Professional Documents
Culture Documents
Organizing
The deployment of organizational resources to achieve strategic goals. The deployment of resources is reflected in the division of labor. Formal lines of authority and mechanisms for coordinating diverse organization tasks.
Integration means that the various units must be put back together so that work is coordinated.
Organizing Process
Differentiation Specialization Delegation of Authority Integration
Purposes of Organizing
Divides work to be done into specific jobs and departments. Assigns tasks and responsibilities associated with individual jobs. Coordinates diverse organizational tasks. Clusters jobs into units. Establishes relationships among individuals, groups, and departments. Establishes formal lines of authority. Allocates and deploys organizational resources.
Organizational Structure
Authority
(Basic Need)
The rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility
Costs:
Human costs when carried too far Job enlargement as a solution
different person.
Overspecialization can result in human
Element 2: Departmentalization
Basis by which jobs are grouped together so that common tasks can be coordinated Common bases:
Function Product Geography Process Customer
Departmentalization by Type
A) Functional Grouping jobs by functions performed B) Product Grouping jobs by product line C) Geographical Grouping jobs on the basis of territory or geography D) Process Grouping jobs on the basis of product or customer flow E) Customer
A) Functional Departmentalization
Groups Job According To Functions
B) Geographical Departmentalization
C) Product Departmentalization
D) Process Departmentalization
+ More efficient flow of work activities Can only be used with certain types of products
E) Customer Departmentalization
+ Customers needs and problems can be met by specialists - Duplication of functions - Limited view of organizational goals
Authority: positional rights Unity of Command principle: one boss Fewer organizations find this is relevant
Decentralization
Organizations in which decision making is pushed down to the managers who are closest to the action.
Environment is stable. Lower-level managers are not as capable or experienced at making decisions as upper-level managers. Lower-level managers do not want to have a say in decisions. Decisions are relatively minor. Organization is facing a crisis or the risk of company failure. Company is large.
Effective implementation of company strategies depends on managers retaining say over what happens.
Environment is complex, uncertain. Lower-level managers are capable and experienced at making decisions. Lower-level managers want a voice in decisions. Decisions are significant. Corporate culture is open to allowing managers to have a say in what happens.
Element 6: Formalization
Degree to which jobs within the organization are standardized
Formal = minimum discretion over what is to be done, when it is done, and how Informal = freedom to act is necessary & fewer
constraints on how employees do their work.
3) Divisional structure Composed of separate business units or divisions with limited autonomy under the coordination and control the parent corporation.
1) Simple structure
2) Bureaucracy 3) Matrix structure
1.Simple Structure
Low degree of departmentalization Wide spans of control Authority centralized in a single person Little formalization Difficult to maintain in anything other than small organizations
2.Bureaucracy
Highly routine operating tasks achieved through specialization
Formal rules and regulations Centralized authority
Matrix Structure
Combines two forms of departmentalization
Functional Product
Disadvantages:
Possible confusion, fosters power struggles, stress
High specialization Rigid departmentalization Clear chain of command Narrow spans of control
Centralization
High formalization
2. Organization Size
Bigger becomes mechanistic Firms change from organic to mechanistic organizations as they grow in size.
3. Technology
Routine equals mechanistic, non routine is organic. Firms adapt their structure to the technology they use. Dynamic environments require organic structures; mechanistic structures need stable environments.
4. Environment
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