Textbook Notes (381,015)
CA (168,316)
Ryerson (11,724)
GMS (1,025)
GMS 200 (577)
Chapter 10

Chapter 10 - Organizing

5 Pages
129 Views

Department
Global Management Studies
Course Code
GMS 200
Professor
Shavin Malhotra

This preview shows pages 1-2. Sign up to view the full 5 pages of the document.
Chapter 10 Organizing
ORGANIZING AS A MANAGEMENT FUNCTION
Organizing: The process of arranging people and other resources to work together to accomplish a
goal.
Organizing is used to divide the work, arrange resources and coordinate activities.
What is organization structure?
Organization Structure: The system of tasks, workflows, reporting relationships, and
communication channels that link together diverse individuals and groups. As environments and
situations changes so must the structures.
Formal Structures
The structure of the organization in its official state.
An organization chart is a diagram describing reporting relationships and the formal arrangement
of work positions within an organization.
An organization chart identifies the following aspects of formal structure:
oThe division of work: positions and titles show work responsibilities
oSupervisory relationships: lines show who reports to who
oCommunication channels: lines show formal communication flows
oMajor subunits: positions reporting to a common manager are shown
oLevels of management: vertical layers of management are shown
Informal Structures
A shadow organization made up of the unofficial, but often critical, working relationships
between organization members.
If it was drawn it would show who talks to who, who has meetings with who, and who goes to coffee
with who
Potential advantages of informal structures:
oHelping people accomplish their work: during times of change because out-dated formal
structures fail to provide support to people, so they use an informal structure to fill the
void.
oOvercoming limits of formal structure: people are in personal contact of others, tasks are
not as strictly separated
oGaining access to interpersonal networks: social events, formal meetings
oInformal learning: interacting with people on a personal level
Potential disadvantages of informal structures:
oMay work against best interests of entire organization: outside formal authority system
oSusceptibility to rumor
oMay carry inaccurate information.
oMay breed resistance to change.
oDiversion of work efforts from important objectives.
oFeeling of alienation by outsiders: shadow cabinet those who have high power working in
an inclusive environment
TRADITIONAL ORGANIZATION STRUCTURES
Departmentalization: process of grouping together people and jobs into work units
www.notesolution.com
Functional Structures
People with similar skills and performing similar tasks are grouped together into formal work
units.
Members work in their functional areas of expertise: if each functional area works properly the
whole structure will work and vice versa.
Are not limited to businesses: banks and hospitals can use this structure as well
Work well for small organizations producing few products or services: the demand for change is
limited
Advantages:
oEconomies of scale: efficient use of resources
oTask assignments consistent with expertise and training
oHigh-quality technical problem solving
oIn-depth training and skill development
oClear career paths within functions
Disadvantages:
oDifficulties in pinpointing responsibilities: quality, timeliness, innovation
oFunctional chimneys problem: lack of communication, coordination and problem solving
oSense of cooperation and common purpose break down: function is very formal (everyone
does their own thing)
oNarrow view of performance objectives
oExcessive upward referral of decisions: if there is a problem its automatically reported to
the higher levels to solve the problem, instead of it being solved within that department.
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.
Common in complex organizations (more than one product, more than one region, several
processes, diverse customer availability)
Avoid problems associated with functional structures.
Advantages:
oMore flexibility in responding to environmental changes.
oImproved coordination.
oClear points of responsibility.
oExpertise focused on specific customers, products, and regions.
oGreater ease in restructuring.
Disadvantages:
oDuplication of resources and efforts across divisions: increase costs
oCompetition and poor coordination across divisions: everyone is competing for resources and
top-management attention
oEmphasis on divisional goals at expense of organizational goal
How Jobs and Activities are grouped
oProduct Structures : focus on a single product or service
oGeographical Structures: focus on the same location
oCustomer Structure: same customers and clients
oProcess Structures: same processes
Matrix Structure
Combines functional and divisional structures to gain advantages and minimize disadvantages of
each.
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Chapter 10 – Organizing ORGANIZING AS A MANAGEMENT FUNCTION Organizing: The process of arranging people and other resources to work together to accomplish a goal. Organizing is used to divide the work, arrange resources and coordinate activities. What is organization structure? Organization Structure: The system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups. As environments and situations changes so must the structures. Formal Structures The structure of the organization in its official state. An organization chart is a diagram describing reporting relationships and the formal arrangement of work positions within an organization. An organization chart identifies the following aspects of formal structure: o The division of work: positions and titles show work responsibilities o Supervisory relationships: lines show who reports to who o Communication channels: lines show formal communication flows o Major subunits: positions reporting to a common manager are shown o Levels of management: vertical layers of management are shown Informal Structures A “shadow” organization made up of the unofficial, but often critical, working relationships between organization members. If it was drawn it would show who talks to who, who has meetings with who, and who goes to coffee with who Potential advantages of informal structures: o Helping people accomplish their work: during times of change because out-dated formal structures fail to provide support to people, so they use an informal structure to fill the void. o Overcoming limits of formal structure: people are in personal contact of others, tasks are not as strictly separated o Gaining access to interpersonal networks: social events, formal meetings o Informal learning: interacting with people on a personal level Potential disadvantages of informal structures: o May work against best interests of entire organization: outside formal authority system o Susceptibility to rumor o May carry inaccurate information. o May breed resistance to change. o Diversion of work efforts from important objectives. o Feeling of alienation by outsiders: “shadow cabinet” those who have high power working in an inclusive environment TRADITIONAL ORGANIZATION STRUCTURES Departmentalization: process of grouping together people and jobs into work units www.notesolution.com Functional Structures People with similar skills and performing similar tasks are grouped together into formal work units. Members work in their functional areas of expertise: if each functional area works properly the whole structure will work and vice versa. Are not limited to businesses: banks and hospitals can use this structure as well Work well for small organizations producing few products or services: the demand for change is limited Advantages: o Economies of scale: efficient use of resources o Task assignments consistent with expertise and training o High-quality technical problem solving o In-depth training and skill development o Clear career paths within functions Disadvantages: o Difficulties in pinpointing responsibilities: quality, timeliness, innovation o Functional chimneys problem: lack of communication, coordination and problem solving o Sense of cooperation and common purpose break down: function is very formal (everyone does their own thing) o Narrow view of performance objectives o Excessive upward referral of decisions: if there is a problem it’s automatically reported to the higher levels to solve the problem, instead of it being solved within that department. 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. Common in complex organizations (more than one product, more than one region, several processes, diverse customer availability) Avoid problems associated with functional structures. Advantages: o More flexibility in responding to environmental changes. o Improved coordination. o Clear points of responsibility. o Expertise focused on specific customers, products, and regions. o Greater ease in restructuring. Disadvantages: o Duplication of resources and efforts across divisions: increase costs o Competition and poor coordination across divisions: everyone is competing for resources and top-management attention o Emphasis on divisional goals at expense of organizational goal How Jobs and Activities are grouped o Product Structures : focus on a single product or service o Geographical Structures: focus on the same location o Customer Structure: same customers and clients o Process Structures: same processes Matrix Structure Combines functional and divisional structures to gain advantages and minimize disadvantages of each. www.notesolution.com Used in manufacturing, service industries, professional fields, non-profit sector and multi-national corporations Advantages: o Better cooperation across functions. o Improved decision making. o Increased flexibility in restructuring. o Better customer service. o Better performance accountability. o Improved strategic management. Disadvantages o Two-boss system is susceptible to power struggles. o Two-boss system can create task confusion and conflict in work priorities. o Team meetings are time consuming. o Team may develop “groupitis.” o Increased costs due to adding team leers to structure. DIRECTIONS IN ORGANIZATION STRUCTURES Guidelines for Horizontal Structure o Focus the organization around processes, not functions. o Put people in charge of core processes. o Decrease hierarchy and increase the use of teams. o Empower people to make decisions critical to performance. o Utilize information technology. o Emphasize multiskilling and m
More Less
Unlock Document


Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit