Lesson 4 Flashcards
Organizing Structure Defines:
The set of formal tasks assigned to individuals and departments Formal reporting relationships The design of the systems to ensure effective coordination
Work Specialization
is the degree to which organizational tasks are subdivided into individual jobs; also called division of labor
Chain of Command
is an unbroken line of authority that links all individuals in the organization and specifies who reports to whom
Span of Management-The number of employees reporting to a supervisor
Tall Organizations have more levels and narrow span
S Flat Organizations have a wide span and fewer levels
Centralization
–decision authority is located near the top of the organization
Decentralization
decision authority is pushed downward to all levels
Factors that influence centralization versus decentralization:
Change and uncertainty are usually associated with decentralization
Strategic fit
Crisis requires centralization
TYPES OF ORGANIZATIONAL STRUCTURES: Functional and Divisional Approaches
Vertical Functional Approach
Grouping of positions into departments based on skills, expertise, work activities, and resource use
Divisional Approach
Grouping based on organizational output
Product, Program, Business (self-contained unit) Geographic or Customer-Based Divisions
TYPES OF ORGANIZATIONAL STRUCTURES: Matrix and Team Approaches
Matrix combines functional and divisional approaches
Improve coordination and information
Dual lines of authority
Team approach is a very widespread trend
Allows managers to delegate authority
Flexible, responsive
TYPES OF ORGANIZATIONAL STRUCTURES: Network Approach
Extends idea of horizontal coordination and collaboration
Partnerships
Alliances
Could be a loose interconnected group
i.e. outsourcing Network structure means that the firm subcontracts most of its major functions to separate companies
Need for Change in Organizational Structures
Companies need more flexibility than vertical structure can offer Meet fast-shifting environment Break down barriers between departments
Need integration and coordination
Downsizing
Reducing the company’s workforce to the “right” size; also called downsizing
Make company stronger and more competitive
HR must effectively and humanely manage the process Many organizations use communication and provide assistance to address emotional needs
Downsizing process
Clarify the organization’s strategy
Assess downsizing options and make relevant choices Implement the changes Address the needs of survivors and those who leave
Follow through with growth plans
Rengineering
is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed
Fundamentally rethink the way work gets done
Restructure the organization around the new business processes.
Characteristics of Reengineered Structures
Work units change from functional departments to process teams
* Jobs change from simple tasks to multidimensional work
* People’s roles change from controlled to empowered
* Organization structures change from hierarchical to flat
* Managers change from supervisors to coaches; executives change from scorekeepers to leaders
Task force
a temporary team or committee formed to solve a specific short-term problem involving several departments
Cross-functional Team
furthers horizontal coordination by including members across the organization
Project Manager –
person responsible for coordinating activities of several departments for the completion of a specific project
