Management chapter 7

review the structures on page

286

divisional structure aka

M-form, multidivisional, decentralized, product structure, program structure, or self-contained unit structure

collaboration

a joint effort between people from two or more departments to produce outcomes that meet a common goal that would be greater than if they worked individually

task force

a temporary team or committee designed to solve a problem involving several departments

functional structure

activities are grouped together by common function from teh bottom to the top of the organization

coordination

adjusting and synchronizing the diverse activities among different individuals and departments

chain of command

an unbroken line of authority that links all employees in an organization and shows who reports to whom

in the times of crisis or risk of company failure

authority may be centralized at the top

primary disadvantages of functional structure include

barriers that exist across departments aka communication and coordination

divisional structure advantages

by dividing employees and resources along divisional lines, the organization will be flexible and responsive to change because each unit is small; concern for customers' needs are high

because the chain of command converges at the top, the functional structure also offers a way to

centralize decision making and provide unified direction from top managers

most large school systems are highly

centralized (Central office)

organization chart delineates the

chain of command

scalar principle

clearly defined line of authority in the organization that includes ALL employees

matrix approach

combines aspects of both functional and divisional structures=dual lines of authority

staff authority is a

communication relationship

matrix approach disadvantages

confusion and frustration caused by the dual chain of command; high conflict because it pits divisional against functional goals in a domestic structure; leads to more discussion than action

divisional structure disadvantages

coordination exists within divisions but lacks greatly ACROSS divisions; organization can lose efficiency and economies

greater change and uncertainty in the environment are usually associated with

decentralization

centralization

decision authority is located near the top of the organization

decentralization

decision authority is pushed downward to lower organization levels

organization chart indicates

departmental tasks and how they fit together

most large corporations have separate divisions that perform

different tasks, use different technologies, or serve different customers

work specialization aka

division of labor

authority flows

down the vertical hierarchy

when a huge organization produces products for different markets, the divisional structure works because

each division is an autonomous business

unity of command

each employee is held responsible to only one supervisor

matrix approach advantages

effective in a complex and rapidly changing environment; makes efficient use of human resources because specialists can be transferred from one division to another

why are organizations moving from work specialization

employees are isolated, bored, and too much specialization creates separation and hinders the coordination that is essential to the organization as a whole

cross functional teams

employees from various functional departments who are responsible to meet as a team and resolve mutual problems

relational coordination

frequent, timely, problem-solving communication carried out through employee relationships of shared goals, shared knowledge, and mutual respect

the matrix supports a formal chain of command for both

functional and divisional relationships

team approach

gives managers a way to delegate authority, push responsibility to lower levels and be more flexible and responsive in a complex/global environment

managers make choices about how to use the chain of command to

group people together to perform their work

permanent teams

groups of employees who are organized in a way similar to a formal department

flat structure

has a wide span, horizontally dispersed and has fewer hierarchal levels

tall structure

has an overall narrow span and more hierarchal levels

in the matrix approach the divisional approach runs

horizontally (x) and provides coordination across departments

organizing tells us

how to do it

staff departments

include all of those that provide specialized skills in support of line departments; have an advisory relationship with line departments and typically include marketing, labor relations, research, accounting and HR

in a functional structure, innovation and change require

involvement across several departments

the dual authority structure violates the unity of command concept because

it gives equal emphasis to both functional and divisional lines of authority

when organizations face new strategic issues

managers often create new positions or departments to deal with them

the product(x) or functional(y) boss is called the

matrix boss

most organizations encourage managers to delegate authority to the lowest possible level to provide

maximum flexibility to meet customer needs and adapt ot shifts in the environment

virtual network approach

most recent approach to departmentalization; the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization

staff authority

narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise

organization chart provides

order and logic

functional structure can be thought of as departmentalization by

organizational resources because each type of functional activity represents specific resources for performing the organization's task

authority is vested in organizational positions not

people

line authority

people in management positions have formal authority to direct and control immediate subordinates

accountability

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

line departments

perform tasks that reflect the organizations primary goal and mission

project mangager

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

everyone needs to know what they are accountable for and accept the

responsibility and authority for performing it

in a divisional structure, divisions are created as self-contained units with

separate functional departments for each division; departments are duplicated across product lines

span of management aka

span of control

organizing follows

strategy

the amount of centralization or decentralization should fit the firm's

strategy

authority is accepted by

subordinates

departmentalization

the basis for grouping positions into departments and departments into the total organization

work specialization is

the degree to which organizational tasks are subdivided into separate jobs

organizing

the deployment of organizational resources to achieve strategic goals

responsibility

the duty to perform the task or activity assigned

team-based structure

the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals

authority

the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizational outcomes

when managers have responsibility for task outcomes but little authority

the job is possible but difficult

the top leader must maintain a power balance between

the matrix bosses (functional and divisional bosses)

span of management

the number of employees reporting to a supervisor

delegation

the process managers use to transfer authority and responsibility to positions below them in the hierarchy

reengineering

the radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed

organization structure

the set of formal tasks assigned to individuals; formal reporting relationships (lines of authority), design of systems to ensure effective coordination across departments

employees in each department perform only

the tasks relevant to their specialized function

the boss who oversees both the product and functional chains of command is the

top leader aka president aka big daddy ok lol

in the matrix approach, some employees may have

two supervisors simultaneously

when managers have authority exceeding responsibility they may become

tyrants, using authority to achieve frivolous outcomes

functional structure aka

unitary structure/ U-form

structure

used for reaching strategic goals and a strategy's success is determined by its ability to fit in within an organizational structure

in the matrix approach, the functional approach runs

vertically (y) and provides traditional control

organization chart

visual representation of the organization's structure

strategy tells us

what to do

divisional structure

when departments are grouped together based on similar organizational outputs