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Lecture 8

GMS 200 Lecture Notes - Lecture 8: Departmentalization

Global Management Studies
Course Code
GMS 200
Shavin Malhotra

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GMS Chapter 8
Organization Structure - A system of tasks, reporting relationships and communication linkages
Organization Chart - Describes the arrangement of work positions within an organization
Formal Structure - The official structure of the organization
Informal Structure - Set of unofficial relationships among members
Social Network Analysis - Identifies informal structures and their embedded social relationships that are active in the organization
Departmentalization - Process of grouping people and jobs into work units
Types of Structures
- Functional Structure - Groups together people with similar skills who perform similar tasks
Functional Chimneys Problem - Lack of communication and coordination and coordination across functions
- Divisional Structure - Groups people working on the same product, in the same area, on the same processes
- Product Structure - Groups people and jobs focused on a single product or service
- Geographical Structure - Groups people and jobs performed in the same location
- Customer Structure - Groups people and jobs that serve the same customers or clients
- Work Structure - Group of related tasks that creates a valuable work product
- Process Structure - Groups jobs and activities that are part of the same process
- Matrix Structure - Combines Functional and Divisional approaches to emphasize projects or program teams
- Team Structure - Uses cross-functional teams to improve lateral relations
Cross-Function Team - Brings members together from different functional departments
Project Teams - Are convened for a particular task/project and disband once completed
Boundaryless Organization - Eliminates internal boundaries among subsystems and external boundaries with the environment
Virtual Organization - Uses IT and the Internet to engage a shifting network of strategic alliances
Organizational Design - Process of creating structures that accomplish mission/objectives
Bureaucracy - A form of organization based on logic, order and the legitimate use of formal authority
Mechanistic Design - Is centralized, with many rules and procedures, division of labour, narrow control and formal coordination
Organic Design - Is decentralized, few rules and procedures, open divisions of labour, wide control and personal coordination
Adaptive Organization - Operates with minimum bureaucratic features and encourages worker empowerment and teamwork
Subsystem - A smaller component within a larger organization (Ex. Sales division, R&D division, Manufacturing division)
Integration - The level of coordination achieved between subsystems in an organization
Chain of Command - Links people with successively higher levels of control
Span of Control - Number of subordinates directly reporting to a manager
Delegation - Process of distributing and entrusting work to others
Empowerment - Allows others to make decisions and exercise discretion in their work
Centralization - The concentration of authority for most decisions at the organizations' top level
Decentralization - The dispersion of authority to make decisions throughout all organization levels
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