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Lecture 9

GMS 200 Lecture 9: GMS 200- lecture 9

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Global Management Studies
GMS 200
Deborahde Lange

GMS 200- Lecture 9 Chapter 8: Organization Structures and Design Organizing as a Management Function  What is organization structure? o Organization structure is a system of tasks, reporting relationships, and communication linkages  Formal structures o organization chart describes the arrangement of work positions within an organization o Formal structure is the official structure of the organization o By reading organization chart, you can learn the basics of an organization’s formal structure, including:  Division of work: positions and titles show work responsibilities  Supervisory relationship: Lines show who reports to whom  Communication channels: lines show formal communication flows  Major subunits: Positions reporting to a common manager are shown  Levels of management: Vertical layers of management are shown  Information structures o Informal structure is the set of unofficial relationships among an organization’s members o Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization  Be sure you can o Define organizing as a management function  Organizing is the process of o Explain the difference between formal and informal structures  The formal structure, such as shown on an organization charts, describes how an organization is supposed to work  The informal structure of an organization consists of unofficial relationships that develop among members o Discuss the potential advantages and disadvantages of informal structures in organizations  Advantages  Helping people accomplish their work  Helping people overcome limits of the formal structure  Allowing people to gain access to interpersonal networks the satisfy needs for social interaction  Informal learning that takes place as people interact informally throughout workday  Disadvantages  Some informal behavior works against the best interests of the organization as a whole  Inaccurate information  Resistances to change  Diversion of work efforts from important objectives  Feelings of alienation by “outsiders”- persons who are left out of informal grouping Traditional Organization Structures  Functional structures o Fictional structure groups together people with similar skills who perform similar tasks  Divisional structures o Divisional structure groups together people working on the same product, in the same area, with similar customers, or on the same processes o Type  Product  Geographical  Customer  Process  Matrix structures  Be sure you can o Explain the differences between functional, and matrix structures  Fictional Structures  groups together people with similar skills who perform similar tasks  Matrix structures  Combines functional and divisional approaches to emphasize project or program teams o List advantages and disadvantages of a  functional structure  Advantages o Specialization consistent with professional training- clear career paths o Economies of scale with efficient use of resources o High-quality technical problem solving  Disadvantages o Functional chimneys problem- fiefdoms and turf battles o Narr
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