Organizational Management: Chapter 8

frees people to make decisions about how they work and recognizes their full potential
arranges people and resources to work towards a goal
*Organizing Structure*
a system of tasks, reporting relationships and communication linkages
*Organizational Chart*
describes the arrangement of work positions within an organization
division of labor
people and groups perform different jobs
*Formal Structure*
the official structure of the organization (every business has one)
informal structures
the set of unofficial relationships among an organizations members
social network analysis
identifies the informal structure and their embedded social relationships that are active in an organization
the process of grouping together people and jobs into work units
functional structures
groups with similar skills who perform similar tasks
advantages of functional structures
-economies of scale make efficient use of human resources
-functional experts are good at solving technical problems
-training within functions promotes skill development
-career paths are available within each function
functional chimneys/silos problem
a lack of communication and coordination across functions
divisional structures
groups together people working on the same product, in the same area, or with similar customers
product structures
groups together people and jobs working on a single product or service
geographic structures
brings together people and jobs performed in the same location
customer structure
groups together people and jobs that serve the same customers or clients
*Matrix Structure*
combines functional and divisional approaches to emphasize project or program teams
-make cross functional teams
-ex. for a shoe: shoe designer, operations, marketing team, finance
cross-functional team
brings together members from different functional departments
Advantages of Matrix structures
-performance accountability rests with program product or project managers
-better communication exists across functions
-teams solve problems at their levels
-top managers spend more time on strategy
team structures
uses permanent and temporary cross-functional teams to improve lateral relations
advantage of team structures
-team assignments improve communication, cooperation, and decision making
-team members get to know each other as persons and not just job titles
-team memberships boost morale and increase enthusiasm and task involvement
network structure
uses IT to link with networks of outside suppliers and service contractors
advantages of network structure
-lower cost due to fewer full-time employees
-better access to expertise through specialized alliance partners and contractors
-easy to grow or shrink with market conditions
virtual organization
uses information technologies to operate as a shifting network of alliances
organizational data
the process of configuring organizations to meet environmental challenges
span of control
the number of people directly reporting to a manager
top management keeps the power to make most decisions
top management allows lower levels to help make many decisions
the process of entrusting work to others
steps to delegating work
1. assign responsibility
2. grant authority
3. create accountability
emphasizes formal authority, rules, order, fairness, and efficiency
merchanistic designs
bureaucratic, using a centralized and vertical structure
organic designs
adaptive, using a decentralized and horizontal structure
compressed workweek
allows a worker to complete a fulltime job in less than 5 days
flexible working hours (aka flex time)
give employees some choice in daily work hours
involves using IT to work at home or outside the office
co-working center
a place where telecommuters go to share an office environment outside of the home and join the company of others
job sharing
splits one job between two people