Professional Documents
Culture Documents
Organizing
The process by which managers establish tasks and working
relationships among employees to achieve goals.
Organizational Structure
Formal system of task and reporting relationships showing how
workers use resources.
Organizational design
The process by which managers make specific choices that result
in a particular kind of organizational structure.
Purposes of Organizing
Determinants of Structure
1.
2.
Strategy
Different strategies require the use of different structures.
A differentiation strategy needs a flexible structure, low cost
may need a more formal structure.
Increased vertical integration or diversification also requires a
more flexible structure.
Determinants of Structure
3.
Technology
The combination of skills, knowledge, tools,
equipment, computers and machines used in
the organization.
More complex technology makes it harder
for managers to regulate the organization.
Organizations utilizing complex technology require a flexible
structure to be managed efficiently.
Types of Technology
78
Determinants of Structure
4.
Human Resources
Highly skilled workers whose jobs
require working in teams usually
need a more flexible structure.
Higher skilled workers (such as
researchers and doctors) often have
internalized professional norms.
Informal structures/groups
Groups that perform any
type of activity, without an
explicit common goal
Networks of people and
relationships, based on
spontaneous individual
affiliations in the work
environment
May include both managers
and ICs
Job Design
The process by which managers decide how to divide tasks into
specific jobs.
Division of Labor
Splitting the work to be performed into particularly impersonal
tasks and assigning tasks to individual workers.
The appropriate division of labor results in an effective and
efficient workforce.
Job Simplification
Reducing the tasks each worker performs: too much
simplification results in boredom.
Job Design
Job Description
Title of Job
Position Description
Reports to: and Direct Reports (Span of Authority)
Job Purpose
Primary Objectives
Specific Duties and Responsibilities of the Job
Qualifications
Job Requirements (Specialized Knowledge, Skills, Abilities, Personal
Characteristics)
Education, Professional Certification, Experience
Physical Demands
Work Environment
Approval (Approved by, Date of approval, Reviewed by)
Employee Acknowledgement (employees and supervisors
signature)
Task identity
Task significance
Autonomy
Feedback
Figure 7.2
Divisional
Structure
Matrix
Structure
Product
Team
Structure
Product
Groups people
and resources by
Product
Permanently
assigned team
members
Groups people
and resources by
Function
Cross-functional
teams
Functions:
Finance/
Accounting
Manufacturing/
Operations/
Services Delivery
Sales/ Marketing
R&D
HR
Infrastructure
(Legal, IT)
Geographic
Market/Customer
Types of Structures
Functional Structure
An organizational structure composed of all the departments
that an organization requires to produce its goods or
services.
Advantages
o Encourages learning from others doing similar jobs.
o Easy for managers to monitor and evaluate workers.
Disadvantages
o Difficult for departments to communicate with others.
o Preoccupation with own department and losing sight of
organizational goals.
The Functional
Structure of
Pier 1 Imports
Figure 7.3
Types of Structures
Divisional Structure
An organizational structure composed of separate business
units within which are the functions that work together to
produce a specific product for a specific customer.
Divisional
Structures
Figure 7.4
Product Structure
Customers are served by self-contained divisions that handle a
specific type of product or service.
Allows functional managers to specialize in one product area.
Division managers become experts in their area.
Removes need for direct supervision of division by corporate
managers.
Divisional management improves the use of resources.
Viacoms 2001
Product
Structure
725
Geographic Structure
Each regional or a country or area with customers with differing
needs is served by a local self-contained division producing
products that best meet those needs.
Global geographic structure
Different divisions serve each world region when managers find
different problems or demands across the globe.
Generally, this structure is adopted when managers are pursuing a
multidomestic strategy.
726
Types of Structures
Matrix Structure
An organizational structure that simultaneously groups
people and resources by function and product.
Results in a complex network of superior-subordinate
reporting relationships.
The structure is very flexible and can respond rapidly to the
need for change.
Each employee has two bosses (functional manager and
product manager) and possibly cannot satisfy both.
Matrix Structure
730
Types of Structures
Product Team Structure
The members are permanently assigned to the team and
empowered to bring a product to market.
Avoids problems of two-way communication and the
conflicting demands of functional and product team bosses.
Cross-functional team is composed of a group of
managers from different departments working together to
perform organizational tasks.
732
Allocating Authority
Staff Manager
Managers who are functional-area specialists that give advice to line
managers.
The Hierarchy of
Authority and Span
of Control at
McDonalds
Corporation
Flat Organizations
Tall Organizations
Integrating Mechanisms
Strategic Alliance
An agreement in which managers pool or share firms resources
and know-how with a foreign company and the two firms share
in the rewards and risks of starting a new venture.
Network Structure:
A series of strategic alliances that an organization creates with
suppliers, manufacturers, and distributors to produce and market
a product.
Network structures allow firms to bring resources together in a
boundary-less organization.
740
Dont