organizing chapter of management
TRANSCRIPT
-
7/28/2019 organizing chapter of management
1/42
Chapter 8
Organization Structure
and Design
EXPLORING MANAGEMENT
-
7/28/2019 organizing chapter of management
2/42
Chapter 8
What is organizing as a managerial
responsibility?
What are the most common types of
organization structures?
What are the trends in organizational
design?
-
7/28/2019 organizing chapter of management
3/42
8.1
Organizing
Organizing is one of the management functions
Organization charts describe the formalstructures of organizations
Organizations also operate with informal
structures
Informal structures have good points and bad
points
-
7/28/2019 organizing chapter of management
4/42
Organizing is one of the management
functions
Organizing
Arranges people and resources to work
toward a goal
-
7/28/2019 organizing chapter of management
5/42
Organizing is one of the management
functions
Key managing decisions include those
that:
Divide up work to be done
Staff jobs with talented people
Position resources for best utilization
Coordinate activities
Planning sets goals through organizing
-
7/28/2019 organizing chapter of management
6/42
ORGANIZING
Organization charts describe the
formal structures of organizations
Organization structure system of tasks, reporting relationships,
and communication that links peopleand positions within an organization.
Organization Charts describe the formal structure, how an
organization should ideally work.
-
7/28/2019 organizing chapter of management
7/42
Positions and titles show work responsibilities.Division of work
Lines between positions show who reports to whom in the chain
of command.Supervisory relationships
The number of persons reporting to a supervisor.Span of control
Lines between positions show routes for formal communication
flows.Communication channels
Which job titles are grouped together in work units,
departments, or divisions.Major subunits
Staff specialists that support other positions and parts of the
organization.Staff positions
The number of management layers from top to bottom.Levels of management
ORGANIZING
Organizational Charts
What You Can Learn from an Organization Chart
-
7/28/2019 organizing chapter of management
8/42
ORGANIZING
Formal Structure
-
7/28/2019 organizing chapter of management
9/42
ORGANIZING
Formal Structure
Division of Labor People and groups performing different
jobs.
Formal Structure The official structure of the organization.
Informal Structure The unofficial relationships that develop
among an organizations members.
ORGANIZING
-
7/28/2019 organizing chapter of management
10/42
ORGANIZING
Organizations also operate with
informal structures
Informal Structure Unofficial but important working relationships
between members.
ORGANIZING
-
7/28/2019 organizing chapter of management
11/42
ORGANIZING
Informal structures have good
points and bad points Informal Structures have good and bad
points
Social network analysis identifies
communication relationships
Good points include problem solving, support,friendship and fill gaps in the formal structureand help compensate for its inadequacies
Bad points include rumors, inaccurateinformation and resistance to change, anddistract members from work
Eavesdropping; alert listening
-
7/28/2019 organizing chapter of management
12/42
8.2
Common Types of Structures
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 andtemporary teams
Network structures extensively use strategic
alliances and outsourcing
-
7/28/2019 organizing chapter of management
13/42
8.2
Common Types of Structures
Departmentalization Grouping people and jobs into a work unit
COMMON ORGANIZATIONAL STRUCTURES
-
7/28/2019 organizing chapter of management
14/42
COMMON ORGANIZATIONAL STRUCTURES
Functional structures group
together people using similar skills
Functional Structures group people with
similar skills
Functional Structure
Work units have similar skills and tasks such as
finance, marketing, production and human
resources.
Works best in smaller or stable organizations
-
7/28/2019 organizing chapter of management
15/42
COMMON ORGANIZATIONAL STRUCTURES
Functional Structures
Potential Advantages of Functional Structures:
Economies of scale make efficient use of humanresources.
Functional experts are good at solving technicalproblems.
Training within functions promotes skilldevelopment.
Career paths are available within each function.
-
7/28/2019 organizing chapter of management
16/42
COMMON ORGANIZATIONAL STRUCTURES
Functional Structures
Common functional structure
-
7/28/2019 organizing chapter of management
17/42
COMMON ORGANIZATIONAL STRUCTURES
Disadvantages of Functional Structures
Functional Chimneys or Silos
Communication, coordination andperformance decrease across functions
Focus on
functional goals
rather than broadorg goals
Accountability issue
-
7/28/2019 organizing chapter of management
18/42
COMMON ORGANIZATIONAL STRUCTURES
Divisional structures group together people
by products, customers or locations
Divisional structures group together
people who work on a similar product,
work in the same geographical region, or
serve the same customers
-
7/28/2019 organizing chapter of management
19/42
COMMON ORGANIZATIONAL STRUCTURES
Divisional Structures
Common divisional structures
-
7/28/2019 organizing chapter of management
20/42
COMMON ORGANIZATIONAL STRUCTURES
Divisional Structures
Potential Advantages of Divisional Structures:
Expertise focused on special products, customers,regions
Better coordination across functions withindivisions
Better accountability for product or service delivery
Easier to grow or shrink in size as conditionschange
-
7/28/2019 organizing chapter of management
21/42
COMMON ORGANIZATIONAL STRUCTURES
Matrix Structures
Matrix Structures combine functional anddivisional structures
uses permanent cross functional teams to try togain the advantages of both the functional anddivisional approaches
Workers belong to at least two formal groups atthe same time a functional group and a projectgroup
They report to two bosses functional head andproject head
-
7/28/2019 organizing chapter of management
22/42
COMMON ORGANIZATIONAL STRUCTURES
Matrix Structures
Teams are horizontal
Functions
are
vertical
-
7/28/2019 organizing chapter of management
23/42
COMMON ORGANIZATIONAL STRUCTURES
Matrix Structures
Potential advantages of Matrix structures:
Performance accountability rests withprogram, product, or project managers.
Better communication exists acrossfunctions.
Teams solve problems at their levels.
Top managers spend more time on strategy.
-
7/28/2019 organizing chapter of management
24/42
COMMON ORGANIZATIONAL STRUCTURES
Matrix Structures
Potential disadvantages of Matrix structures:
Two-boss system
May be costly as it needs more managers
Team meetings can be time consuming
COMMON ORGANIZATIONAL STRUCTURES
-
7/28/2019 organizing chapter of management
25/42
COMMON ORGANIZATIONAL STRUCTURES
Team structures use many permanent
and temporary teams
Team Structures
Make use of permanent and temporary cross
functional teams
Improved problem solving and project
management
-
7/28/2019 organizing chapter of management
26/42
COMMON ORGANIZATIONAL STRUCTURES
Team Structures
Team structure example
-
7/28/2019 organizing chapter of management
27/42
COMMON ORGANIZATIONAL STRUCTURES
Team Structures
Possible 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, andincrease enthusiasm and task involvement.
COMMON ORGANIZATIONAL STRUCTURES
-
7/28/2019 organizing chapter of management
28/42
COMMON ORGANIZATIONAL STRUCTURES
Network structures extensively use
strategic alliances and outsourcing
Network structures
Consist of a central core with networks of
relationships with contractors
Contractors and network partners supply
essential services
-
7/28/2019 organizing chapter of management
29/42
COMMON ORGANIZATIONAL STRUCTURES
Network Structures
Network structure example
-
7/28/2019 organizing chapter of management
30/42
COMMON ORGANIZATIONAL STRUCTURES
Network Structures
Possible advantages of Network structures:
Lower costs due to fewer full-time employees.
Better access to expertise through specializedalliance partners and contractors.
Easy to grow or shrink with market conditions.
However, too much outsourcing has its owncost
-
7/28/2019 organizing chapter of management
31/42
COMMON ORGANIZATIONAL STRUCTURES
Network Structures
Virtual Organizations
Network that depends oninformation technology to
link alliances and essential
services
-
7/28/2019 organizing chapter of management
32/42
8.3
Organizational Design Trends
Organizations are becoming flatter, with fewerlevels of management
Organizations are increasing decentralization
Organizations are increasing delegation andempowerment
Organizations are becoming more horizontal
and adaptive
Organizations are using more alternative work
schedules
-
7/28/2019 organizing chapter of management
33/42
ORGANIZATIONAL DESIGN TRENDS
Organizational Design
Organizational Design
Aligns structure to bestaccomplish mission and
respond to external
environment
ORGANIZATIONAL DESIGN TRENDS
-
7/28/2019 organizing chapter of management
34/42
Organizations are becoming flatter, with
fewer levels of management
Span of control
How many people report to a manager
Narrow
manger supervises few people
Wide
manger supervises larger number of people
flatter organizations have wide span of control
-
7/28/2019 organizing chapter of management
35/42
ORGANIZATIONAL DESIGN TRENDS
Organizational Design
Less efficient, less flexible, and less
customer sensitive
Simplification reduces cost, improvesproductivity, and enhances employee
satisfaction
-
7/28/2019 organizing chapter of management
36/42
ORGANIZATIONAL DESIGN TRENDS
Decentralized Decision-making
Centralization
Top management keeps strong decision-
making control
Decentralization
Decision-making is distributed throughoutthe organization
-
7/28/2019 organizing chapter of management
37/42
ORGANIZATIONAL DESIGN TRENDS
Increased Delegation
Delegation
Giving others the right to make decisions and takeaction
Steps1. Assign responsibilityexplain task and expectations
to others.
2. Grant authorityallow others to act as needed tocomplete task.
3. Create accountabilityrequire others to report back,complete task.
Authority should equal responsibility
-
7/28/2019 organizing chapter of management
38/42
Empowerment
Empowerment
Gives people freedom to do their jobs as they
think best.
When delegation is done well, it leads toempowerment.
ORGANIZATIONAL DESIGN TRENDS
-
7/28/2019 organizing chapter of management
39/42
O G O S G S
Organizations are becoming more horizontal
and adaptive
Bureaucracy
Formal authority Rules
Order Fairness
Mechanistic Designs
Bureaucratic Centralized
Vertical structure
Fit between form and external environment
-
7/28/2019 organizing chapter of management
40/42
ORGANIZATIONAL DESIGN TRENDS
Horizontal and Adaptive Organizations
Organic Designs
Adaptable Decentralized
Horizontal Structure
Better suits un-predictable situations
-
7/28/2019 organizing chapter of management
41/42
ORGANIZATIONAL DESIGN TRENDS
Horizontal and Adaptive Organizations
ORGNIZATIONAL DESIGN TRENDS
-
7/28/2019 organizing chapter of management
42/42
Organizations are using more alternative
work schedules
Alternative schedules increase flexibility
and increase satisfaction for employers
and employees
Compressed workweek
Flextime
Job sharing
Telecommuting