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GMS Chapter 8.docx

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Ryerson University
Global Management Studies
GMS 200
Tsogbadral Galaabaatar

GMS Chapter 8 Organization as a Management - Organizing: arranges people and resources to work toward a goal. - Organizing viewed in relationship with other management functions. o Organizing: to create structures  Divide up the work  Arrange resources  Coordinate activities o Controlling: to ensure results o Leading: to inspire effort o Planning: to set the direction  What is Organization Structure? - Organization Structure: is a system of tasks, reporting relationships, and communicating linkages.  Formal Structures - Formal structure: is the official structure of the organization. - An organization chart: describes the arrangement of work positions within an organization. - By reading an organization chart, you can learn the basics of an organization’s formal structure, including: o Division of work: Position and titles show work responsibilities. o Supervisory relationships: Lines show who reports to whom. o Communication channels: Lines show formal communication flows. o Major subunits: Positions reporting to a common manager are shown. o Levels of management: Vertical layers of management are shown.  Informal Structures - Informal structure: is the set of unofficial relationships among an organization’s members. - Social network analysis: Identifies the informal structures and their embedded social relationships that are active in an organization.  Traditional Organization Structures - decisions must be made regarding departmentalization - Departmentalization: is the process of grouping people and jobs into work.  Functional Structures - Functional structure: groups together people with similar skills who perform similar tasks. - Advantages of functional structures o Economies of scale with efficient use of resources. o Task assignment consistent with expertise and training. o High-quality technical problem solving. o In-depth training and skill development within functions. o Clear career paths within functions. - Disadvantages of Functional Structures o There are potential disadvantage of functional structures. Common problems difficulties in pinpointing responsibilities for things like cost containment, product or service quality, and innovation. A significant concern with the functional chimneys problem. o Functional chimneys problem: is a lack of communication and coordination across functions.  Divisional Structures - Divisional structure: groups together people working on the same product, in the same area, with similar customers, or on the same processes. - Product Structures: groups together people and jobs focused on a single product or service.  Geographical Structures: Geographic structure: groups together people and jobs performed in the same location. - Customer structures: Customer Structure: groups together people and jobs that serve the same customer or clients. - Work Process: is a group of related tasks that collectively creates a valuable work product. - Process structure: Groups jobs and activities that are part of the same process. - Advantages and Disadvantages of Divisional Structures: o More flexibility in responding to environmental changes. o Improved coordination across functional departments. o Clear points of responsibility for product or service delivery. o Expertise focused on specific customers, products, and religions. o Greater ease in changing sixe by adding or closing down divisions.  Matrix Structures - Matrix Structure: combines functional and divisional approaches to emphasize project or program teams. - Advantages of Matrix Structures: o Better cooperation across functions. o Improved decision- making problem solving takes place at the team level where the best information is available. o Increased flexibility in adding, removing, or changing operations to meet changing demands. o Better customer service; there is always a program, product, or project managers. o Improved strategic management; top managers are freed from lower- level problem solving to focus more time on strategic issues. - Disadvantages of Matrix Structures o The two boss system is susceptible to power struggle, as functional supervisors and team leaders vie with one another to exercise authority. o The two boss system can also be frustrating if it creates task confusion and conflicting work priorities. Horizontal Organization Structure  Team Structures - Team structure: uses permanent and temporary cross-functional teams to improve lateral relations. - Cross-functional team: brings together members from different functional departments. - Project Teams: are convened for a particular task or project and disband once it is completed. - Advantages of Team Structures: Team structures help eliminate difficulties with communication and decision making that result form functional chimney problem. Team assignment break down barriers between departments as people from different parts of an organization get to know on another. - Disadvantages of Team Structures: T
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