Ch8-Organization Structure and Design Flashcards
What can you learn from an organization chart?
- division of work
- supervisory relationships
- span of control
- communication channels
- major subunits
- staff positions
- levels of management
Formal structure
The official structure of the organization
Informal structure
The unofficial relationships that form between members
Advantages and disadvantages of informal structure
Problem solving, support, friendship, fills gaps in formal structure
Rumors. Inaccurate information
Functional structures
Group people with similar skills and tasks
Departmentalization
A type of functional structure that Groups people and jobs into a work unit
Advantages of functional structures
Economies of scale make efficient use of human resources
Good at solving technical problems
Promotes skill development
Career paths are available within each function
Disadvantage of formal structure
Communication decrease across functions
Divisional structures
Group together people who work on a similar product, work in the same geographical region, or serve the same customers
Advantages of divisional structures
Expertise on area of focus
Better coordination across functions
Better accountability for product
Easier to grow or shrink in size
Matrix structure
Combine functional and divisional structures
Advantages of matrices
- Performance accountability rests with project/ product manager
- better communications exist across functions
- teams solve problems at their levels
- top managers spend more time on strategy
Team structures
Make use of permanent and temporary cross functional teams
Improved problem solving and project management
Network structures
Consists of a central core with networks of relationships with contractors
Advantages of network structures
Lower costs due to fewer full-time employees
Easy to grow or shrink
Better access to expertise
