Chapter 8 Flashcards
Organization Design
the process of grouping employees into departments and organizign thei rleaders
4 objectives when building na organization
efficiency
control
responsivness
empowerment
Efficiency
do all firms value this
ability to complete a task using the minimum amount of resources
NO! mcDonalds does bc FAST food, but hospitals no!
Control
do all firms value this
who has the ability to make decisions? employees or managers?
in accounting firms employers have strict control adn standards
in animation studieso people are encouraged to be creative
Responsiveness
do all firms value this
how fast the company responds to customer feedback and suggetions from employees
apple phones vs farmers
Empowerment
do all firms value this
how much control do employees have over decision making in their own work
related to customer srvice situations
not all
**********wo types of departmentalization
The Most Common Forms of Departmentalization
» The most common forms of departmentalization are by function, by product, by location, and by customer. Departmentalization by function groups employees who perform the same organizational activity. Under this method, all marketing personnel are grouped together in the marketing department, all production personnel in the production department and so on. Most smaller and newer organizations departmentalize by function. Supervision is simplified because everyone is involved in the same activities which makes coordination easy. The disadvantages of this method are that it can lead to slow decision-making and can lead to silos where employees tend to emphasize the needs of their department over the needs of the whole organization. Departmentalization by product groups employees who work with a particular good or service sold by the firm. Larger firms that produce and sell a variety of products often use this approach. Each department handles its own marketing, production, financial management, and human resources activities. Departmentalization by product makes decision-making easier and can improve responsiveness to market needs. However, it creates inefficiency because of duplication of some specialized activities such as finance and human resources. Departmentalization by location groups employees according to the geographic area they serve. Departmental areas may range from whole countries for international firms to regions within countries for national firms to areas of several city blocks for police departments organized into precincts. Departmentalization by location can improve responsiveness to the unique demands or requirements of different locations. The more distinct the needs of customers in the different geographies, the more useful departmentalization by location can be. Departmentalization by customer groups employees according to the needs of various customer populations. A local car dealership, for example, may have one sales staff to deal with individual consumers and a different sales staff to work with corporate fleet buyers. The obvious advantage of this approach is that it allows the firm to deal effectively with unique customer groups. The biggest drawback is that it can be difficult to coordinate resource needs such as inventory or administrative staff. In most cases, companies that departmentalize by product, location, or customer ultimately departmentalize those various divisions by function as well.
4 types of departmentatlizionnt
- function
- geography
- customer
- product
Job design
structure of the tasks and activities requried to achieve goals; separating the bigger job into specfiic specailized jobs to bolster satisfaction
Job Specialization
separting orgnaizational acitivies into distinct taks, assignemning diff tasks to diff people
WORKERS ofcused on 1 task
does job speciialization always work?
NO! people get bored of doing monotonus tasks, you need job variety
Job Rotation
systematic shifting of employees from job A to job B
SHORT TERM ASSIGNMENTS
Why is job rotation good for
task variety: degree that a job required diff activities
task idetntity: how does each task contribute to final product
task significance: how important this task is to the final product
How doeS delegation work
Manager, assigns tasks, grants authority, assigns accountability, gives to Worker
Decentralized organization
management delegates a lot and spreads out authority
