MOB: Chapter 7: Organizational Structure & design

functional

Grouping jobs by functions performed

factors of chain of command

Responsbility Authority Accountability Unity of Command Delegation Line & staff Authority

Span of control

The # of employees a manager can efficiently & effectively manage

Chain of Command

The continuous line of authority that extends from the top of the organization to the lowest level & clarifies who reports to whom

formalization

The degree to which jobs are standardized & employees rely on the rules & procedures.

Work Specialization

The degree to which tasks are divided into separate jobs

example of centralization

Usually upper levels of management

technology

What the organization uses to transform inputs into outputs

network organizations

a small core organization that outsources major business functions

virtual organizations

an organization that has elements of a traditional organization, but also relies on recent developments in information technology to get work done.

boundaryless organizations

an organization that is not defined by a chain of command, places no limits on spans of control, & replaces departments with empowered teams.

Imitation

an organization's attempt to minimize risk and maximize profit opportunities by copying the market leaders

innovation

an organization's drive to be on the cutting edge of its industry

cost minimization

an organization's push to tightly control costs.

organic organization

an organizational design that is highly adaptive & flexible

mechanistic organization

an organizational design that is rigid & tightly controlled

Project structures

an organizational structure in which employees continuously work on projects

team structures

an organizational structure in which the entire organization is made up of work groups or teams.

Matrix structures

an organizational structure that assigns specialists from different functional departments to work on one or more projects

simple structure

an organizational structure with low departmentalization, wide spans of control, authority centralized in a single person, & little formation.

what factors determine whether an organization will toward more centralization or decentralzation?

companies facing dynamic environments are more likely to need to adapt quickly to change & this decentralized decision making

division structure

contains of separate business units or divisions

centralization

degree to which decision making is concentrated at a single point in the organization

Departmentalization

functional, product, geographical, process & customer

employee empowerment

giving more authority to employees to make decisions

product

grouping jobs by product line

Customer

grouping jobs by type of customer & needs

Process

grouping jobs on the basis of product or customer flow

geographical

grouping jobs on the basis of territory or geography

functional structure

groups similar or related occupational specialities together

organizational structure

how jobs are divided, grouped and coordinated within an organization

strategy involves what 3 dimensions

innovation , cost minimization, imitation

line & staff authority- 2 parts

line managers & staff managers

line managers

managers responsible for the essential activities of the organization, including production & sales

Staff Managers

managers who work in the supporting activities of the organizations(such as HR or accounting)

components of technology

mass production, unit production & process production

mechanistic organization is characterized by:

o High specialization o Rigid departmentalization o Narrow spans of control o High formalization o Limited information network o Limited participation in decision making by employees

Organic Organization characteristics

o Highly adaptive o Flexible o Little work specialization o Minimal formalization o Little direct supervision of employees

size & structure

o Larger organizations gravitate to more specialized, departmentalized, formalized, & centralized structures o Smaller organizations tend to the opposite

environmental uncertainties

o The more uncertain, the more flexibility required in the structure o The more certain, the more rigid the structure

how can organizations be structured

simple structure, functional structure, division structure

contemporary organizational designs

team structures, matrix & project structures, Boundaryless organizations,virtual organizations, network organizations

delegation

the assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions.

Decentralization

the degree to which lower-level employees provide input or actually make decisions

unity of command

the management principle that states every employee should receive orders from only one superior.

Accountability

the need to report & justify work to a manager's superiors

Responsibility

the obligation or expectation to perform any assigned duties

organizing

the process of creating a structure that supports the achievement of the organizations objectives

organizational design

the process of developing or changing an organizations structures.

process production

the production of items in continuous processes

mass production

the production of items in large batches

unit production

the production of items in units or small batches

Authority

the rights inherent in a managerial position to tell people what to do & what to expect them to do it.

cross functional teams

work teams made up of individuals who are experts in various functional specialities

organizational design challenges

• Keeping employees connected • Building a learning organization o Employees continually acquire & share new knowledge o Apply the knowledge to making decisions • Managing global structural issues o Considering the cultural aspects within the design

span of control is affected by

• Skills & abilities of the manager & employees • Characteristics of the work being done

what factors affect organizational structure?

• Strategy • Size & structure • Technology • Environmental uncertainties

what are the major elements of organizational structure

• Work Specialization • Departmentalization • Chain of command • Span of control • Centralization & decentralization • Formalization