module 13 organization structures “it’s all about working together” what is organizing as a...
TRANSCRIPT
MODULE 13
ORGANIZATION STRUCTURES
“It’s all about working together”
• What is organizing as a managerial responsibility?
• What are the most common types of organization structures?
ORGANIZATION STRUCTURES
Organizing As A Management Responsibility
MODULE GUIDE 13.1
Organizing is one of the management functions.
Organization charts describe the formal structures of organizations.
Organizations also operate with important informal structures.
Informal structures have good points and bad points.
ORGANIZATION STRUCTURES
Organizing As A Management Responsibility
Organizing process of arranging people and resources to work
toward a common goal.
ORGANIZATION STRUCTURES
Organizing As A Management Responsibility
Structure system of tasks, reporting relationships, and communication that links
people and positions within an organization. Organization Charts
describe the formal structure, how an organization should ideally work.
ORGANIZATION STRUCTURES
Organizing As A Management Responsibility
What You Can Learn from an Organization Chart
Division of work - Positions and titles show work responsibilities.
Supervisory relationships - Lines between positions show who reports to whom in the chain of command.
Span of control - The number of persons reporting to a supervisor.
Communication channels - Lines between positions show routes for formal communication flows.
Major subunits - Which job titles are grouped together in work units, departments, or divisions.
Staff positions - Staff specialists that support other positions and parts of the organization.
Levels of management - The number of management layers from top to bottom.
ORGANIZATION STRUCTURES
Organizing As A Management Responsibility
Division of LaborPeople and groups performing different jobs
Formal StructureThe official structure of the organization
Informal Structure the unofficial relationships that develop
among an organization’s members.
ORGANIZATION STRUCTURES
Organizing As A Management Responsibility
ORGANIZATION STRUCTURES
Organization Structures
MODULE GUIDE 13.2
Functional structures group together people using similar skills.
Divisional structures group together people by products, customers, or locations.
Matrix structures combine the functional and divisional structures.
Team structures use many permanent and temporary teams.
Network structures extensively use strategic alliances
ORGANIZATION STRUCTURES
Functional Structures
Departmentalization Grouping together people and jobs into one unit
Functional Structures group together people using similar skills to perform similar activities.
Potential Advantages of Functional Structures • Economies of scale make efficient use of human resources. • Functional experts are good at solving technical problems. • Training within functions promotes skill development. • Career paths are available within each function.
ORGANIZATION STRUCTURES
Functional Structures
ORGANIZATION STRUCTURES
Functional Structures
Functional Chimneys ProblemA lack of communication and coordination
across functional organizations
ORGANIZATION STRUCTURES
Divisional Structures
Divisional structures group together people who work on a similar product, work in the same geographical region, or serve the same customers.
Potential Advantages of Divisional Structures •Expertise focused on special products, customers, regions •Better coordination across functions within divisions •Better accountability for product or service delivery •Easier to grow or shrink in size as conditions change
ORGANIZATION STRUCTURES
Divisional Structures
ORGANIZATION STRUCTURES
Customer & Matrix Structures
Customer StructureGroups together people and jobs that serve
the same customers or clientsMatrix Structure
uses permanent cross functional teams to try to gain the advantages of both the functional and divisional approaches.
ORGANIZATION STRUCTURES
Matrix Structures
Potential Advantages of Matrix Structures Performance accountability rests with program, product, or project
managers. Teams enable better communication and cooperation across functions. Teams make more decisions and solve more problems at their levels. Top managers spend more time on strategic issues. A cross-functional team brings together members from different
functional departments.
ORGANIZATION STRUCTURES
Team Structures
Team Structures make extensive use of permanent and temporary
teams, often cross functional, to improve communication, cooperation, and problem solving.
Potential Advantages of Team Structures •Team assignments improve communication, cooperation, and decision-making. •Team members get to know each other as persons, not just job titles. •Team memberships boost morale, and increase enthusiasm and task involvement.
ORGANIZATION STRUCTURES
Team Structures
ORGANIZATION STRUCTURES
Network Structures
Network structures maintain a staff of core fulltime employees and use contracted services and strategic alliances to accomplish many business needs.
ORGANIZATION STRUCTURES
Virtual Structures
Virtual Structure Uses information technologies to operate as a
shifting network of alliances.
MANAGEMENT TIPSSeven deadly sins of outsourcing: 1. Outsourcing activities that are part of the core competency2. Outsourcing to untrustworthy vendors 3. Agreeing to unfavorable contracts with the vendor 4. Overlooking impact on existing employees 5. Not maintaining oversight; losing control to vendors 6. Overlooking hidden costs of managing contracts 7. Failing to anticipate need to change vendors or cease outsourcing