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
