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GMS. chap 8 notes.doc

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Department
Global Management
Course
GMS200
Professor
Ashley Scarlett
Semester
Winter

Description
Chapter 8: Organization Structures and Design ORGANIZATION AS A MANAGEMENT FUNCTION Organizing: arranges people and resources to work toward a goal What is Organization Structure: Organization structure: is a system of tasks, reporting relationships and communication linkages • Structure should: - allocate tasks through division of labour - provide for the coordination of performance results Formal Structures: Organization Chart: describes the arrangement of work positions within an org. • identifies various positions and job titles, lines of authority and comm. between them Formal structure: is the official structure of the org. Learn the basics of an org.'s formal structure: • Division of work • Supervisory relationships • Communication channels • Major subunits • Levels of management Informal Structures: Informal structure: is the set of unofficial relationships among an org.s members • shows who talks to who, regardless of titles and relationships Social Network Analysis: identifies the informal structures and their embedded social relationships that are active in an org. • draw with lines running from person to person according to the frequency and type of relationship maintained ADV: • during times of change • out‐of‐date formal structures may fail to provide the support people need to deal with new or unusual situations • allow people to make contacts with others who can help them get things done • sources of emotional support and friendship that satisfy important social needs DISADV. • susceptible to rumor • carry inaccurate info. • breed resistance to change • divert work efforts from important objectives • Economies of scale with efficient use of resources. T• Task assignments consistent with expertise and training. Departmentalization: is the process of grouping people and jobs into work units • In‐depth training and skill development within functions. 1 • Clear career paths within functions 3 types of org.al structures 1. Functional Structures: groups people together with similar skills who perform similar tasks ADV. DISADV. • difficulties in pinpointing responsibilities for things like cost containment, product or service quality, and innovation Functional Chimneys Problem: is a lack of communication and coordination across functions • sense of common purpose gets lost to self‐centered and narrow viewpoints • slows decision‐making • harm organizational performance 2. Divisional Structures Divisional Structures: groups together people working on the same products, in the same area, with similar customers or on the same processes Product Structures: groups people and jobs together focused on a single product or service Geographical Structures: groups people and jobs together performed in same location Customer Structures: groups people and jobs together that serve the same customer or clients Process Structures: Work Process: is a group of related tasks that collectively creates a valuable work product Process Structure: groups jobs and activities together that are part of the same processes ADV. • More flexibility in responding to environmental changes. • Improved coordination across functional departments. • Clear points of responsibility for product or service delivery. • Expertise focused on specific customers, products, and regions. • Greater ease in changing size by adding or closing down divisions. DISADV. • reduce economies of scale and increase costs through the duplication of resources and efforts across divisions • unhealthy rivalries as divisions compete for resources and top management attention, and emphasize division needs to the detriment of the goals of the org. as a whole 3. Matrix Structure: Matrix Structure: combines the functional and divisional approaches to emphasize project or program teams ADV. 2 • Better cooperation across functions Improved decision • • Increased flexibility in adding, removing, or changing operations to meet changing demands. • Better customer service • Better performance accountability through the program, product, or project managers. • Improved strategic management DISADV. • susceptible to power struggles, as functional supervisors and team leaders vie with one another to exercise authority • creates task confusion and conflicting work priorities • Team meetings takes lots of time • higher costs HORIZONTAL ORGANIZATION STRUCTURES Team Structures: Team Structures: uses permanent and temporary cross-functional teams to improve lateral relations Cross-Functional Teams: brings member
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