Management & Organization Behavior class Three different Discussions
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IPPTChap008.pptxOrganization Structure
Chapter Eight
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objectives
LO 1 Explain how differentiation and integration influence an organization’s structure.
LO 2 Summarize how authority operates.
LO 3 Define the roles of the board of directors and the chief executive officer.
LO 4 Discuss how span of control affects structure and managerial effectiveness.
LO 5 Explain how to delegate effectively.
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Learning Objectives (cont.)
LO 6 Distinguish between centralized and decentralized organizations.
LO 7 Summarize the ways organizations can be structured.
LO 8 Identify the unique challenges of the matrix organization.
LO 9 Describe important integrative mechanisms.
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Fundamentals of Organizing
Organization chart
The reporting structure and division of labor in an organization
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Conventional Organization Chart
Figure 8.1
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Fundamentals of Organizing
Differentiation
the organization is composed of many different units that work on different kinds of tasks, using different skills and work methods.
Integration
degree to which differentiated work units work together and coordinate their efforts
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Differentiation
Division of labor
The assignment of different tasks to different people or groups
Specialization
A process in which different individuals and units perform different tasks
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Integration
Coordination
The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission
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Authority in Organizations
Authority
The legitimate right to make decisions and to tell other people what to do.
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Authority in Organizations
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Board of Directors
Chief Executive Officer
Top Management Team
Hierarchical Levels
Hierarchy
The authority levels of the organizational pyramid
Corporate governance
The role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders
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Span of Control
Span of control
The number of subordinates who report directly to an executive or supervisor
Tall, flat
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Question
What is the assignment of new or additional responsibilities to a subordinate?
Subordination
Delegation
Designation
Allocation
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The correct answer is b - delegation. See next slide
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Delegation
Delegation
The assignment of new or additional responsibilities to a subordinate
Responsibility, Authority, and Accountability
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Delegation
Responsibility
The assignment of a task that an employee is supposed to carry out
Accountability
The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance
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Advantages of Delegation
Leverages managers’ energy and talent
Allows managers to accomplish more than they could on their own
Helps develop effective subordinates.
Promotes a sense of being an important, contributing member of the organization, so employees tend to feel a stronger commitment, perform their tasks better, and engage in more innovation
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Steps in Effective Delegation
Figure 8.2
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Decentralization
Centralized organization
An organization in which high-level executives make most decisions and pass them down to lower levels for implementation
Decentralized organization
An organization in which lower-level managers make important decisions
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The Horizontal Structure
Line departments
Units that deal directly with the organization’s primary goods and services
Staff departments
Units that support line departments
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The Functional Organization
Functional organization
Departmentalization around specialized activities such as production, marketing, and human resources.
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The Functional Organization
Figure 8.3
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Advantages of Functional Organizations
Economies of scale can be realized
Monitoring of the environment is more effective
Performance standards better maintained
Greater opportunity for specialized training and skill development
People have greater opportunity for specialized training and in-depth skill Development
Decision making and lines of communication are simple and clearly understood
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The Divisional Organization
Divisional organization
Departmentalization that groups units around products, customers, or geographic regions.
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Advantages of the Product Approach
Information needs are managed more easily
People have a full-time commitment to a particular product line
Task responsibilities are clear
People receive broader training
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The Divisional Organization
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The Matrix Organization
Matrix organization
An organization composed of dual reporting relationships in which some managers report to two superiors—a functional manager and a divisional manager
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Matrix Organizational Structure
Figure 8.5
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Advantages of a Matrix Design
Table 8.2
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Disadvantages of a Matrix Design
Table 8.2
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The Network Organization
Network organization
A collection of independent, mostly single-function firms that collaborate on a good or service
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A Network Organization
Figure 8.7
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The Network Organization
Dynamic network
Temporary arrangements among partners that can be assembled and reassembled to adapt to the environment
Broker
A person who assembles and coordinates participants in a network
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Question
___________ is establishing common routines and procedures that apply uniformly to everyone.
Coordination by standardization
Coordination by plan
Coordination by mutual adjustment
Coordination by service
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The correct answer is a - standardization. See next slide
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Coordination by Standardization
Standardization
Establishing common routines and procedures that apply uniformly to everyone.
Formalization
The presence of rules and regulations governing how people in the organization interact.
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Coordination by Plan
Coordination by plan
Interdependent units are required to meet deadlines and objectives that contribute to a common goal
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Coordination by Mutual Adjustment
Coordination by mutual adjustment
Units interact with one another to make accommodations to achieve flexible coordination
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Reducing the Need for Information
Slack resources
extra resources on which organizations can rely in a pinch so that if they get caught off guard, they can still adjust
Creating self-contained tasks
changing from a functional organization to a product or project organization and giving each unit the resources it needs to perform its task
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Increasing Information-Processing Capability
Direct contact among managers who share a problem
Liaison roles to handle communication between two departments
Task forces brought together temporarily to solve a common problem
Teams, or permanent interdepartmental decision-making groups
Product, program, or project managers
Matrix organizations
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Managing High Information- Processing Demands
Figure 8.8
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Video: New Belgium Brewery
Is New Belgium Brewery a centralized or decentralized organization?
How does this make them more effective?
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