assignment 216

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JOHN R. SCHERMERHORN, JR. MANAGEMENT 12th Edition

Chapter 11

Fundamentals of Organizing

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Planning Ahead — Chapter 11 Study Questions

What is organizing as a management function?

What are the traditional organization structures?

What are the types of horizontal organization structures?

How are organizational designs changing the workplace?

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Chapter 11 Learning Dashboard

Organizing as a Management Function

What is organization structure?

Formal structures

Informal structures

Traditional Organization Structures

Functional structures

Divisional structures

Matrix structures

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Chapter 11 Learning Dashboard

Horizontal Organization Structures

Team structures

Network structures

Boundaryless structures

Organizational Designs

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Takeaway 1: Organizing as a Management Function

Organizing as a management function

Organizing

Arranges people and resources to work together to accomplish a goal

Organization structure

The system of tasks, reporting relationships, and communication linkages

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Figure 11.1 Organizing viewed in relationship with the other management functions

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Takeaway 1: Organizing as a Management Function

An organization chart is a diagram describing reporting relationships and the formal arrangement of work positions within an organization. It includes:

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Takeaway 1: Organizing as a Management Function

Informal structures 
The set of unofficial relationships between organization members
Social network analysis
Identifies informal structures and social relationships in the organization

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Study Question 1: What is organizing as a management function?

Informal structures 
Potential advantages of informal structures:
Helping people accomplish their work
Overcoming limits of formal structure
Informal learning

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Takeaway 1: Organizing as a Management Function

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Takeaway 2: Traditional Organization Structures

Traditional organization structures

Departmentalization

Groups people with and jobs into work units or formal teams
These formal teams are linked to create three major types of traditional organizational structures

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Takeaway 2: Traditional Organization Structures

Functional structures

People with similar skills and performing similar tasks are grouped together into formal work units

Members work in their functional areas of expertise

Work well for small organizations producing few products or services

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Figure 11.2 Functional structures in a business, branch bank, and community hospital

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Takeaway 2: Traditional Organization Structures

Potential advantages of functional structures:

Economies of scale

Task assignments consistent with expertise and training

High-quality technical problem solving

In-depth training and skill development

Clear career paths within functions

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Takeaway 2: Traditional Organization Structures

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Takeaway 2: Traditional Organization Structures

Divisional structures

Group together people who work on the same product or process, serve similar customers, and/or are located in the same area or geographical region

Common in complex organizations

Avoid problems associated with functional structures

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Figure 11.3 Divisional structures based on product, geography, customer, and process

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Takeaway 2: Traditional Organization Structures

Potential advantages of divisional structures:

More flexibility in responding to environmental changes

Improved coordination

Clear points of responsibility

Expertise focused on specific customers, products, and regions

Greater ease in restructuring

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Takeaway 2: Traditional Organization Structures

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Takeaway 2: Traditional Organization Structures

Matrix structure

Combines functional and divisional structures to gain advantages and minimize disadvantages of each

Used in:

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Figure 11.4 Matrix structure in a small, multi-project business firm

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Takeaway 2: Traditional Organization Structures

Potential advantages of matrix structures:

Better cooperation across functions

Improved decision making

Increased flexibility in restructuring

Better customer service

Better performance accountability

Improved strategic management

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Takeaway 2: Traditional Organization Structures

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Takeaway 3: Horizontal Organization Structures

Team structures

Extensively use permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks.

Often use cross-functional teams composed of members from different functional departments

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Figure 11.5 How a team structure uses cross-functional teams for improved lateral relations

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Takeaway 3: Horizontal Organization Structures

Potential advantages of team structures:

Eliminates difficulties with communication and decision making

Eliminates barriers between operating departments

Improved confidence

Greater sense of involvement and identification

Increased interest for work

Improved quality and speed of decision making

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Takeaway 3: Horizontal Organization Structures

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Takeaway 3: Horizontal Organization Structures

Network structures

Uses information technologies to link with networks of outside suppliers and service contractors
Own only core components and use strategic
alliances or outsourcing to provide other components

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Takeaway 3: Horizontal Organization Structures

Potential advantages of network structures:

Firms can operate with fewer full-time employees and less complex internal systems

Reduced overhead costs and increased operating efficiency

Permits operations across great distances

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Takeaway 3: Horizontal Organization Structures

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Takeaway 4: Organizational Designs

Organizational design

Process of creating structures that accomplish mission and objectives

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Takeaway 4: Organizational Designs

Decentralization with centralization