GMS Chap 8 Flashcards
Organizing
The process of arranging people and resources to work toward a goal
Organization Structure
A system of tasks, reporting relationships, and comunication linkage
Departmentalization
The process of grouping people and jobs into work units
Functional structure
Group togather people with similar skills who perform similar tasks
5 Adventages of Functional Structure
- Economies of scale with efficient use of resources
- Task assignment consistant with expertise and training
- high quality technical pb solving
- in depth training and skill dvt within function
- Clear career path within function
Disadvantages of functional structures
- difficulty to pinpoint responsabilities
- Functional chimney
- common purpose get lost to self centered and narrow view points
Functional Chemney problem
Lack of comunication and coordination accross functions
Divisional Structure
Groups togather people working on the same product, area, customer, or processes
Divisional Structure:
Product structure
Groups togather people and jobs focused on a single product or service
Divisional Structure:
Geographical structure
groups togather people and jobs performed in the same location
Divisional structure:
Customer Structure
Groups togather people and jobs that serve the same customer or client
Divisional Structure:
Process structure
Groups jobs and activities that are part of the same processes
Work Process
Group of related tasks that togather creat a valuable work product
Advantages of divisional structure
- Flexible in respence to environment changes
- Improve coordination across functional departments
- clear point of responsability
- Experties focused on spé customer, product and region
- Greater ease in changing size
Disadvantages of divisional structures
- reduce economies of scale + increase cost through duplication
- creat unhealthy rivalries
- emphesis on division need to the detriment of the goal of the organization
Matrix Structure
Combines functional and divisional approaches to emphasize project or program teams
Advantages of matrix structure
- Better cooperation accross function
- Improved decision making
- increase flexibility
- better customer service
Improved strategic management