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