Chapter 10: Organising Flashcards
What is departmentalisation?
The grouping together of people and jobs into work units.
What are functional structures?
People with similar skills and of whom perform similar tasks are formally grouped together into work units. They have the same technical skills. Examples include, in a university, faculties of Commerce, Arts, Science, etc.
What are some advantages of functional structures?
Efficient use of resources
High quality problem solving
Jobs are consistent with expertise
In depth training
What are some disadvantages of functional structures?
Functional chimney problems - the lack of communication, coordination and problem solving across function groups
Departure from organisational goals
Slower response to market changes
Limits customer attention
What are divisional structures?
Groups together people based on the product or process they are working on, customer base or geographical location.
What are some advantages of divisional structures?
More flexibility in response to changes in the environment
Expertise focused on specific customers, products or regions
Improved coordination across functional departments
Greater ease in changing size by adding/subtracting divisions
What are some disadvantages of divisional structures?
Increased costs through the duplication of resources and efforts across divisions
May promote unhealthy rivalries across divisions
Coordination difficulties between division and corporate objectives
What are matrix structures?
Combines functional and divisional approaches to emphasise project teams. It is an attempt to gain the advantages and minimise the disadvantages of each.
Workers in a matrix structure belong to at least two formal groups at the same time - a functional group and a product, project or program team. They also report to two bosses - one within the function and the other within the team.
What are some advantages of matrix structures?
Increased flexibility in adding, removing and/or changing operations to meet changing demands
Better customer service since there is always a team manager informed and available to answer questions
Improved decision making as problem solving takes place at the team level Improved strategic management as top managers are freed from unnecessary decision making
What are some disadvantaged of matrix structures?
Power struggles as functional supervisors and team leaders may be against one another to exercise authority
Two-boss system can be frustrating if it creates task confusion and conflict Team-meetings are time consuming
Increased costs to add team leaders
May lose sight of organisational goal due to team loyalties
Why do organisations use team structures?
To solve complex problems and accomplish tasks. Teams are the building blocks and are often cross-functional, so as to create better relationships. Project teams also exist (recall from Week 9).
What are some advantages of team structures?
Implemented when communication is an issue due to functional chimneys problem
Boosts morale as team members get to know one another (from different areas)
Improved speed and quality of decisions as teams focus shared knowledge and expertise on specific problems.
What is a network structure?
Links networks of outside suppliers and service contractors to a company’s core functions. Used to network so as to reduce costs of employing people. Only core components are actually owned.
What are some advantages of network structures?
Costs can be cut
Increased efficiency
Allows for outsourced specialised function groups
What is organising?
Organising is the process of assigning tasks, allocating resources and arranging activities to implement plans.
