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
Centralized Organization
concetrates authority on the upper levels
In a centralized organization what organizaion design aspects are of high priority
control efficiency
responsiveness and empwoerment are not
in a decentralized organization what org design aspects are of high an dlow prioity
EMPOWERMETN AND RESPONSIVNESS
control and efficiney are less important
Span of Management
number of workers who resport to on emanager directly
Wide span of management
manager supervises many subordinates
this creates a flatter organization (less levels of management needed)
narrow span of management
manager only has a few subordinates
this creates a taller organization (more management levels of needed)
Organizational height
how many mangerial levels there are
how ot determine organizational height
1) what is the compositon of workforce and business activity
(how much time does every employee need with the amanger)
2) what are compnay objectives for control responsivenss empowerment
Wide span management pro and con
Advantages:
More efficient
more empowerment if employees are granted authority.
Disadvantages:
Less management control
less interaction with management.
Narrow span of managemetn pros and cons
Advantages:
More management control,
more interaction between managers and subordinates, can increase productivity and responsiveness.
Disadvantages:
Higher cost and less empowerment.
Organizaiton chart
visual shows every level and nmaes and roles
3 types of org structures
- line structure: clear lines of communicaiton and fast decision making skills but can cause managers to feel isolated sinc ethey lack resources
- line and staff structure: provides line managers with specialized support but csn create conflicts b/w two types of managers
- matrix stucure: increased flexibility, collaobration, and innovation; but they have two superviosrs and make things complex
Mechanistic vs Organic strucutres
Mechanistic: high job specialization, rigid departmentalization, centralized etc
Organic: low job specialization, flexible departmentalizaiton, wide span of managemern
cross-functional team
a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task
what is the cross funcitonal team an example of
the MATRIX STRUCTURE
corporate culture
the inner customs, traditions, and values of an organization
4 types of corporate culture
CCLAN
ADHOCRACY
MARKET
HIERARCHY
CLAN corp culture
family like type of environemtn rooted in collaboration (leaderhship=mentorship)
Adhocracy corp culture
values individual ingenuity and experimentation, take risks is good
Market culture corp culture
results driven and goal oriented COMPETITIVE
HIERARCHY corp culture
BASED IN STRUCTURE AND CONTROL!!!! VALUES EFFICIECNY AND CONSISTENCT
INFORMAL organization
organizaiton that does not show up on any charts!! steps from personal relationships and informal grapevines
ex of informal orgs
unions and meeting over lunch!!! this can be powerful! can restruct output or help managers thorugh tight spots
if there is a lot of competitors + low profity, what sort of organaization structure does
centralized w line strucutre
