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
scalar principle
clearly defined line of authority in the organization that includes all employees
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
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
intangible output
services are perishable and cannot be stored in inventory
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
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
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
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
two-boss employees
-those who report to two supervisors simultaneously -resolves conflicting demands from bosses
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
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
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
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
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
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
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
responsibility
refers to the obligations people assume as part of their jobs, especially with regard to assigned work
horizontal coordination
based on work processes rather than departmental functions
departmentalization
basis for grouping positions into departments and departments into the total organization
-conflicts and dual loyalties -time devoted to meetings -decentralization -lose big picture
disadvantages to team approach
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
virtual network structure
organization subcontracts of its major functions to separate companies and coordinates from small headquarters
cost leadership strategy
strategy where organization strives for internal efficiency
formal reporting relationships
vertical lines in organizational chart represent:
