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Management Final Notes.docx

17 Pages

Course Code
MANA 298

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06232013Management FinalChapter 8 Organization Structures and Design1 What is organizing as a management function2 What are traditional organization structures3 What are the newer types of organization structures4 How are organizational designs changing the workplaceWHAT IS ORGANIZING AS A MANAGEMENT FUNCTION1Organizing arranges people and resources to work toward a goal As one of the most basic components of management it involves dividing the labor and coordinating results to achieve a common purpose Organization structure is the system of tasks reporting relationships and communication linkages within an organization This can be visually seen with an organization chart By looking at an organization chart we learn the basics of an organizations formal structure The informal structure is the set of unofficial relationships among an organizations members Social network analysis is a great tool for understanding informal structures and the social relationships that are active in an organization No organization can be fully understood without gaining insight into the informal structure as well as the formal one Informal structures are key to the success of any organization especially during times of change or in unusual situations They provide quick spontaneous help which allows an organization to get things done At the same time they can carry inaccurate information are susceptible to rumors within an organization and divert work efforts from important objectives Traditional Organization Structures 2 Basic principle of organizing is departmentalization grouping together workers and jobs into work units Basically making sure people are specializing and experts in their specific job Departmentalization decisions have resulted in three major types of organizational structures functional divisional and matrix structuresFunctional structures Groups together people with similar skills who perform similar tasks Banks hospitals are two examples of types of organizations that follow this structure They work well with smaller organizations dealing with only one or a few products The key point is that members of a function work within their areas of expertise Advantages Efficient use of resources task assignment consistent with expertise and training highquality technical problem solving clear career paths within functions Disadvantages functional chimneys problem lack of communication across functional groups Viewpoints become too selfcentered and narrow When problems occur between functions they are too often referred to higher levels for resolution rather than being addressed by people at the same level Divisional Structures Groups together people working on the same product in the same area with similar customers or on the same processes They are common in complex organizations with diverse operations that extend across many products territories customers and work processesoProduct Structures People and jobs grouped together based on a specific product within an organization ie Heinz CEO decided that changing to a product structure will allow the organization to be more successful in the companys international structure oGeographical Structures Location of Activity Great for focusing on unique cultures and requirements of particular religions Each area is given their own responsibilities with regards to logistics sales and other business functions
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