Management Ch 10

Front 1

ORGANIZING

Back 1

THE PROCESS OF CREATING AN ORGANIZATION'S STRUCTURE

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ORGANIZATIONAL DESIGN

Back 2

WHEN MANAGERS DEVELOP OR CHANGE AN ORGANIZATION'S STRUCTURE

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ORGANIZATIONAL STRUCTURE

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THE FORMAL FRAMEWORK BY WHICH JOB TASKS ARE DIVIDED, GROUPED, & COORDINATED

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6 KEY ELEMENTS OF ORGANIZATIONAL DESIGN

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1.WORK SPECIALIZATION
2.DEPARTMENTALIZATION
3.CHAIN OF COMMAND
4.SPAN OF CONTROL
5.CENTRALIZATION & DECENTRALIZATION
6.FORMALIZATION

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WORK SPECIALIZATION

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DESCRIBES THE DEGREE TO WHICH TASKS IN AN ORGANIZATION ARE DIVIDED INTO SEPARATE JOBS

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PURPOSES OF ORGANIZING

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1.DIVIDES WORK TO BE DONE INTO SPECIFIC JOBS
2.ASSIGNS TASKS ASSOCIATED WITH INDIVIDUAL JOBS
3.COORDINATES ORGANIZATIONAL TASKS
4.CLUSTERS JOBS INTO UNITS
5.ESTABLISHES RELATIONSHIPS AMONG INDIVIDUALS, GROUPS, & DEPARTMENTS
6.ESTABLISHES FORMAL LINES OF AUTHORITY
7.ALLOCATES & DEPLOYS ORGANIZATIONAL RESOURCES

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HUMAN DISECONOMIES FROM WORK SPECIALIZATION

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1.BOREDOM
2.FATIGUE
3.STRESS
4.POOR QUALITY
5.INCREASED ABSENTEEISM
6.HIGHER TURNOVER

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DEPARTMENTALIZATION

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THE BASIS BY WHICH JOBS ARE GROUPED TOGETHER

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FUNCTIONAL DEPARTMENTALIZATION

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GROUPS JOBS BY FUNCTIONS PERFORMED

Front 10

5 COMMON FORMS OF DEPARTMENTALIZATION

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1.FUNCTIONAL DEPARTMENTALIZATION
2.GEOGRAPHICAL DEPARTMENTALIZATION
3.PRODUCT DEPARTMENTALIZATION
4.PROCESS DEPARTMENTALIZATION
5.CUSTOMER DEPARTMENTALIZATION

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PRODUCT DEPARTMENTALIZATION

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GROUPS JOBS BY PRODUCT LINE

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GEOGRAPHICAL DEPARTMENTALIZATION

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GROUPS JOBS ON THE BASIS OF TERRITORY OR GEOGRAPHY

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PROCESS DEPARTMENTALIZATION

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GROUPS JOBS ON THE BASIS OF PRODUCT OR CUSTOMER FLOW

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CUSTOMER DEPARTMENTALIZATION

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GROUPS JOBS ON THE BASIS OF COMMON CUSTOMERS WHO HAVE COMMON NEEDS OR PROBLEMS THAT CAN BEST BE MET BY HAVING SPECIALISTS FOR EACH

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CROSS-FUNCTIONAL TEAMS

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GROUPS OF INDIVIDUALS WHO ARE EXPERTS IN VARIOUS SPECIALTIES & WHO WORK TOGETHER

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CHAIN OF COMMAND

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THE CONTINUOUS LINE OF AUTHORITY THAT EXTENDS FROM UPPER ORGANIZATIONAL LEVELS TO THE LOWEST LEVELS AND CLARIFIES WHO REPORTS TO WHOM

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AUTHORITY

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THE RIGHTS INHERENT IN A MANAGERIAL POSITION TO TELL PEOPLE WHAT TO DO & EXPECT THEM TO DO IT

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RESPONSIBILITY

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THE OBLIGATION OR EXPECTATION TO PERFORM ANY ASSIGNED DUTIES

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UNITY OF COMMAND

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THE MANAGEMENT PRINCIPLE THAT EACH PERSON SHOULD REPORT TO ONLY 1 MANAGER

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SPAN OF CONTROL

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THE NUMBER OF EMPLOYEES A MANAGER CAN EFFECTIVELY CONTROL

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FACTORS INFLUENCING THE APPROPRIATE NUMBER OF EMPLOYEES THAT A MANAGER CAN EFFICIENTLY & EFFECTIVELY MANAGE

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1.THE SKILLS & ABILITIES OF THE MANAGER
2.THE EMPLOYEES & CHARACTERISTICS OF THE WORK BEING DONE

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WIDE SPANS OF CONTROL

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1.THE WIDER OR LARGER THE SPAN THE MORE EFFICIENT THE ORGANIZATION
2.THE TREND IN RECENT YEARS HAS BEEN TOWARD LARGER SPANS OF CONTROL
3.WIDE SPANS ARE CONSISTENT WITH MANAGERS' EFFORTS TO REDUCE COSTS, SPEED UP DECISION MAKING, INCREASE FLEXIBILITY, GET CLOSER TO CUSTOMERS, & EMPOWER EMPLOYEES

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CENTRALIZATION

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THE DEGREE TO WHICH DECISION MAKING IS CONCENTRATED AT A SINGLE POINT IN THE ORGANIZATION

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2 MODES OF ORGANIZATIONAL DESIGN

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1.MECHANISTIC
2.ORGANIC

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DECENTRALIZATION

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THE DEGREE TO WHICH LOWER-LEVEL EMPLOYEES PROVIDE INPUT OR ACTUALLY MAKE DECISIONS

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FORMALIZATION

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THE DEGREE TO WHICH JOBS WITHIN THE ORGANIZATION ARE STANDARDIZED AND THE EXTENT TO WHICH EMPLOYEE BEHAVIOR IS GUIDED BY RULES & PROCEDURES

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MECHANISTIC ORGANIZATION

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AN ORGANIZATIONAL DESIGN THAT'S RIGID & TIGHTLY CONTROLLED

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CHARACTERISTICS OF MECHANISTIC ORGANIZATIONS

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1.HIGH SPECIALIZATION
2.RIGID DEPARTMENTALIZATION
3.NARROW SPANS OF CONTROL
4.HIGH FORMALIZATION
5.LIMITED INFORMATION NETWORK
7.LITTLE PARTICIPATION IN DECISION MAKING BY LOWER-LEVEL EMPLOYEES

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ORGANIC ORGANIZATION

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AN ORGANIZATIONAL DESIGN THAT'S HIGHLY ADAPTIVE & FLEXIBLE

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CONTINGENT FACTORS APPROPRIATE STRUCTURE

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1.ORGANIZATION'S STRATEGY
2.SIZE
3.TECHNOLOGY
4.DEGREE OF ENVIRONMENTAL UNCERTAINTY

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3 DIMENSIONS OF CURRENT STRATEGY FRAMEWORKS

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1.INNOVATION
2.COST MINIMIZATION
3.IMITATION

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INNOVATION

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THE ORGANIZATION'S PURSUIT OF MEANINGFUL & UNIQUE INNOVATIONS

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COST MINIMIZATION

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THE ORGANIZATION'S PURSUIT OF TIGHTLY CONTROLLED COSTS

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IMITATION

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REFLECTS AN ORGANIZATION'S SEEKING TO MINIMIZE RISK & MAXIMIZE PROFIT OPPORTUNITIES BY COPYING THE MARKET LEADERS

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3 CATEGORIES OF TECHNOLOGY & STRUCTURE

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1.UNIT PRODUCTION
2.MASS PRODUCTION
3.PROCESS PRODUCTION

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UNIT PRODUCTION

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THE PRODUCTION OF ITEMS IN UNITS OR SMALL BATCHES

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MASS PRODUCTION

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LARGE-BATCH MANUFACTURING

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PROCESS PRODUCTION

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THE PRODUCTION OF ITEMS IN CONTINUOUS PROCESSES

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COMMON ORGANIZATIONAL DESIGNS

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1.TRADITIONAL
2.CONTEMPORARY

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TRADITIONAL ORGANIZATIONAL DESIGNS (MECHANISTIC)

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1.SIMPLE STRUCTURE
2.FUNCTIONAL STRUCTURE
3.DIVISIONAL STRUCTURE

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SIMPLE STRUCTURE

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ORGANIZATIONAL DESIGN WITH LOW DEPARTMENTALIZATION, WIDE SPANS OF CONTROL, AUTHORITY CENTRALIZED IN A SINGLE PERSON, & LITTLE FORMALIZATION

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FUNCTIONAL STRUCTURE

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ORGANIZATIONAL DESIGN THAT GROUPS RELATED OCCUPATIONAL SPECIALTIES TOGETHER, DEPARTMENTALIZATION APPLIED TO THE ENTIRE ORGANIZATION

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DIVISIONAL STRUCTURE

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ORGANIZATIONAL STRUCTURE MADE UP OF SEPARATE UNITS OR DIVISIONS. EACH UNIT OR DIVISION HAS LIMITED AUTONOMY, WITH A DIVISION MANAGER RESPONSIBLE FOR PERFORMANCE & WHO HAS STRATEGIC AUTHORITY OVER HIS UNIT

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CONTEMPORARY ORGANIZATIONAL DESIGNS

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1.TEAM-BASED STRUCTURES
2.MATRIX STRUCTURE
3.AUTONOMOUS INTERNAL UNITS
4.BOUNDARYLESS ORGANIZATION
5.LEARNING ORGANIZATION

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TEAM-BASED STRUCTURE

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AN ORGANIZATIONAL STRUCTURE IN WHICH THE ENTIRE ORGANIZATION IS MADE UP OF WORK GROUPS OR TEAMS

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MATRIX STRUCTURE

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AN ORGANIZATIONAL STRUCTURE THAT ASSIGNS SPECIALISTS FROM DIFFERENT FUNCTIONAL DEPARTMENTS TO WORK ON 1 OR MORE PROJECTS BEING LED BY PROJECT MANAGERS

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2 MANAGERS OF EMPLOYEES IN A MATRIX ORGANIZATION

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1.FUNCTIONAL DEPARTMENT MANAGER
2.PRODUCT OR PROJECT MANAGER

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PROJECT STRUCTURE

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MORE "ADVANCED TYPE" OF MATRIX WHERE EMPLOYEES CONTINUOUSLY WORK ON PROJECTS, HAS NO FORMAL DEPARTMENTS TO WHICH EMPLOYEES RETURN AT THE COMPLETION OF A PROJECT

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AUTONOMOUS INTERNAL UNITS

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SEPARATE DECENTRALIZED BUSINESS UNITS, EACH WITH ITS OWN PRODUCTS, CLIENTS, COMPETITORS, & PROFIT GOALS

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BOUNDARYLESS ORGANIZATION

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AN ORGANIZATION WHOSE DESIGN IS NOT DEFINED BY, OR LIMITED TO, THE HORIZONTAL, VERTICAL, OR EXTERNAL BOUNDARIES IMPOSED BY A STRUCTURE

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IDEAL BOUNDARYLESS ORGANIZATION

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1.ELIMINATE THE CHAIN OF COMMAND
2.HAVE APPROPRIATE SPANS OF CONTROL
3.REPLACE DEPARTMENTS WITH EMPOWERED TEAMS

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LEARNING ORGANIZATION

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AN ORGANIZATION THAT HAS DEVELOPED THE CAPACITY TO CONTINUOUSLY ADAPT & CHANGE BECAUSE ALL MEMBERS TAKE AN ACTIVE ROLE IN IDENTIFYING & RESOLVING WORK-RELATED ISSUES

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IMPORTANT CHARACTERISTICS OF A LEARNING ORGANIZATION

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1.ORGANIZATIONAL DESIGN
2.INFORMATION SHARING
3.LEADERSHIP
4.CULTURE

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2 POPULAR DEPARTMENTALIZATION TRENDS

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1.CUSTOMER DEPARTMENTALIZATION IS INCREASINGLY BEING USED AS AN APPROACH TO BETTER MONITOR CUSTOMERS' NEEDS & TO BE BETTER ABLE TO RESPOND TO CHANGES IN THOSE NEEDS
2.MANAGES ARE USING CROSS-FUNCTIONAL TEAMS