came increasing evidence that a good thing can be carried too far. The point had been reached in some jobs at which the human diseconomies from specializaiton-which surfaced as: boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high turnover- more than offset the economic advantages. In such cases, productivity could be increased by enlarging, rather than narrowing the scope of job activities. ex. McDonald's, assembly lines, & call centers

What is formalization?

This refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures. Organizations don't have identical structures. They result in either mechanistic or organic.

Explain technology and structure/design in terms of design decisions.

Unit production (organic)-production of items in units or small batches, baking bread. Mass productions (mechanistic)- production in large batches, toys, mechanistic. Process production (organic)-production in continuous process. oil & gas.

Unity of command

When a person has more than one boss, it can result in confusion due to conflicting demand and priorities. The unity of command is a management principle that states that a person should report to only one manager. A person should have only one superior to whom he or she is directly responsible.

Cross-functional teams

Work teams composed of individuals from various functional specialties. This is an increasing trend. Increases communication, reduces mis-communication.

Process departmentalization

grouping jobs on the basis of product or customer flow. ex. recieving, sewing, shipping ect.

What are the five types of departmentalization

functional, product, geographic, process, customer

Customer departmentalization

grouping jobs on the basis of specific and unique customers who have common needs. ex. government, industrial, consumer ect.