Ch6 Flashcards
Key functions that managers perform
Planning, organizing, leading, and controlling.
Division of labour
Determining work activities and dividing up tasks
Departmentalization
Grouping jobs and employees
Delegation
Assigning authority and responsibilities
Organization
Order and design of relationships within a company or firm. Consists of two or more people working together with a common objective and clarity of purpose.
Not involved in operations
Shareholders vote for who sits on the board of directors and they represent shareholders to management
Management
Management execute the goals and policies outlined by the board of directors. The number of layers of management will depend on the organizational structure
Execute the plan
Employees follow the directions of their managers
Forms of organizational structures
Traditional, matrix, and departmentalization
Departmentalization structure
Divides the organization into logical division’s where each division works as a separate unit
Product departmentalization
Where the structure is set up so that each section contains a separate product
Functional departmentalization
An organization is organized into departments based upon the respective functions each performs for the organization.
Advantages of departmentalization structure
• Reporting structure is clear. Relationships and job responsibilities may be clear and defined.
• Power struggles may be less frequent. Fewer battles within the department, as all everyone
should be aligned with a common purpose
• Higher performance. Employees working in focused groups may experience increased
feelings of ownership, commitment, and motivation.
Disadvantages of departmentalization structure
• Power struggles. Managers in different departments may have different goals, management
styles and needs, resulting in a battle for power, resources and influence in the direction of the
overall company
• Lack of cohesiveness. Team members from different departments may have difficulty
communicating effectively and working together as a team.
• Teamwork. By separating the skills and abilities of various specialists, the company can decrease
creativity and innovation.
• Lacks Flexibility. The structure can be less flexible because each department is siloed off from
the others, making it harder to collaborate with other departments.
Matrix structure
Used in conjunction with the traditional line and staff structure in an organization. Brings together people from different functional areas of the organization
Advantages of matrix structure
- teamwork
- efficient use of resources
- flexibility
- ability to balance conflicting objectives
- higher performance
- opportunities for personal and professional development.
Disadvantages of matrix structure
- power struggles
- confusion among team members
- lack of cohesiveness
