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Lecture

Week 12 - Organizing

8 Pages
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Department
Global Management Studies
Course Code
GMS 200
Professor
Sui Sui

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Monday, April 4, 2011
GMS 200 WEEK 12
Organizing
Study Questions
1.What is organizing as a management function?
2.What are the major types of organization structures?
3.What are the new developments in organization structures?
4.What organizing trends are changing the workplace?
Study Question 1
Organizing and organization structure
Organizing: process of arranging people and other resources to work together to accomplish a goal
Organization Structure: system of tasks, workflows, reporting relationships, and communication
channels that link together diverse individuals and groups
Figure 10.1: Organizing viewed in Relationship with the other Management Functions
Formal Structures: structure of the organization in its official state
Organization Chart: shows the hierarchy of the organization
What does an organization chart identify?
Informal Structures: shadow organization made up of the unofficial, but often critical, working
relationships between organization members
What are the potential advantages and disadvantages of informal structures?
oInformal learning that takes place as people interact informally through the workday
o
May carry inaccurate information
May breed resistance to change
Continental United (Wall Street Journal)
Continental Airlines and United Airlines plan to merge operations
While the business deal has yet to receive approval form the Justice Department and the Federal
Aviation Administration, the two entities are already making plans for the transition
www.notesolution.com
This includes developing interim structures and leadership to govern the transition process
Study Question 2
Functional Structures: people with similar skills and performing similar tasks are grouped
together into formal work units
oMembers work in their functional areas of expertise
oAre not limited to businesses
oWork well for small organizations producing few products or services
Figure 10.2: Functional Structures in a Business, Branch Bank, and Community Hospital
What are the potential advantages and disadvantages of functional structures?
oTask assignments consistent with expertise and training
oHigh-quality technical problem solving
o
oDifficulties in pinpointing responsibilities
oNarrow view of performance objectives
Divisional Structures: group together people who work on the same product or process, serve
similar customers, and/or are located in the same area or geographical region
oCommon in complex organizations
oAvoid problems associated with functional structures
Figure 10.3: Divisional Structures based on Product, Geography, Customer, and Process
What are the potential advantages and disadvantages of divisional structures?
oMore flexibility in responding to environmental changes
oImproved coordination
oClear points of responsibility
oDuplication of resources and efforts across divisions
oCompetition and poor coordination across divisions
oEmphasis on divisional goals at expensive of organizational goals
Types of divisional structures and how they group job and activities:
oProduct Structures: focus on a single product or service
www.notesolution.com
oGeographical Structures: focus on the same location or geographical region
oCustomer Structures: focus on the same customers or clients
oProcess Structures: focus on the same processes
Matrix Structure: combines functional and divisional structures to gain advantages and minimize
disadvantages of each
Used in:
oManufacturing
oService Industries
oProfessional Fields
oNon-Profit Sector
oMulti-National Corporation
Figure 10.4: Matrix Structure in a Small Multi-Project Business Firm
What are the potential advantages and disadvantages of matrix structure?
oBetter cooperation across functions
oImproved decision making
oIncreased flexibility in restructuring
oTwo-boss system is susceptible to power struggles
oTwo-boss system can create task confusion and conflict in work priorities
oTeam meetings are time consuming
Study Question 3
Guidelines for horizontal structures:
oFocus the organization around processes, not functions
oPut people in charge of core processes
oDecrease hierarchy and increase the use of teams
oEmpower people to make decisions critical to performance
oUtilize information technology
oEmphasize multi-skilling and multiple competencies
oTeach people how to work in partnership with others
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Monday, April 4, 2011 GMS 200 WEEK 12 Organizing Study Questions 1. What is organizing as a management function? 2. What are the major types of organization structures? 3. What are the new developments in organization structures? 4. What organizing trends are changing the workplace? Study Question 1 Organizing and organization structure Organizing: process of arranging people and other resources to work together to accomplish a goal Organization Structure: system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups Figure 10.1: Organizing viewed in Relationship with the other Management Functions Formal Structures: structure of the organization in its official state Organization Chart: shows the hierarchy of the organization What does an organization chart identify? Informal Structures: shadow organization made up of the unofficial, but often critical, working relationships between organization members What are the potential advantages and disadvantages of informal structures? o Informal learning that takes place as people interact informally through the workday o May carry inaccurate information May breed resistance to change Continental United (Wall Street Journal) Continental Airlines and United Airlines plan to merge operations While the business deal has yet to receive approval form the Justice Department and the Federal Aviation Administration, the two entities are already making plans for the transition www.notesolution.com
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