(4) organizational structures Flashcards
centralization
the extent to which power and authority are retained at the top organizational levels
decentralization
the extent to which power and authority are delegated to lower levels
accountability
the requirement to provide satisfactory reasons for significant deviations from duties or expected results
delegation
the assignment of part of a manager`s work to others, along with both the responsibility and the authority necessary to achieve expected results
tall structure and flat structure
tall - a structure that has many hierarchical levels and narrow spans of control
flat - a structure that has few hierarchical levels and wide spans of control
downsizing (tall structure)
tthe process of significant reducing the layers of middle management, increasing the spans of control, and shrinking the size of the work
restructuring (tall structure)
the process of making a major change in organization structure that often involves reducing management levels and possibly changing components of the organization through divestiture and/or acquisitation, as well as shrinking the size of the work force
line position (tall structure)
has authority and responsibility for achieving the major goals of the organization
staff position (tall structure)
its primary purpose is providing specialized expertise and assistance to line positions
authority (tall structure)
line authority - follows the chain of command established by formal hierarchy
functional authority - authority of staff dept. over others in the organization in matters related to their functions
functional structure
positions are grouped according to their main functional (or specialized) area
adv: develop expertise, clear career path w/o function, efficient use resources, possible economies of scale, ease of coordination within function, technical adv over competitors
disadv: slow response on multifunctional probs, backlog of decisions at top of hierarchy, bottlenecks due to sequential tasks, restricted view of org, inexact measurement of performance, narrow training for managers
divisional structure
a structure in which positions are grouped according to similarity of products, services, or markets
adv: fast response to env change, simplified coordination across functions, same emphasis on division goals, strong orientation to customer requirements, accurate measurement of division performance, broad training in general management
disadv: duplicates of resources in divisions, reduction of expertise, high competition among divisions, limited sharing of expertise among divisions, restricted innovation to divisions, neglect of overall goals
forms of divisional structure
1) product division - made to focus on a single product/service at a homogenous set of product/services
2) geographic - division designed to serve diff geographic areas
3) customer- division set up to service specific types of clients or customers
hybrid structure
a structure that adopts parts of both functional and divisional structures at the same level of management
adv: aligned corporate & divisional goals, functional expertise/efficiency, adaptable and flexible in divisions
disadv: conflicts btw corporate depts. and divisions, excessive admin overheads, slow response to exceptional situations
matrix structure
a structure that superimposes a horizontal set of divisional reporting relationships onto a hierarchical functional structure
adv: decentralized decision making, strong project/product coordination, improved env monitoring, fast response to change, flexible use of human resources, efficient use of support systems
disadv: high admin costs, confusion over authority & responsibility, high prospects for interpersonal conflicts, excessive focus on internal relations, overemphasis on group decision making, possible slow response to change
