Chapter 3: Organizing Flashcards
organizational structure
arrangement of people and tasks to accomplish organizational goals
formal or informal structure
principles of a bureaucratic organization (6)
hierarchy/chain of command
unity of command
span of control
task specialization (separate divisions or departments)
responsibilities + job description
line and staff functions (line deals with primary output & staff assists line functions)
bureaucracy advantages and disadvantages
+ allows for high level of accomplishment
+ workers know who is responsible for what and whether they have authority to make a given decision
+ facilities vertical integration
+ prevents workers from losing direction
- can be too rigid
- rules + regulations can lead to inefficiency
- frustration caused by red tape
- slower decision making (layers of approvals)
delegation
assigning formal authority and responsibility for accomplishing a specific task to another person
in order to delegate effectively, a manager should… (5)
assign duties to the right people (capable, motivated, responsible…)
delegate the whole task and step back (complete responsibility -> motivated)
give as much instructions as needed (coaching)
retain some important tasks (sensitive tasks)
obtain feedback on delegated task
difference between centralization and decentralization
centralization: extent to which authority is retained at the top of the organization
decentralization: extent to which authority is passed down to lower levels in an organization
- when decisions must be made at lower organizational levels (to be more attentive to market needs)
departmentalization
process of subdividing work into departments
functional
greographic
product/service
functional departmentalization
departments defined by function (eg. accounting)
+ well suited large batches of work + specialization
- people within unit may not communicate with other units
- can have problems due do size + complexity
geographic departmentalization
departments arranged according to geographical area
+ allows for decision making at local level (more attentive to market needs)
- can lead to high costs (duplication of efforts)
- management may experience difficulty in controlling local units
product/service departmentalization
departments arranged according to product/service
+ focus on a product/service, allows each department the maximum opportunity to grow
+ makes sense when product/service has unique demands
- in well run firms, unit cooperate in mutual benefit
- can lead to high costs (duplication of efforts)
- management may experience difficulty in controlling units
alternatives to departmentalization (hierarchy)
project structure matrix organization horizontal structure flat structure informal structure hybrid structure conglomerate
project structure
temporary group of specialists working under one manager to accomplish a fixed objective
- construction, military…
matrix structure
project structure over a functional structure
- capitalises on advantages of both + minimizing disadvantages
- big projects function as mini companies
- may make workers feel confused regarding chain of command
flat structures
organization with relatively few layers of management, making it less bureaucratic
- wider span of control
- shorter chain of command
downsizing
way of simplifying an organization
- make it less bureaucratic
+ reduce costs and increase profits
- can be expensive
for downsizing to help company in the long run (6)
- should be part of business strategy
- eliminate low value activities
- keep future work requirements in hand
- sensible criteria regarding laying off workers
- help laid off workers (assistance + reorientation)
- involve employees in resizing decisions
home shoring
moving customer service into workers’ homes as a form of telecommuting
horizontal structure
arrangement of work by multidisciplinary teams that are responsible for accomplishing a process
- can be considered a team structure
- instead of task focused, workers focus on purpose
reengineering
radical redesign of work to achieve substantial improvements in performance
- searches for the most efficient way to perform a large task
- switching from a vertical (task) emphasis to a horizontal (process) emphasis
informal structures
set of unofficial relationships that emerge to take care of events and transactions not covered by the formal structure
- adds flexibility + speed
- attempt to avoid bureaucracy
social network analysis (informal structures)
mapping and measuring of relationships and links between and among people, groups, and organizations
hybrid structure
combines characteristics from two or more structure types
conglomerate
large company that is really a collection of loosely related independent companies, which is controlled from a headquarters
factors affecting organizational structure
strategy + goals
technology
size of company
financial condition
environmental stability of firm
job design
process of laying out job responsibilities and duties and describing how they are to be performed
four major dimensions of job design
task characteristics
knowledge characteristics
social characteristics
contextual characteristics
task characteristics (job design)
how the work itself is accomplished
sub-dimensions:
- autonomy
- task variety
- task significance (impact on others)
- task identity
- feedback from job
knowledge characteristics (job design)
demand for knowledge
sub-dimensions:
- job complexity
- information processing
- problem solving
- skill variety
- specialization