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Chapter 10

Chapter 10

12 Pages
75 Views

Department
Global Management Studies
Course Code
GMS 200
Professor
Sui Sui

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Chapter 10 - Organizing
Study Question 1: What is organizing as a management function?
Organizing and organization structure
oOrganizing
The process of arranging people and other resources to work together
to accomplish a goal.
oOrganization structure
The 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
oThe structure of the organization in its official state.
oAn organization chart is a diagram describing reporting relationships and
the formal arrangement of work positions within an organization.
oAn organization chart identifies the following aspects of formal structure:
The division of work.
Supervisory relationships.
Communication channels.
Major subunits.
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Levels of management.
Informal structures
oA shadow organization made up of the unofficial, but often critical, working
relationships between organization members.
oPotential advantages of informal structures:
Helping people accomplish their work.
Overcoming limits of formal structure.
Gaining access to interpersonal networks.
Informal learning.
oPotential disadvantages of informal structures:
May work against best interests of entire organization.
Susceptibility to rumor.
May carry inaccurate information.
May breed resistance to change.
Diversion of work efforts from important objectives.
Feeling of alienation by outsiders.
Study Question 2: What are the major types of organization structures?
Functional structures
oPeople 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
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Potential advantages of functional structures:
oEconomies of scale.
oTask assignments consistent with expertise and training.
oHigh-quality technical problem solving,
oIn-depth training and skill development.
oClear career paths within functions.
Potential disadvantages of functional structures:
oDifficulties in pinpointing responsibilities.
oFunctional chimneys problem.
oSense of cooperation and common purpose break down.
oNarrow view of performance objectives.
oExcessive upward referral of decisions.
Divisional structures
oGroup 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
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Description
Chapter 10 - Organizing Study Question 1: What is organizing as a management function? Organizing and organization structure o Organizing The process of arranging people and other resources to work together to accomplish a goal. o Organization structure The 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 o The structure of the organization in its official state. o An organization chart is a diagram describing reporting relationships and the formal arrangement of work positions within an organization. o An organization chart identifies the following aspects of formal structure: The division of work. Supervisory relationships. Communication channels. Major subunits. www.notesolution.com Levels of management. Informal structures o A shadow organization made up of the unofficial, but often critical, working relationships between organization members. o Potential advantages of informal structures: Helping people accomplish their work. Overcoming limits of formal structure. Gaining access to interpersonal networks. Informal learning. o Potential disadvantages of informal structures: May work against best interests of entire organization. Susceptibility to rumor. May carry inaccurate information. May breed resistance to change. Diversion of work efforts from important objectives. Feeling of alienation by outsiders. Study Question 2: What are the major types of organization structures? Functional structures o People with similar skills and performing similar tasks are grouped together into formal work units. o Members work in their functional areas of expertise. o Are not limited to businesses. o Work well for small organizations producing few products or services. Figure 10.2 Functional structures in a business, branch bank, and community hospital www.notesolution.com
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