Management Organizational Structure

Divisional structure

- Composed of separate business units or divisions with limited autonomy under the coordination and control the parent corporation. - Often use a combination of multiple types of departmentalization (i.e., functional, geographic, product, process, customer)

Which is better for centralization?

- Depends on the situation - Decentralization helps organizations adapt to complex environments and empowers employees, both of which are important today

How would you know the difference between centralized and decentralized?

- In a centralized organization, top managers make all the decisions and lower-level employees simply carry out those orders - In a decentralized organization, decision making is pushed down to the managers and employees who are closest to the action

How would you know?

- In a highly formalized organization, there are many organizational rules and defined procedures (evidence may be found in employee handbooks or job descriptions that highlight rules) - In a less formalized organization, employees have discretion over how work is to be done and even sometimes what work is to be done (non-programmed decision making is key feature)

How can organizations build a learning organization?

- Learning organizations continuously acquire and share new knowledge - Organizations skilled at knowledge transfer are more competitive, more likely to survive, and more productive. - Lafarge, for example, benefitted when one of its facilities located in Malaysia adopted an efficient production routine developed by another of its facilities located in Turkey.

How to managing global structural issues

- Structures are global, but cultures vary - Appropriate design elements vary - Mechanistic structures (e.g. formalization) and power -distance as well as economic development

How to keep employees connected

- Widely dispersed and mobile employees - Mobile computing and communication technology - Security concerns - Surveillance and monitoring

Virtual Organization

- consists of a small core of full-time employees - temporarily hires specialists to work when needed

Q: Are these pure types or a continuum? - Most organizations have some features of each because they need __________ & ___________as well as _________& __________ - As organizations get larger they have a higher need for __________, and thus, become more ____________

- continuu - efficiency, control, adaptability, flexibility - control, ?

Which is better for formalization?

- high formalization = consistency - low formalization = innovation

Network Organization

- small core organization concentrates on what it does best (e.g., marketing) - outsources its major business functions (e.g., manufacturing)

Simple Structure

-Low departmentalization -centralized authority -little formalization

Types of Departmentalization

1. Functional 2. Product 3. Geographical 4. Process 5. Customer

Q: In recent years, there has been a movement to make organizations more flexible and responsive through ________. A) centralization B) decentralization C) alternative organizational structure D) customer-based structure

B - decentralized

Q: When managers standardize employee behavior through programmed decision making with rules and procedures, the jobs are becoming more ________. A) diversified B) formalized C) vertical D) horizontal

B - formalized

3. A mechanistic structure is likely to be most effective in which host country? A) England B) Netherlands C) USA D) France

D - france

2. Which of the following is a major characteristic of today's organizations? A) constant managerial supervision B) loyal employees C) full-time, permanent jobs D) mobile employees

D - mobile employees

3. A ________ structure is an advanced version of the matrix organization, where employees continuously work on assignments that are oriented to completion of a task. A) weighted B) functional C) conservative D) Project

D - project

Functional Structure

Departmentalization by function: Operations, finance, marketing, human resources, and product research and development

1 . Researchers have concluded that the structures of organizations worldwide are vastly different from one another. (True/False)

False

2. Contemporary organization that use team structure to get work done often embed these teams within a functional or a divisional structure(true/false)

False

Team structures

The entire organization is made up of work groups or self-managed teams of empowered employees

1 . A matrix design creates a dual chain of command (true/false)

True

Q: Organic Organization: - Primary Goals: _________ and ________ - Strategic Fit: ______________strategy

adaptability, flexibility product differentiation

Q: The strength of a ________ structure is based on results of managers, but it has a weakness because duplication can occur easily within the organization. A) simple B) functional C) divisional D) matrix

c - divisional

Q: Mechanistic Organization: - Primary Goals: _________ and ________ - Strategic Fit: ______________ strategy

efficiency, control cost leadership

Matrix Structures

employees from different functional departments work on cross-functional projects; so have two managers (functional manager and project manager)

Project Structures

employees work continuously on projects; often multiple ones simultaneously so have many managers

Departmentalization

extent that employees with similar jobs are grouped together

Q: Centralization is a structural decision about how to divide work activities into separate job tasks(true/false)

false

Organic Organization

flexible structure characterized by less rigid departmentalization (cross departmental teams may be used), low formalization, and decentralized decision making

Functional

grouping jobs by functions performed (accounting, sales)

Product

grouping jobs by product line

Customer

grouping jobs by type of customer and needs

Process

grouping jobs on the basis of product or customer flow

Geographical

grouping jobs on the basis of territory or geography

Mechanistic Organization

rigid, tightly controlled structure characterized by rigid departmentalization ("silos"), high formalization, centralized decision-making

Centralization

the degree to which decision making is concentrated at upper levels in the organization

Formalization

the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures