Professional Documents
Culture Documents
Organizing
Organization Structure
Chain of Command:
Line Authority:
Line departments perform the tasks that reflect the organization’s primary
goals. They work directly with customers/products.
Staff Authority:
Departmentalization
– Functional
– Divisional
– Matrix
– Teams
– Virtual Networks
Divisional Structure:
Decision making is pushed down at least one level in the hierarchy, freeing
the president and other top managers for strategic planning
Matrix Approach:
Team Approach:
The vertical chain of command is a powerful means of control, but passing all
decisions up the hierarchy takes too long and keeps responsibility at the top
a) Cross-functional teams
Team members typically still report to their functional departments, but they
also report to the team, one member of whom may be the leader
b) Permanent teams
It is a groups of employees who are organised in a way similar to a formal
department
Each team brings together employees from all functional areas focused on a
specific task or project
Authority is pushed down to lower levels, and front-line employees are often
given the freedom to make decisions and take action on their own
Rather than being housed under one roof, services such as accounting,
design, manufacturing, and distribution are outsourced to separate
organisations that are connected electronically to the central office
The idea behind networks is that a company can concentrate on what it does
best and contract out other activities to companies with distinctive
competence in those specific areas, which enables a company to do more
with less
Excellent
coordination
across functional
departments
???? More efficient use Frustration and confusion
of resources than from dual chain of
single hierarchy command
Quicker decisions
Better morale,
enthusiasm from
employee
involvement
Without coordination, a company’s left hand will not act in concert with the
right hand, causing problems and conflicts
Task Force:
Team:
Project Manager:
Reengineering
Process = organized group of related tasks and activities that work together
to transform inputs into outputs and create value