mgmt ch 10

task force

an example would be bringing together people from engineering, sales, and marketing to create a new product. the team disbands after the product is created

horizontal coordination

based on work processes rather than departmental functions

departmentalization

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

scalar principle

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

-conflicts and dual loyalties -time devoted to meetings -decentralization -lose big picture

disadvantages to team approach

unity of command

each employee is held accountable to only one supervisor

outsourcing

farming out certain activities

relational coordination

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

cross-functional teams

furthers horizontal coordination because several departments meet regularly to solve ongoing problems of common interest

service technology

have more flexible horizontal structures

accountability, communication

in a matrix structure, a vertical hierarchical structure provides ----, while horizontal reporting relationships improve ----

unity of command

matrix structure violates ----, because employees report to more than one manager

technology, work processes

operational needs

virtual network structure

organization subcontracts of its major functions to separate companies and coordinates from small headquarters

tall structure

overall narrow span and more hierarchical levels

accountability

people with authority and responsibility are subject to reporting and justifying task outcomes to those above them

delegation

process used to transfer authority and responsibility to positions below them

responsibility

refers to the obligations people assume as part of their jobs, especially with regard to assigned work

intangible output

services are perishable and cannot be stored in inventory

cost leadership strategy

strategy where organization strives for internal efficiency

task force

temporary team designed to solve a problem involving several departments

virtual network structure

the firm subcontracts most of its major functions to separate companies and coordinates their actives from a small headquarters organization

formal reporting relationships

vertical lines in organizational chart represent:

flat structure

wide span, horizontally dispersed, has fewer hierarchical levels

disadvantages of divisional structure

-worse coordination across divisions -duplication of resources -high cost of running separate divisions -lost efficiency and economies of scale -lack of specialization, expertise, and training

-effective in complex changing environments -flexible, innovative, and adaptable -new issues raised and resolved -efficient use of human resources

advantages of matrix

staff departments

departments that provide specialized skills in support of line departments (marketing, labor relations, research, accounting, human resources)

team-based structure

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

strategic needs

environment, strategy, goals

span of control

how closely a supervisor can monitor subordinates

collaboration

joint effort between people form two or more departments to produce outcomes that meet a common goal that are typically greater than working alone

coordination

managerial task of adjusting diverse activities among different individuals and departments

project manager

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

decentralization

-decision authority is pushed downward to lower organizational levels -greater change and uncertainty

work specialization

-division of labor -employees specialize in single task -creates separation and hinders coordination

cross-functional teams

-employees from various functional departments meet as a team and resolve mutual problems -provides horizontal coordination

virtual network advantages

-flexibility -global competitiveness -can draw on worldwide resources and expertise to achieve best quality and price -litter supervision required

advantages of divisional structure

-flexible -responsive to change -high concern for customer needs -better coordination across functional departments

mass production

-standardized production runs, large volume produced, greater use of machines -high centralization -mechanistic structure

disadvantages of functional structure

-barriers across departments -communication and coordination poor -slow response to environmental changes

team approach advantages

-breaks down barriers across departments and improves coordination and cooperation -compromise -adapt to customer requests and changes -morale boost

matrix approach

-combines aspects of functional and divisional structures -improves horizontal coordination -dual lines of authority

functional structure

-u-form (unitary structure) -activities grouped together by common function from bottom to top -groups based on similar skills, expertise, work activities and resource use -each department concerned with organization as a whole -chain of command converges at top of hierarchy

continuous process production

-workflow is mechanized in a sophisticated and complex form of production technology -no starting or stopping -human operators not part of actual production -low centralization -organic structure

mechanistic system

-system with goals of cost efficiency, more stable environments -centralized -most decisions made at the top -highly specialized -clear hierarchy of authority -vertical communication flow -long chain of command

two-boss employees

-those who report to two supervisors simultaneously -resolves conflicting demands from bosses

team approach

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

organic system

-goals of innovation and flexibility occur in more uncertain environments -looser, free-flowing, adaptive -horizontal communication flow -decentralized -lower levels have more authority -broad span of management -short chain of command

permanent teams

-groups of employees organized in a way similar to a formal department -emphasis on horizontal communication and information sharing -authority pushed to lower levels -front-line employees given freedom to make decisions on their own

virtual network disadvantages

-lack of hands-on control -operations not under one roof -rely on contracts, coordination -each partner acts in self-interest -weak boundaries -uncertainty -weak employee loyalty

divisional structure

-m-form (multidivisional) -departments grouped together based on similar organizational outputs -departments smaller and focus on single product line or customer segment -chain of command converges lower in hierarchy -encourages decentralization

staff authority

-narrower than line authority -includes the right to advise, recommend, and counsel in the specialists area of expertise

advantages of functional structure

-permits economies of scale and efficient resource use -enhanced development of kills -centralizes decision making

small-batch production

-produces goods in batches of one or a few products designed to customer specification -used to make large, one of a kinds products -low centralization -organic structure

top leader

-responsible for entire matrix -oversees product and functional chains of command -maintains a power balance between two sides of matrix

more horizontal

as an organization becomes more organic, its communication flow becomes:

modular approach

common in manufacturing, this design allows companies to retain a small staff that assembles final products from components produced by outside suppliers

centralization

decision authority is located near the top of the organization

technical complexity

degree to which machinery is involved in the production to the exclusion of people

line departments

departments that perform tasks that reflect the primary goal and mission

modular approach

manufacturing company uses outside supplier to provide entire chunks of a product, which are then assembled into final product

span of management

number of employees reporting to a supervisor

line authority

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

differentiation strategy

strategy where organization attempts to develop innovative products unique to the market

mass production

this production process is used when companies manufacture large amounts of standardized products

centralization

this refers to the process of concentrating power and authority at the top levels of the organization

line authority

this type of authority comes from formal reporting relationships. it is typically held by managers who supervise departments directly related to an organization's primary goal and mission