Chapter 7 - Organizing Flashcards
Organizing
- Process of assigning tasks, allocating resources, and coordinating work activities to work toward a common goal
- Arranges people and resources
(divides up the work, arranges resources, coordinates activities) - 2nd Function of Managers
- Has formal and informal structures
Organization Structure
A formal arrangement of tasks, reporting relationships, and communication that links people and positions within an organization
Organization charts
a diagram of positions—job titles, and reporting relationships—the hierarchy of authority, within a team or organization
Describe the formal structure and how an organization should ideally work
Division of labor
assigns important tasks to individuals and groups.
Formal structure
the official structure of the organization.
Informal structure
or shadow organization is the network of unofficial relationships among an organization’s members.
- Positives -> can connect people to get things done, learn new jobs, solve problems
- Negatives -> Work against the best interest of org as a whole.. Susceptible to rumor, carry inaccurate information, breed resistance to change, distract members from work. Also creates, “insider” and “outsider”
Social network analysis
identifies the informal structures and their embedded social relationships that are active in an organization.
Basically, identifies active informal structures
Functional structures
Group people together based on similar skills
- Work best for small companies that produce only one or a few items (stable environment, problems are predictable)
- Includes departmentalization
Divisional structures
Groups together people working on the same product, in the same area, or with similar customers. (product, customers, or locations)
- Intent is to overcome the disadvantages of a functional structure (like functional chimney problem)
Matrix structures
Combine both functional and divisional structures to gain the advantages of each
- Set up permanent cross functional teams that operate across functions. Members belong to at least two formal groups - divisional and formal group. (Also report to 2 bosses)
Disadvantages - can be confusing, costly, time-consuming
Functional chimneys
or functional silos problem is a lack of communication and coordination across functions
- Instead of cooperating, members compete with one another
- Too little communication, problems are referred upward
Product structure
Groups together people and jobs working on a single product or service.
- Identify a common point of managerial responsibility for costs, profits, problems, and successes
- Form of divisional structure
Geographical structure
brings together people and jobs performed in the same location. (ex. UPS)
- Form of divisional structure
Potential advantages of divisional structure
- Expertise focused on special products, customers, or regions
- Better coordination exists across functions within organization
- Better accountability
- Easier to grow or shrink in size as conditions change
Customer structure
groups together people and jobs that serve the same customers or clients.
- Form of divisional structure
- Useful in service companies, and social agencies
Disadvantages of divisional structure
Costly, cause unhealthy rivalries b/w divisions
Cross-functional teams
Used in matrix organizations. Brings together members from different functional departments to work on a common task.
- 2 boss system can be confusing, costly, time-consuming
Potential advantages of functional structures
- Economies of scale make efficient use of human resources.
- Functional experts are good at solving technical problems.
- Training within functions promotes skill development.
- Career paths are available within each function.
Potential advantages of matrix structures
- Performance accountability rests with program, product, or project managers.
- Better communication exists across functions.
- Teams solve problems at their levels.
- Top managers spend more time on strategy.
Team structures
Uses permanent and temporary cross-functional teams to improve lateral relations. to solve problems, complete special projects
- Better communication and problem solving
Possible advantages of team structures
- Team assignments improve communication, cooperation, and decision making.
- Team members get to know each other as persons, not just job titles.
- Boost morale, and increase enthusiasm and task involvement.
Network Structures
Consist of a central core of full-time employees with networks of relationships with contractors to do business needs
- Contractors and network partners supply essential services
Possible advantages of network structures
Lower costs due to fewer full-time employees. (cost)
• Better access to expertise through specialized alliance partners and contractors. (speed)
• Easy to grow or shrink with market conditions. (flexibility)
Virtual organizations
Network that depends on information technology to link alliances
- uses information technologies to operate as a shifting network of alliances.
