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Chapter Eight.docx

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Global Management Studies
GMS 200
Jian Guan

Chapter Eight Organizing Structures and Design GMS Notes Organizingthe process of arranging people and other resources to work together to accomplish a goal Organization structurea system of tasks reporting relationships and communication linkages Organization chartdescribes the arrangement of work positions within an organization Formal structurethe official structure of the organization By reading an organization chart you can learn the basics of an organizations formal structure including Division of workpositions and titles show work responsibilities Supervisory Relationshipslines show who reports to whom Communication Channelslines show formal communication flows Major subunitspositions reporting to a common manager Levels of managementvertical layers of management are shown Informal structurethe set of unofficial relationships among an organizations members Social network analysisidentifies the informal structures and their embedded social relationships that are active in an organization Traditional Organization Structures Departmentalizationthe process of grouping people and jobs into work units Functional structuresgroups together people with similar skills who perform similar tasks Advantages of Functional Structures Disadvantages of Functional Structureseconomies of scale with efficient use of resourcesdifficulties in pinpointing responsibilities fortask assignments consistent with expertise and things like cost containment product or service training quality and innovationhigh quality technical problem solvingFunctional chimney problemsa lack ofin depth training and skill development within communication and coordination across functions functionssense of common purpose gets lost to selfclear career paths within functions centred and narrow viewpointsDivisional Structures Divisional structuregroups together people working on the same product in the same area with similar customers or on the same processes Product structuregroups together people and jobs focused on a single product or service Geographical structuregroups together people and jobs performed in the same location Customer structuregroups together people and jobs that serve the same customers and clients Work processgroup of related tasks that collectively creates a valuable work product Process structuregroups jobs and activities that are part of the same processes
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