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module 5/Lesson 1: Traditional Organizational Structures: Business Leadership: Management Fundamentals.pdf

Lesson 1: Tradi!onal Organiza!onal

Structures In this lesson, we will study the four traditional organizational structures:

Functional Divisional Hybrid Matrix

What is organizing? Organizing is the process of bringing people and resources together to work toward a goal. Organizing creates structures to divide up the work, arrange the resources, and coordinate activities. Organizing identifies who does what, who is in charge of whom, and how different parts of the business relate to and work with one another. Organizing is one of the four fundamental functions of a manager along with leading, planning, and controlling.

What is Organizational Structure?An organizational structure is a formal arrangement that shows how divisions, departments, functions, and people link together and interact. These organizational workflows are depicted in a diagram called an organizational chart. The organizational chart represents the way the organization is intended to function. By examining the organizational chart of a business, there are certain things you should be able to learn.

Work Responsibilities What the positions and job titles are. Supervisory Relationships What the supervisory lines are and who reports to whom. Communication Channels What the connecting lines are and how the formal communication flows. Levels of Management What the vertical layers of management are.

The traditional organizational structure is based on a hierarchy. The vertical hierarchy shows the chain of command. The horizontal element of the chart shows the different jobs or work specialization.

Tradi!onal Organiza!onal Structures

The first decision in creating an organizational structure is to decide how to group people and jobs into work units. This process is called departmentalization. On what basis will jobs be grouped together? Some common bases are:

Function

Function Product Customer Territory.

The four traditional organizational structures commonly used throughout the 20th century are:

Functional Divisional Hybrid Matrix

Func!onal Structure

In a functional structure, people performing similar tasks are grouped together. Members of functional departments share skills, technical expertise, and responsibilities. This structure works best for businesses that produce only one product or service.

Divisional Structure

In a divisional structure people, jobs, and activities are together based on:

The product produced or service provided, Process, Customer or client served, and Geographic area.

Hybrid Structure: A hybrid structure combines different types of divisional structure in the same organization. The larger the organization, the more likely it is that the organization will use a hybrid

organization. The larger the organization, the more likely it is that the organization will use a hybrid structure.

Matrix Structure: The matrix structure combines the functional and divisional structures. The people in a matrix structure belong to two formal groups at the same time, a functional group, and a project team. This distinction means they report to two supervisors. Matrix structures allow cross-functional teams to share expertise and information quickly to solve problems.

__MACOSX/module 5/._Lesson 1: Traditional Organizational Structures: Business Leadership: Management Fundamentals.pdf

module 5/Lesson 2: Trends in Organizational Structures: Business Leadership: Management Fundamentals.pdf

Lesson 2: Trends in Organiza!onal

Structures Learning Goals: Today, we will study current organizational structures including

Team Network Noundaryless Organization Virtual Organization.

Current Organiza!onal Structures

The realities of today’s global economy demand that competitive businesses must have organizational structures that are flexible and allow people to solve problems quickly. The matrix structure is a first step toward improving flexibility and getting people to work together in cross-functional teams. Matrix structures are now part of a trend in organizational structures toward less hierarchy and more empowerment of employees. Information technology facilitates the new organizational structures.

Team Structure

One potential disadvantage of the traditional functional structure is the tendency toward a lack of communication, coordination, and problem-solving across functions. This is referred to as the functional chimney problem. Functional departments may have a narrow viewpoint and lack a company-wide perspective. When conflicts occur between functional departments, (e.g., the marketing department and the accounting department), the problems are often referred to higher-levels of management which slows decision-making and problem-solving. To prevent the problems of functional chimneys, many of today’s organizations are using team structures. A matrix structure is one example of a team structure. In a team structure, both permanent and temporary cross-functional teams are used to solve problems, complete special projects, and accomplish day-to-day tasks.

Network Structure

Organizations do not need to perform all their functions in-house. Sometimes, it is a bad idea to try

Organizations do not need to perform all their functions in-house. Sometimes, it is a bad idea to try performing all functions in-house. In a network structure, businesses concentrate on their strengths and work with outside suppliers and business partners for the other necessary functions.

Commonly outsourced functions include cleaning, accounting, and legal services. This means that the business hires outside agencies or individuals to supply these services instead of hiring custodians, accountants, or lawyers as employees of the business. A strategic alliance or joint venture occurs when two or more organizations join together to pursue an area of mutual interest.

Four Advantages of Outsourcing (https://brightmindsonlineschool.instructure.com/courses/172/files/7411/download?wrap=1) Minimize File Preview

ZOOM

Boundaryless Organiza!ons

The boundaryless organization is a model that views organizations as having permeable boundaries. An organization has external boundaries that separate it from its suppliers and customers, and internal boundaries that provide demarcation to departments. This rigidity is removed in boundaryless organizations, where the goal is to develop greater flexibility and responsiveness to change and to facilitate the free exchange of information and ideas. A boundaryless organization is characterized by the absence of hierarchy, empowerment of team members, the use of information technology, spontaneous sharing of knowledge, and acceptance of change.

Virtual Teams

A virtual team or virtual organization is one specific form of a boundaryless organization.

A virtual team is a group of people who work interdependently with a shared purpose across space, time, and organization boundaries using technology. What sets virtual teams apart is that they routinely cross boundaries. What makes virtual teams historically new is the awesome array of interactive technologies at their disposal.

Organizational Design refers to the decisions made by management, and the structures created by management, to carry out the organization’s mission and objectives. Organizations vary widely not only in terms of size, but also in terms of the problems and opportunities they face. In some cases, traditional organizational structures may work best; in others, a network structure may work better. Organizations need to be able to change their structure as necessary, to best meet the demands of their current situation.

Trends in Organiza!onal Design Structures

(1) Shorter Chain of Command: The chain of command is the vertical link from your position to the highest level of authority. The trend is toward flatter organizations with fewer levels of management.

highest level of authority. The trend is toward flatter organizations with fewer levels of management.

(2) Increased Delegation and Empowerment: Progressive managers entrust work to their employees along with the authority to take necessary actions. When employees receive responsibility and authority, they are also required to be accountable for the work, which means they must answer for the performance results. Authority is the right to do what is necessary to complete a task. It can include the right to spend money, direct the work of others, and use company resources. Managers must understand that if they really want to empower employees, they must give these employees the authority needed to meet the responsibility.

3) Decentralization: In a decentralized structure, decisions are made throughout all organizational levels, not only at the top level. Information technology allows top levels of management to keep current on what is happening, and therefore maintain control, while also increasing decentralization.

(4) Organic Structure instead of Mechanistic Structure: The term “organic structure” is used to describe an organizational structure that is designed to promote flexibility so that employees can initiate change and adapt quickly to changing conditions. In an organic structure, it is common for all of the employees to be able to handle most, if not all, of the tasks. Organic structures contrast with mechanistic structures. Employees in a mechanistic structure behave in predictable, accountable ways. They have assigned duties that they must perform and are not permitted to take on additional duties unless they are told so by management.

__MACOSX/module 5/._Lesson 2: Trends in Organizational Structures: Business Leadership: Management Fundamentals.pdf

module 5/Lesson 3: The Changing Nature of Work (2 Part Lesson): Business Leadership: Management Fundamentals.pdf

Lesson 3: The Changing Nature of Work (2

Part Lesson)

Learning Golas: In this lesson, w will study the quality of the relationship between the individual and his/her employer.

Psychological Contract

The psychological contract is the set of unwritten expectations concerning the relationship between an employee and an employer. The psychological contract addresses factors that are not defined in a written contract of employment such as levels of employee commitment, productivity, quality of working life, job satisfaction, attitudes to flexible working, and the provision and take-up of suitable training. Expectations of both employer and employee can change, so the psychological contract must be re-evaluated at intervals to minimize misunderstandings.

Like all contracts, a healthy psychological contract is a two-way street. The individual makes positive contributions to the organization, and in return, the organization acknowledges those contributions in constructive and valuable ways. Workplace morale and performance suffers when the psychological contract is broken or unbalanced.

Quality of Work Life

Most people spend a large portion of their lives at work, and therefore their experience at work has a very significant impact on the overall quality of their lives. Quality of Work Life or QWL is a term used to describe the overall quality of an individual’s experience in the workplace.

Alterna!ve Job Design Approaches

The Changing Nature of Work Alternative Work Arrangements

Alterna!ve Job Design Approaches

Job design is the process of assigning specific work tasks to individuals and groups. Good job design will result in jobs that provide both satisfaction and performance. It will also provide a good fit between the individual worker and the task requirements. The manager must take into consideration the job scope, job depth, and task specialization when designing the job.

Job scope is the number for a variety of tasks. Job depth is the extent of planning, controlling, and responsibility. Task specialization is how narrowly the job is defined.

(1) Job simplification means standardizing work procedures and assigning people to clearly defined and highly specialized tasks. Most jobs on an assembly line have this type of job design. These jobs are very repetitive and relatively unchallenging. Some people may prefer this type of job as long as the work environment is comfortable and stress is low. Other people will become too bored with this type of job. As a result, these jobs are susceptible to high turnover and absenteeism.

(2) Job rotation is sometimes used as a solution to the boredom that results from job simplification. The job scope is increased by periodically shifting workers between jobs that involve different task assignments. This rotation method works best in larger organizations where employees may be “cross-trained” to do jobs other than their own. Job rotation provides an organization with much more flexibility and employees with much more variety.

(3) Job enlargement is increasing the job scope by combining two or more tasks previously assigned to separate employees. This type of approach to work usually means including the tasks immediately before or after an existing task.

(4) Job enrichment means increasing job depth to create more opportunities for job satisfaction. Job enrichment usually involves adding planned and controlling responsibilities normally performed by the manager or giving the individual more input into his/her own job.

__MACOSX/module 5/._Lesson 3: The Changing Nature of Work (2 Part Lesson): Business Leadership: Management Fundamentals.pdf

module 5/Lesson 4: A Quality Workforce: Business Leadership: Management Fundamentals.pdf

Lesson 4: A Quality Workforce Learning Goals: In this lesson, you will examine the relationship between an organization's objectives and the human resource process.

Human Resource Management

Within large organizations, you will usually find a human resources (HR) department. The function of the human resources department is to facilitate the process of attracting, developing, maintaining, and retaining a high-quality workforce for the organization. In other words, the human resources function is responsible for getting people, preparing them, helping to motivate them, and keeping them.

Strategic HR Planning Process

Like other functions within an organization, the human resources department must also create a strategic plan. The HR planning process usually has five steps: (1) Review organizational objectives and corresponding HR objectives. (2) Assess the current HR capacity. (3) Forecast HR requirements. (4) Conduct a gap analysis, i.e., compare what organization currently has with the forecasted requirements. (5) Develop HR strategies to support organizational strategies.

The five basics strategies used by Human Resources managers are:

1. Restructuring, 2. Training and development, 3. Recruitment, 4. Outsourcing, and

4. Outsourcing, and 5. Collaboration.

Canada's Top 100 Employers (h!p://www.canadastop100.com/na"onal/)

Each year, Mediacorp Canada Inc. prepares a list of the Top 100 employers in Canada. Businesses that meet certain minimum criteria are invited to apply for the annual competition. Employers must complete an extensive application process that includes a detailed review of their operations and HR practices.

In reviewing each application, the judges look at eight key areas: (1) Physical Workplace (2) Work Atmosphere and Social (3) Health, Financial, and Family Benefits (4) Vacation and Time Off (5) Employee Communications (6) Performance Management (7) Training and Skills Development (8) Community Involvement

__MACOSX/module 5/._Lesson 4: A Quality Workforce: Business Leadership: Management Fundamentals.pdf

module 5/Lesson 5: Performance Appraisals: Business Leadership: Management Fundamentals.pdf

Lesson 5: Performance Appraisals In this lesson, we will study the use of performance appraisals within an organization.

Performance Management System

Job performance is measured as the quantity and the quality of tasks an individual accomplishes. A performance management system establishes performance standards for employees, regularly assesses actual performance, and takes action to improve future performance.

A performance appraisal is a process in which an employee's work is discussed, reviewed, and appraised by his/her manager using an agreed upon and understood framework. Usually, the employee and manager both complete a performance appraisal form and then have a face-to-face meeting to discuss the employee’s performance. The focus of the appraisal process should always be on behaviors and outcomes, with the goal of improving motivation, growth, and performance of the employee. Performance appraisals are normally conducted once a year. However, good managers provide their employees with constant feedback throughout the year. Managers should never “save up” all of the negative things an employee does throughout the year and then “dump” on the employee at the performance appraisal meeting. Likewise, employees should not have to wait until performance appraisal time to receive praise and positive feedback from their manager.

Performance Appraisal Methods

Several methods of performance appraisals are used by organizations. Three methods are listed below starting with the simplest method and ending with the most complex.

(1) Graphic-Rating Scale This method consists of a checklist of the performance characteristics/objectives that are each rated with a numerical score. This method is quick and easy, but it does not always provide reliable or particularly useful data.

Example 1 1 = unacceptable 2 - 4 = poor 5 - 6 = satisfactory 7 - 8 = good 9 = very good 10 = excellent

Example 2 1 = never meets standard 2 = sometimes meets standard 3 = often meets standard 4 = always meets standard

Anecdotal comments are frequently combined with graphic-rating scales to provide more insight into the employee’s performance and plans.

(2) Behaviourally Anchored Rating Scale (BARS) This method describes actual behaviors for each level of performance. It is generally regarded as more reliable than a graphic rating scale, but it takes much more work to prepare an effective BARS. However, BARS may be useful not only for performance appraisals but also for training employees to master important tasks. To create and use BARS, the manager must:

a. Break the job down into its key performance tasks; b. Identify the range of possible behaviors that can be displayed while performing each task; c. Place behaviors on a scale ranging from unsatisfactory performance to outstanding performance and

describe examples of typical behavior for each rating point, and d. Assess employees using these scales.

(3) 360° Feedback A relatively new performance appraisal method is called 360° feedback. This method involves feedback

from a much wider group of people than just the employee’s supervisor. It includes feedback from managers, peers, subordinates, and even customers. This method can be very useful for assessing team performance and the performance of managers. Like many other recent developments in management practices, 360° feedback is often done with the use of technology to gather the data and analyze the

results.

__MACOSX/module 5/._Lesson 5: Performance Appraisals: Business Leadership: Management Fundamentals.pdf

module 5/Lesson 6: Management Careers: Business Leadership: Management Fundamentals.pdf

Lesson 6: Management Careers In Ontario, the Human Resources Professionals Association (HRPA) grants the Certified Human Resources Professional (CHRP) designation, the national standard for excellence in human resources management. The HRPA also provides its membership information, resources, events, professional development, and networking opportunities. The CHRP designation is often specified as a qualification necessary to get a management position in the human resources department of a large organization.

Management Careers

As mentioned at the beginning of this course, there are a variety of management careers in all types of organizations: businesses, non-profit organizations, schools, and government. Here are some common job titles for management positions.

Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operational Officer (COO) President Vice-president General manager Plant manager Regional manager Divisional manager Office manager Shift supervisor Department manager Foreperson Crew leader Store manager

This is not a comprehensive list but it does give you an idea of the breadth of positions that involve managerial tasks. Remember, a manager is a person who other employees rely on for guidance, direction, and support in their own jobs.

__MACOSX/module 5/._Lesson 6: Management Careers: Business Leadership: Management Fundamentals.pdf