MGT Chapter 8

Potential Advantages of Divisional Structures

Expertise focused on special products, customers, regions Better coordination across functions within divisions Better accountability for product or service delivery Easier to grow or shrink in size as conditions change

Functional Structure

Work units have similar skills and tasks such as finance, marketing, production and human resources.

Empowerment

a way of unlocking talent and motivation so that people can act in ways that make a performance difference. It gives them freedom to make decisions about how they work

Organization Charts

describe the formal structure and how an organization should ideally work

Divisional structures

group together people who work on a similar product, work in the same geographical region, or serve the same customers

Organic organizational designs

horizontal and adaptive; they perform best in change environments requiring adaptation and flexibility.

social network analysis

identifying the informal structures and their embedded social relationships that are active in an organization. It asks people to identify others whom they turn to for help most often, whom they communicate with regularly, and who energizes and de-energizes them

Alternative schedules

increase flexibility and increase satisfaction for employers and employees

Supervisory relationships

lines between positions show who reports to who

potential disadvantage of functional structures

managers may tend not to communicate with other functional organizations. This can be solved with cross-functional teams.

Division of work

positions and titles show work responsibilities

Good points of informal structures

problem solving, support, friendship and fill gaps in the formal structure

Bad points of informal structures

rumors, inaccurate information and resistance to change

Telecommuting

spend at least a portion of scheduled work hours at home or outside the office linked with co-workers, customers, and bosses by a variety of information technologies

Structure

system of tasks, reporting relationships, and communication that links people and positions within an organization

Formal structure

the "official" structure, or the way things are supposed to operate. It aligns positions, people, and responsibilities in the best ways

Span of control

the # of people reporting to a supervisor

Matrix Structures

uses permanent cross functional teams to try to gain the advantages of both the functional and divisional approaches

Mechanistic organizational designs

vertical and bureaucratic; they perform best in stable environments with mostly routine and predictable tasks.

Major subunits

which job titles are grouped together in work units, departments, or divisions

Functional chimney

The lack of communications in functional organizations

Organizational Design

Aligns structure to best accomplish mission and respond to external environment

Steps of Delegation

Assign responsibility—explain task and expectations to others. Grant authority—allow others to act as needed to complete task. Create accountability—require others to report back, complete task.

Network structures

Consist of a central core with networks of relationships with contractors Contractors and network partners supply essential services

Decentralization

Decision making is distributed throughout the organization.

Potential Advantages of Functional Structures

Economies of scale make efficient use of human resources. Functional experts are good at solving technical problems. Training within functions promotes skill development. Career paths are available within each function.

Delegation

Giving others the right to make decisions and take action

Departmentalization

Grouping people and jobs into a work unit

Possible advantages of network structures

Lower costs due to fewer full-time employees. • Better access to expertise through specialized alliance partners and contractors. • Easy to grow or shrink with market conditions.

Team Structures

Make use of permanent and temporary cross functional teams Improved problem solving and project management

Virtual Organizations

Network that depends on information technology to link alliances and essential services

Potential advantages of Matrix structures

Performance accountability rests with program, product, or project managers. Better communication exists across functions. Teams solve problems at their levels. Top managers spend more time on strategy.

Possible advantages of team structures

Team assignments improve communication, cooperation, and decision making. Team members get to know each other as persons, not just job titles. Team memberships boost morale, and increase enthusiasm and task involvement.

Centralization

Top management keeps strong decision-making control.

Informal structure

Unofficial but important working relationships between members.

Compressed workweek

allows a worker to complete a full-time job in less than the standard five days of 8-hour shifts.The most common form is the "4-40," that is, accomplishing 40 hours of work in four 10-hour days

Flextime

any work schedule that gives employees some choice in daily work hours

Organizing

arranges people and resources to work towards a goal