Cp6 Flashcards
Clarify structure to show employees where they fit into a firms into a firms operations
Shows who reports to who and where they belong
Organizational charts
Specification of the jobs to be done within an organization and the ways in which those jobs relate to one another
each box represents a position
Organizational structure
The division of work: identifies specific jobs to be done and designed by people who will perform them
Specialization
When a small business grows so does the need to
Specialize
Advantage of specialization
Workers develop expertise in job
Grouping jobs into logical units
Departmentalization
Grouping accountants (accountant of design, law etc) and putting them together under one boss is example of
Departmentalization
How can we divide up parts of a company?
By dividing by function (marketing, production) dividing by geography (US, Europe)
And dividing by product( home decor, design)
Assigning tasks
Delegation
Companies that keep the power at the top
Centralization
The head of the operational department of McDonalds makes the operations this is exp of
Centralization
Decision making comes from the heads of the departments
Centralization
Lower-level managers make decisions the manager of a certain division
Decentralization
Common in centralized organizations
LOTS of layers of management (when a lot of people report to other people)
SLOWER communication
Narrow spans of control
Tall Organizational Structure
Common in decentralize organizations
Fewer layers of management
RAPID communication
Managers span of control is wide
Flat Organizational Structure
Why isn’t the CEO not making all the decisions in a Flat Organization?
Because that would be to much people to make decisions for
The process be which the manager assigns or gives tasks
Delegation
Delegation Enatails
Responsibility
Granting of authority
Creation of accountability
The duty to perform an assigned task
Responsibility
The power to make decisions necessary to complete the task
Granting of authority
The obligation of employees to successfully complete the tasks (insuring the job is done)
Creation of accountability
Why managers won’t delegate?
The managers think employees are dumb
Manager is a control freak and wants to do things themselves and don’t want anyone else to do it
The lack of ability to explain
The fear that if they show them new tasks they might do it better
Directly involved in what the business does
Operational authority that flows up and down the chain of command
Line Authority
A lawyer who works in a law firm is exp of
Line Authority
Not directly linked to what the business does
Supports the company
Based on special expertise and usually involves counseling or advising managers
Staff Authority
A lawyer who works in the fashion industry and a cost to the fashion industry is exp of
Staff Authority
Forms of Organizational Structure
Functional Divisional Matrix International Virtual
Departments are functions such as operations, marketing, finance, human resources and RD(research and development)
Puts people in functions based on their department
Functional Structure
Advantages of a functional structure
Foster development
Specialized people
Disadvantages of Functional Structure
Centralization
Lack of accountability
Not adaptable to change
Companies organized by product
Relies on departmentalizing
Divisional Structure
Advantages of a Divisional structure
Increase product-focus on internal coordination
Disadvantages of Divisional Structure
Duplication of efforts and competition between divisions
Having multiple marketing directors
Or
A company divided by 3 departments of books games and toys is exp of
Divisional Structure
Functional+Divisional=
Matrix
Disadvantages of a Matrix
Lack of accountability, loss of command and control and impermanent existence
Advantages of Matrix
Everybody is working for the benefit of others
Highly Flexible
Focused on single problem
In Matrix Structure across the top is what and across the side is what?
Across top is divisional
Across side is functional
Companies departments is broken up be region
Sell in global markets
Product changes based on local market
International Structure
The smallest structure of all of the structures
Only has a few permanent employees
Has core employees and majority jobs are somewhere else
Everything company does is outsourced (move business overseas)
Virtual Structure
In the movie Nectar what was their structure?
Functional
In the movie nectar is the power centralized or decentralized?
Decentralized because he doesn’t make decisions the company is very flexible on allowing everyone to make their own decisions
In the movie nectar was it a tall or flat structure?
Flat Structure
