Lesson 10 Flashcards
a form of departmentalization in which everyone is engaged in one functional activity (group into one unit).
Functional organization
refers to the organization of a company by divisions (involving a certain product or customer).
Product or Market organization
an organizational structure in which each employee reports to both a functional or decision manager and to a project or group manager.
Matrix organization
Types of Organizational Structure:
- Functional organization
- Product or Market organization
- Matrix organization
the structures are very effective in smaller firms, especially “single-business firms” where key activities revolve around well-defined skils and areas of specialization.
Functional Organization
feature of operating by divisions, is “appropriate for a large corporation with many product lines in several related industries.”
PRODUCT OR MARKET ORGANIZATION
“is a structure with two (or more) channels of command, two lines of budget authority, and two sources of performance and reward.” Defined by?
Thompson and Strickland (MATRIX ORGANIZATION)
declared that “the matrix structure was designed to keep employees in a central pool and allocate them to various projects in the firm according to the length of time they were needed.”
Higgins
Types of Authority:
- Line Authority
- Staff Authority
- Functional Authority
a manager’s right to tell subordinates what to do and then see that they do it.
Line Authority
a staff specialist’s right to give advice to a superior.
Staff Authority
a specialist’s right to oversee lower level personnel involved in that specialty, regardless of where the personnel are in the organization.
Functional Authority
perform tasks that reflect the organization’s primary goal and mission. In a construction firm, the department that negotiates and secures contracts for the firm is a line department. The construction division is also a line function.
Line Departments
include all those that provide specialized skills in support of line departments. Examples of staff departments include those which perform strategic planning, labor relations, research, accounting, and personnel.
Staff Departments
Staff officers may be classified into the following:
- Personal Staff
- Specialized Staff