BA Chapter 10: designing organization structure

what increases with technological complexity?

the administrative ratio and the percentage of indirect labor requirements because the production process is non-routine, closer supervision is needed. more interact labor, in the form of maintenance people, is required because the Machinery is complexity and thus the indirect or direct labor ratio is high.

what provides a framework for vertical control of the organization?

the set of formal tasks in formal reporting relationships

what is an organization chart?

it portrays the characteristics of vertical structure in a visual representation of an organization structure.

what is a permanent team?

a group of employees from all functional areas permanently assigned to focus on a specific task or activity

why do some people embrace hierarchies?

it provides comfort in a chaotic world. people are naturally drawn to hierarchy because it lessens the stress of uncertainty

what does organizing define?

how to do it

what are staff departments?

they include all those that provide specialized skills and support of line departments. staff departments have a advisory relationship with line departments and typically include marketing, labor relations, research, accounting, and HR

what is a flat structure?

has a wide span, is horizontally dispersed, and has a fewer hierarchical levels.

what is small batch in unit production and specifically what is small batch production?

small batch production firms produce Goods in batches of one or few products designed to customer specification. it is close to traditional skilled craft work because human beings are large part of the process

what are the Contemporary approaches to departmentalization?

team-based and Virtual Network structures

in the bossless upside down structure, how does vision make it possible?

when people have a clear understanding of the organization's purpose, goals, and values, they can make autonomous decisions that are in the company's best interest.

the likelihood of centralization is high in organizations that engage in what kind of production?

mass production because Machinery requires centralized decision making and well-defined rules and procedures

what is a 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. organizations that fully Implement a team-based structure ensure that interactions among various teams are robust and frequent.

what structure does Disney Channel use?

it uses Geographic divisions to better address the interest of children and teens in different parts of the world

what are the three types of production technology?

1. Small batch and unit production 2. large batch and mass production 3. Continuous Process production

what is the virtual Network approach to structure?

The Firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters. an approach to departmentalization that extends the idea of horizontal coordination and collaboration beyond the boundaries of the organization. it is giving way to Loosely interconnected groups of companies with permeable boundaries

what structure does nike, jitlab, and Smart Balance use?

a virtual Network structure

what is decentralization?

decision Authority is pushed downward to lower organizational levels

why does the divisional structure promote differentiation?

each division can focus on specific products and customers, although divisions tend to be larger and less flexible than small teams.

what happens when division of labor is extensive?

employees specialize in a single task. job spans tend to be small, but they can be performed efficiently.

what is authority?

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

describe what Boeing Corporation did after fatal crashes of two 737 Max airliners?

it's centralized its safety oversight operations

what is coordination?

refers to the managerial tasks of adjusting and synchronizing the diverse activities among different individuals and departments

describe division of labor generally?

the degree to which organizational tasks are subdivided into individual jobs

when a large organization produces products or services for different markets, what structure works?

the divisional structure works because each division is a autonomous business

describe aspects of encouraging collaboration?

the physical location. managers invest in training people in the skills needed to interact with one another and resolve across departmental conflicts based on shared goals rather than emphasizing goals of their separate departments, and rewards are based on team efforts and accomplishments.

what are line departments?

they perform tasks that reflect the organization's primary goal and Mission

why have many organizations including the US Marine corps, Procter & Gamble, and zappos, undertaken structural modifications?

to attain a new strategic goals or to cope with environmental changes

what structure do the us-based realtor Zappos and China Haier group use?

versions of the team-based structure

what does strategy define?

what to do

what are the advantages of the divisional structure?

1. by dividing employees and resources along divisional lines, the organization can be more flexible and responsive to change because each unit is small and keenly attuned to its environment. 2. concern for customer needs is high because employees work on a single product line or focus on a specific Geographic or customer group 3. coordination across functional departments is better because employees are grouped together in a single location and committed to one product line or customer group

what are the disadvantages of divisional structures?

1. coordination across divisions is often poor 2. problems can occur when autonomous divisions going opposite directions. 3. duplication of resources in the high cost of running separate divisions is a disadvantage because the organization loses efficiency and economies of scale. 4. the small size of departments within each division may result in a lack of Technical specialization, expertise, and training

what are the disadvantages of a virtual Network structure?

1. lack of Hands-On control. managers do not have all operations Under One Roof and less rely on contracts, coordination, negotiation, and electronic linkages to hold things together. 2. Partners in a network necessarily acts in its own self-interest. the weekend ambiguous boundaries create higher uncertainty and greater demands of managers for defining shared goals, managing relationships, keeping people focused and motivated, and coordinating activities so that everything functions as intended 3. customer service in loyalty can suffer if Outsourcing Partners fail to perform as expected. 4. employee loyalty can weaken because they might feel like they are replaced by contract services. a cohesive corporate culture is less likely to develop, and turn over tends to be higher because the emotional commitment between organization and employee is fragile

what two things happen as an organization grows and evolves?

1. new positions in departments are added to deal with factors in the external environment or with strategy needs 2. senior managers must find a way to tie all these departments together. the formal chain of command in the supervision it provides our effective, but they are not enough. the organization needs systems to process information and enable communication among people of different departments and at different levels

what are the disadvantages of functional structures?

The primary disadvantages of the structure reflects barriers that exist across departments. 1. because people are separated into distinct departments, communication and coordination across functions are often poor, causing a slow response to Environmental changes. 3. Innovation and change require the involvement in cooperation of several departments. 4. decisions involving more than one Department May pile up at the top of the organization and be delayed.

what provides greater coordination and flexibility than a pure functional structure?

a functional structure with cross-functional teams and project managers

what does the acceptance theory of authority argue?

a manager has Authority only if subordinates choose to accept his or her commands. if subordinates refuse to obey because the order is outside their zone of acceptance, a managers Authority disappears

what is continuous process production?

and continuous process production the entire workflow is mechanized into a sophisticated and complex form of production technology because the process runs continuously, it has no starting and stopping. human operators are no part of actual production because the Machinery does all the work. human operators simply reads dials, fix machines that break down, and manage the production process.

why is the number of employees per supervisor in small batch and continuous process production lower?

because closer supervision is needed. overall small batch and continuous process firms have somewhat loose, flexible structures that are organic, whereas mass production firms have tight vertical structures that are mechanistic

why is organizing important?

because it follows strategy.

why is the problem of coordination and collaboration Amplified in the international arena?

because organizational units are differentiated not only by goals and work activities, but also by Geographic distance, time zone differences, cultural values, and perhaps language.

how do managers know whether to design a structure that emphasizes the formal, vertical hierarchy or the one that focuses on horizontal communication and collaboration?

by considering to fit the company's situation, considering factors such as organization size, strategy, and production technology, will achieve better performance. two factors are important and they are the organization strategic goals in the nature of its workflow technology external strategic needs such as the environmental conditions, strategic direction, and organizational goals, create top-down pressure for designing the organization to fit the environment and accomplished strategic goals. structural decisions taken to consideration pressures from the bottom up that is, from the technology and work processes that are performed to produce the organization's products and services

what types of Innovations work within the vertical structure and provide a means to increase horizontal communication and cooperation?

cross-functional teams, task forces, and project managers

what are the two business strategies for performance?

differentiation strategy, and which the organization attempts to develop Innovative products unique to the market. Pentecostal leadership in which the organization strives for internal efficiency.

how are the terms mechanistic and organic be used to explain structural responses to strategy and the environment?

goals of efficiency and a stable environment are associated with a mechanistic system in which the organization has a rigid, vertical, centralized structure, with most decisions being made at the top and the organization is highly specializing characterized by rules, procedures, and clear hierarchy of authority. with goals of innovation in a rapidly changing environment, the organization tends to be much looser, free flowing, and adoptive, using an organic system that is more horizontal, and decision-making Authority is decentralized in which people at lower levels have more responsibility and Authority for solving problems which enables the organization to be more fluid and adaptable to changes

what kind of structure is appropriate when the primary goal is innovation in the organization needs flexibility to cope with an uncertain environment?

horizontal team structure in which each team is small and responsive, and it has the people and resources necessary for performing its task. it enables organizations to differentiate themselves and respond quickly to the demands of a shifting environment at the expense of efficient resource use

what is a task force?

it is a temporary team or committee designed to solve a problem involving several departments or divisions. members represent their departments and share information that enable coordination.

what is collaboration?

it means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what any of the individuals or departments could achieve working alone.

what does the distinction between line Authority and staff Authority reflect?

it reflects whether managers work in line departments or staff departments in the organization structure

how did Southwest Airlines achieve the shortest turnaround time in the airline history?

managers Foster relational coordination among the varied people and departments involved in the flight departure process

how can managers ensure that needed coordination and collaboration will take place in their company, both domestically and globally?

managers can Design Systems and structures to promote horizontal coordination and collaboration.

regardless of the type of structure and organization uses what will they need?

mechanisms for horizontal integration and coordination. the structure of an organization is not complete without designing the horizontal as well as the vertical dimensions of structure

after acquiring time warner, AT&T created what?

numerous task forces made up of people from three major divisions which are hbo, turner, and Warner bros, to work on issues ranging from programming to data analytics

what is the divisional approach? M-form/ Multidivisional

occurs when departments are grouped together based on similar organizational outputs. with a divisional structure, or a decentralized form, separate divisions can be organized with responsibility for individual products, services, product groups, major projects or programs, divisions, businesses, or profit centers diverse departments are brought together to produce a single organizational output, whereas it is a product, program, or service to a single customer.

what contributes to part of the efforts to increase decision making speed and efficiency?

reducing management levels and the trend towards wider span of control as a way to facilitate delegation

what does reengineering?

refers to the radical redesign of business processes to achieve dramatic improvements and cost, quality, service, and speed. It generally leads to shift away from a strong vertical structure to one emphasizing stronger horizontal coordination.

the likelihood of centralization is low for those that employ what kind of production?

small batch and continuous process technologies.

why do vertical hierarchies continue to thrive?

some degree of vertical hierarchy is needed to organize a large number and people so they can effectively accomplish complex tasks within a coherent framework. without a vertical structure, people in a large, global firm wouldn't know what to do. however vertical structure often needs to be balanced with strong horizontal mechanisms to achieve Peak Performance

what is relational coordination?

the highest level of horizontal coordination which refers to frequent, timely, problem solving communication carried out through employee relationships of shared goals, shared knowledge, and mutual respect. it is a structural device and mechanism such as the project manager but is also a part of the very Fabric and culture of the organization. in an organization with a high level of relational coordination, people share information freely across departmental boundaries, and people interact on a continuous basis to share knowledge and solve problems. coordination is carried out through a web of ongoing positive relationships rather than because of formal coordination roles or mechanisms. employees coordinate directly with each other across units.

what is a cross-functional team?

they further horizontal coordination because participants from several departments meet regularly to solve ongoing problems of common interest. such a team is similar to a task force except that it works with continuing, rather than temporary, problems and might exist for several years. team members thinking terms of working together for the good of the whole organization rather than just for their own departments

describe the relationship between structure and technology for low performing firms?

they tend to deviate from the preferred structural form, often adopting a structure appropriate for another type of technology.

how did managers of the IRS set out to improve service to the nation's taxpayers?

they undertook a massive reorganization into a divisional structure with four divisions focused on specific types of taxpayers. this includes wage taxpayers, small businesses, large businesses, and tax exempt organizations.

how do total attorneys use cross-functional teams?

to improve coordination on its software and services projects for small law firms.

what is unity of command?

each employee is held accountable to only one supervisor

what are two boss employees?

employees who report to two supervisors simultaneously, must resolve the conflicting demands from The Matrix boxes. they must work with senior managers to reach joint decisions. they need excellent human relation skills in a positive attitude to juggling conflicting work demands and confront managers to resolve conflicts

when do companies usually ship to divisional structures?

when they become so large that the disadvantages of a functional structure become too great such as creating confusion when companies get too big. top Executives can shift to the new divisional structure is a way to make sure each smaller company could be more and entrepreneurial and Innovative and move more quickly.

what is workflow technology?

comprises the knowledge, tools, techniques common activities used to transform organizational inputs into outputs. it includes machinery, employee skills, and work procedures. it is production activities.

what structure is more efficient for achieving internal efficiency goals in a stable environment

functional structure, it uses task specialization in a strict chain of command to realize efficient use of scarce resources, but it does not enable the organization to be flexible or innovative.

what is centralization?

means that decision Authority is located near the top of the organization

what are large batch and Mass production, specifically Mass production?

Mass Production Technologies distinguished by standardized production runs. a large volume of products is produced, and all customers receive the same product. standard products go into inventory for sales as customers need them. the technology makes greater use of machines than does small batch production and machines are designed to do most of the physical work an employee's compliment the machinery.

what is the team approach?

a widespread and departmentalization that gives managers a way to delegate authority, post responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment

why is the span of management for Frontline supervisors the greatest for Mass production?

on an assembly line, jobs are so routine that supervisors can handle an average of 48 employees.

according to a global survey, how many of the most digitally Advanced companies use cross-functional teams compared to what percentage for companies in the early stages of a digitalization?

70% compared to 30

describe division of labor examples for Spotify and walmart?

Spotify establish a new position of Chief content officer when the company wanted to move beyond music Walmart created the position of Chief global technology officer to help it compete better against Amazon

describe the project called great workspace by walmart?

Walmart is testing structural changes in some of its stores that increase the span of management and decentralize authority to lower level employees

what is the key to success for today's digitally advanced companies?

coordination and collaboration, such as carmax, which broke down the silos between departments so that all parts work together to deliver simple and seamless customer experience

why does structure follow strategy?

performance is influenced by how well the company structure is aligned with its strategic intent in the needs of the environment, so managers tried to pick strategies and structures that are congruent.

what is a project manager?

person responsible for coordinating activities of several departments for the completion of a specific project to increase coordination. they might have titles such as product manager, integrator, program manager, or process owner. the distinctive feature is that this person is not a member of one of the Departments being coordinated instead, they are located outside the Departments and our responsible for coordinating several departments to achieve desired project outcomes.

what is technical complexity?

the degree to which Machinery is involved in the production to the exclusion of people. with complex technology employees are barely needed except to monitor the machines.

what are the three characteristics of authority?

1. Authority is vested in organizational positions not people. 2. Authority flows down the vertical hierarchy. positions at the top of the hierarchy are vested with more formal Authority than are those positions at the bottom 3. Authority is accepted by subordinates. subordinates comply because they believe managers have a legitimate right to issue orders.

what are advantages of the functional structure?

1. Grouping employees by Common task permits economies of scale and efficient resource use. 2. large, functionally based apartments enhance the development of in-depth skills because people work on a variety of related problems and are associated with other experts within their own department. 3. 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. ​

what are the advantages to a matrix structure?

1. Is highly effective in a complex rapidly changing environment in which the organization needs to be flexible, innovative, and adaptable 2. new issues can be raised in resolved by the conflict and frequent meetings generated by The Matrix 3. make sufficient use of HR because Specialists can be transferred from one division to another

what are the advantages of the team approach to structure?

1. breaks down barriers across departments and improves coordination and cooperation. team members know one another's problems, so they are more willing to compromise rather than blindly pursuing their own goals. 2. enables the organization to adapt more quickly to customer requests and environmental changes, and it speeds decision making because decisions need not to go up the top of the hierarchy for approval. 3. moral boost. employees typically are enthusiastic about their involvement in bigger projects rather than a narrow departmental tasks.

what are the advantages of virtual Network structures?

1. flexibility and competitiveness on a global scale. it enables organizations to shift resources and respond quickly to changes in the environment and customer needs. A. competitiveness: draws on resources and expertise worldwide to achieve the best quality and price and consults products and services worldwide. flexibility comes from the ability to hire whatever services are needed and to change a few months later without constraints from owning plants, equipment, and facilities. 2. little supervision is required resulting in the leanest of all organization forms. a network organization may only have two or three levels of hierarchy, compared with 10 or more in traditional organizations. 3. reduced overhead cost

what are the factors that typically influence choices about centralization versus decentralization?

1. greater change and uncertainty in the environment are usually associated with decentralization 2. the amount of centralization or decentralization should fit the firm strategy. decentralization can allow managers to go on their own Direction and run their stores as they see fit which can lead to a success. however, as stiffer competition of Roads profits, centralized purchasing functions for instance can increase purchasing power and reduce costs 3. in times of Crisis or risk of company failure, Authority may be centralized at the top.

name some factors that may influence a top Executives optimal span of control?

1. people new to their positions want a wider span of control to help them evaluate their Executives and learn more aspects about the business 2. a CEO who must spend a lot of time interacting with customers, partners, or regulators, may want a narrower span of control, having less time for direct reports and freeing up more time for external activities 3. hey CEO involved in a major internal transformation may want a wider span of control to stay on top of what is happening all across the organization

what are the disadvantages of a matrix structure?

1. the confusion and frustration caused by the dual chain of command. The Matrix bosses and two boss employees may experience difficulty with the Dual reporting relationships 2. it generates a high level of conflict because it pets divisional against functional goals in a domestic structure, or product line versus country goals in a global structure. rivalry between the two sides can be exceedingly difficult for two boss employees to manage 3. time lost to meetings and discussions devoted to resolving conflict. The Matrix structure leads to more discussion than action because different goals and points of view are being addressed. manager spend a lot of time coordinating meetings and assignments which takes away from core work activities

what are the factors that are associated with the last supervisor involvement and therefore larger spans of management control?

1. work performed by subordinates is stable and routine 2. subordinates performs similar work tasks 3. subordinates are concentrated in a single location 4. subordinates are highly trained and need little Direction in Performing tasks 5. rules and procedures defining task activities are available 6. support systems and Personnel are available for the manager 7. little time is required and non supervisory activities, such as coordination with other departments or planning 8. managers personal preferences and styles favors a large span

what is the primary difference between divisional and functional structures?

In a divisional structure, the chain of command from each function converges lower in the hierarchy. for example in a divisional structure, differences of opinion among R&D, marketing, manufacturing, and finance would be resolved at the divisional level rather than by the top executive. the divisional structure encourages decentralization. decision-making is pushed down at least one level in the hierarchy, freeing the president and other top managers to engage in strategic planning. only a divisions can agree, failed to coordinate, or start making decisions that hurt the organization are some decisions pulled back up to the top

what is structure?

a powerful tool for reaching strategic goals, and a strategy success often is determined by its fit with organizational structure.

the divisional structure is also sometimes called what?

a product structure, program structure, or self-contained unit structure.

what is a functional structure also called a u form (Unitary Structure)?

activities are grouped together by common function from the bottom to the top of the organization. it groups positions in two departments based on similar skills, expertise, work activities, and resource use. it can be thought of as a departmentalization by organizing resources because each type of functional activity such as accounting, hr, engineering, and manufacturing, represents specific resources for performing the organization's tasks. resources representing a common function or grouped into a single department.

does bosslessness really work?

anyone can pursue an idea and persuade others to join. there are no management layers, few titles, and no organization charts. small teams are the core operating unit and people choose which teams to work on and can say no to request from anyone. additionally strong accountability can be integrated in the form that compensation is decided by a panel appears in people reviewed by at least 20 of their peers every year.

what is the Matrix approach?

combines aspects of both functional and divisional structures simultaneously, in the same part of the organization. it evolved as a way to improve horizontal coordination and information sharing. one unique feature of The Matrix is its dual lines of authority. it supports a chain of command for both functional (vertical) and divisional (horizontal) relationships and as a result some employees report to two supervisors simultaneously

what is organization structure?

defines how tasks are divided in resources deployed 1. the set of formal tasks assigned to individuals and departments 2. formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers control 3. the design of systems to ensure effective coordination of employees across departments. ensuring coordination across departments is just as critical as defining the Departments to begin with because without effective coordination systems, no structure is complete ​

what are the fundamental characteristics of vertical organization structure?

division of labor, chain of command, span of management, and centralization and decentralization

what are the disadvantages to the team approach to structure?

employees may also experience conflicts in dual loyalties. a cross-functional team may make different work demands on members than do their department managers, and members who participate in more than one team must resolve these conflicts. 2. large amount of time is devoted to meetings, thus increasing time coordination. unless teams are needed to coordinate complex projects and adapt to the environment, it will otherwise lose production efficiency with this structure 3. it may cause too much decentralization. senior department managers who traditionally made decisions might feel left out when a team moves ahead of its own. team members often do not see the corporations big picture, so they may make a decision which is good for their group but bad for the organization as a whole

organizational structure is one vital factor that helps managers do what? how is it changing in the recent years?

execute their strategies and achieve their goals. in the recent years. many companies have realigned departmental groupings, chains of command, and horizontal coordination mechanisms to attain new strategic goals or to cope with a turbulent environment. many companies are flattening their hierarchies and cutting out layers of management to improve efficiency and be more flexible. some people thrive in these kinds of less hierarchical, even bossless, organizations, whereas others have a strong preference for a clearly defined vertical structure

describe the differences in the span of management for supervisors closely involved with subordinates, and supervisors who need little involvement with subordinates?

generally, when supervisors must be closely involved with subordinates, the span can be small. in contrast when supervisors need little involvement with subordinates, it can be large.

what is a tall structure?

has an overall narrow span and more hierarchical levels

what is a common structural problem for organizations?

having too many hierarchical levels and narrow spans of control

how does a divisional structure work?

in a divisional structure, divisions are created as self-contained units, with separate functional departments for each division. each department is smaller and focuses on a single product line or customer segment. departments are duplicated across product lines.

what is chain of command?

is an unbroken line of authority that links all employees in an organization and shows who reports to whom. it is associated with two underlying principles which are unity of command and scalar principle

what is the top leader?

is responsible for the entire Matrix and by that that means they oversee both of the product and functional chains of command. his or her responsibility is to maintain a power balance between the two sides of the matrix. if disputes arise between them Bahama the problem will be kicked upstairs to the top leader

what is responsibility?

is the duty to perform the task or activity as assigned. managers are assigned Authority commensurate with their responsibilities. when managers have responsibility for task outcomes but little authority, the job is possible but difficult because managers rely on persuasion and luck to achieve their goals. when managers have authority that exceeds responsibility, they may become tyrants and wield that authority to achieve frivolous outcomes

what is the Matrix boss?

is the product or functional boss, who is responsible for one side of the matrix.

Describe Cognizant Technology Solutions Corporation's unusual chain of command referred to as Two in a box?

it assigned two managers to each project, one in India and one at the client site. each is equally responsible for the projects success. this model works because it enhances the companies customer responsiveness, even though it violates the principle of unity of command

what is a global Geographic structure?

it assigns divisional responsibility to a specific set of company functions to survey geographic region or customer group. all functions in a specific County or region report to the same division manager and work together to serve the same Regional customers. competitive Advantage may come from the production or sale the product or service adapted to a given country or region it can typically have a centralized headquarters and semi-autonomous units serving local customers

what is the strength and weakness of making the decision to delegate to lower level managers and employees?

it can be highly motivating and improve speed, flexibility, and creativity. however many managers find delegation difficult. when managers can't delegate, they undermine the role of their subordinates and prevent people from doing their jobs effectively

is covered in this chapter?

it covers fundamental concepts that apply to all organizations and departments, including ways to organize a vertical structure and mechanisms for horizontal coordination.

describe an example organizational chart for a water bottle plant?

it has four major departments that are accounting, hr, production, and marketing. the chart delineates the chain of commands, indicates departmental tasks and how they fit together, and provide order and Logic for the organization. every employee has a appointed task, line of authority, and decision responsibility.

what happens when the span of management for CEOs increases?

it increases managers who directly report to the top executive, with the span of management for those managers also increasing. at the same time the types of positions in the top team are shifting, with the position of Chief Operating Officer declining and positions such as cio, CTO or chief marketing officer being added to the top team

what is staff authority?

it is narrower and includes the right to advise, recommend, and counsel in the staff specialist area of expertise. Staff Authority is a communication relationship, staff specialist advised managers and Technical areas.

what is departmentalization?

it is the basis for grouping positions into departments and departments into the total organization. managers make choices about how to use the chain of command to group people together to perform their work.

what is organizing?

it is the deployment of organizational resources to achieve strategic goals. the deployment of resources is reflected in the organization's division of labor into specific departments and jobs, formal lines of authority, and mechanisms for coordinating diverse organization tasks

what is accountability?

it is the mechanism through which authority and responsibility are brought into alignment. it means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. four organizations to function, everyone needs to know what they are accountable for and accept the responsibility and Authority for performing it

what is the span of management?

it is the number of employees reported to a supervisor. sometimes called the span of control, this characteristic of structure determines how closely a supervisor can monitor subordinates.

what is delegation?

it is the process that managers use to transfer Authority and responsibility to positions below them in the hierarchy. most organizations encourage managers to delegate authority to the lowest possible level to provide maximum flexibility to meet customer needs and adapt to shifts in the environment.

when organizations face new strategic issues, how do managers use division of labor to deal with them?

managers often create new positions or departments to deal with the new strategic issues

what is one reason for the growing use of teams and networks?

managers recognize the limits of traditional vertical organizational structures in a fast shifting environment. the trend is now moving towards breaking down barriers between departments, and many companies are moving towards horizontal structures based on work processes rather than departmental functions.

what is line authority?

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

what is outsourcing?

men's farming out certain activities, such as manufacturing or credit processing, has become a significant trend.

how does a team approach work? what are cross-functional teams?

one approaches to create cross-functional teams, which consists of employees from various functional departments who are responsible for meeting as a team and resolving Mutual problems. they can provide needed horizontal coordination to completement and existing divisional or functional structure. a frequent use is for a change projects, such as new product or team innovation in which team members typically report to their functional departments, but also report to the team, one member of whom may be the leader 2. the second approach is to use permanent teams which are groups of employees who are organized in a similar way to a formal department. each team brings together employees from all functional areas focused on a specific task or project, such as Parts Supply and logistics for an automobile plant. emphasis is on horizontal communication and information sharing because representatives from all functions are coordinating their work and skills to complete a specific organizational task. Authority is pushed down to lower levels, and Frontline employees are given the freedom to make decisions and take action on their own. team members may share or rotate team leadership ​

what is the scalar principle?

refers to a clearly defined line of authority in the organization that includes all employees. Authority and responsibility for different tasks should be distinct. all individuals should know to whom they report, as well as the successive management levels all the way to the top.

what happens when organizations have too many management levels?

routine decisions are made too high in the organization, which pulls higher level Executives away from important, long range strategic issues and limits the creativity, innovativeness, and accountability of lower level managers

how does bosslessness encourage innovation?

team leads are chosen by informal consensus within each project, in team members work together to make decisions about how often they meet, how to test products, and the best way to achieve goals. people conform the team to investigate the ideas that resulted in a huge new release

how does a functional structure work?

the Department's under the president are groupings of similar expertise and resources. each of the functional departments is concerned with the organization as a whole. the functional structure is a strong vertical design. information flows up and down the vertical hierarchy, and the chain of command converges at the top of the organization. people within a department communicate with others in the same Department to coordinate work and accomplish tasks or Implement decisions that are passed down the higher gate. managers and employees within the same Department share similar training and expertise. rules and procedures govern the duties and responsibilities of each employee and employees at lower hierarchical levels except the right of those higher to make decisions and issue orders

describe the five approaches to structural design reflecting different uses of the chain of command and depart mentalization.

the functional, divisional, and Matrix structures are traditional approaches that rely on the chain of command to Define departmental groupings and Reporting relationships among the hierarchy. two Innovative approaches that have emerged to meet changing organizational needs in a turbulent global environment are the use of: Teams and virtual Networks the difference among structures is the way in which employees or departmentalized into whom they report.

centralization and decentralization pertains to what?

the hierarchical level at which decisions are made. organizations may have to experiment to find the correct hierarchical level at which to make decisions.

how does a virtual Network approach to structure work?

the networked organization may be viewed as a central Hub surrounded by a web of outside specialist, sometimes Fred all over the world. rather than being housed under one roof, services such as accounting, design, manufacturing, and distribution are outsourced to separate organizations that are connected electronically to the central office. Network computer systems, collaborative software, and the internet enable organizations to exchange data and information so rapidly and smoothly that a Loosely connected group of suppliers, manufacturers, assemblers, and distributors can look and act as one seamless company. the idea is that a company can concentrate on what it does best in contract out other activities to companies with distinctive competence in those specific areas, which enables a company to do more with less. the different organizational Parts in a virtual Network structure are drawn together contractually and coordinated electronically, creating a new form of organization much like building blocks, parts of a network can be added or taken away to meet changing needs

what is division of labor, sometimes called work specialization? what is an example of division of labor by the separation of production tasks of a water bottling plant?

the stems for me fundamental principle that work can be performed more efficiently if employees are allowed to specialize. division of labor is the degree to which organizational tasks are subdivided into separate jobs. division of labor can separate production tasks such as bottling, quality control, and maintenance and employees within each department perform only tasks relevant to their specialized function.

when companies are moving away from the advantages of specialization, what are they doing instead?

they're implementing teams and other mechanisms that enhance coordination and provide greater challenge for employees

describe the tug of war between centralization and decentralization within many companies?

top Executives want to centralize some operations to eliminate and duplication while business division managers want to maintain decentralized control. manager should diagnose the organizational situation and select the decision-making level that will best meet the organization's needs

in the United States and Canada what has the trend over the past 30 years been towards concerning centralization and decentralization?

towards greater decentralization of organizations because it is believed to relieve the burden on top managers, make greater use of employee skills and abilities, ensure that decisions are made close to the action by well-informed people, and permit more rapid response to external changes.

compare and contrast traditional views of organizational design recommendations for a span of management and lean organizations today?

traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager. many lean organizations have been a management numbering 30, 40, and even higher.

how does the Matrix structure work?

two lines of authority are Geographic and product. the geographic boss and place a coordinates all subsidiaries and place a, and the products boss coordinates the manufacturing and sales of products around the world. managers of local subsidiary companies in place a would report to two superiors, both the country boss and the product boss. the Dual Authority structure violates the unity of command concept but is necessary to give equal emphasis to both functional and divisional lines of authority. the lines of authority can be confusing, but after managers learn how to use this structure the Matrix provides excellent coordination simultaneously for each geographic region in each product line

despite the apparent advantages of specialization, why are many organizations moving away from this principle?

with too much division of labor, employees are isolated and do only a single, boring job. too much specialization creates separation and hinders the coordination that is essential for the organization to be effective