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Chapter 8

GMS 200 Chapter Notes - Chapter 8: Strategic Management, Work Unit, Organizational Architecture

Global Management Studies
Course Code
GMS 200
Deborah De Lange

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Sunday, April 10, 2016
Chapter Eight
Organizing as a Management Function 8.1
What is organization structure?
-is a system of tasks reporting relationships, and communication
-it is the system of tasks,
workflows, reporting relationships,
and communication channels that
link together the work of diverse
individuals and groups
-any structure should both allocate
tasks through a division of labour
nd provide for the coordination of
performance results. a structure that does both of these things well is an important
asset, helping to implement an organizations strategy. improve performance
Formal Structures
-organization chart, describes the arrangement of work positions with an
-a typical organization chart identifies various positions and job titles, as well as the
lines of authority and communication between them
-formal structure, is the official structure of the organization
-by reading an organization chart you learn; division of work, supervisory relationships,
communication channels, major subunits, levels of management
Informal Structures
-informal structure, is the set of unofficial relationships among an organizations
-if drawn it would consist of who talks to and interacts regularly with whom
-social network analysis, identifies the informal structures and their embedded social
relationships that are in an organization

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Sunday, April 10, 2016
-informal structures and social networks are in many ways essential to organizational
success, especially during times of change
-informal structures are sources of emotional support and friendship that satisfy
important social needs
-disadvantages; susceptible to rumour, inaccurate info, breed resistance to change,
and even divert work efforts from important objectives and create “outsiders”
Traditional Vertical Organization Structures 8.2
-departmentalization, is the process of grouping people and jobs into work units
-these decisions have traditionally resulted in three major types of organizational
structures functional, divisional, and matrix structures
Functional Structures
-functional structures, groups together people with similar skills who perform similar
tasks, (departments)
-Advantages; not limited to businesses, economies of scale with efficient use of
resources, tasks assignments consistent with expertise and training, high-quality
technical problem solving, in-depth training and skill development within functions,
clear career paths within functions
-Disadvantages; pinpointing responsibilities, significant concern with functional
chimneys problem, is a lack of communication and coordination across functions
Divisional Structures
-divisional structure, groups together people working on the same product, in the
same area, with similar customers, or on the same processes
-project development, product teamwork program, are common in complex org.
-product structures, groups together people and jobs focused on a single product or
-geographical structures, group together people and jobs performed in the same
-customer structures, groups together people and job that serve the same
customers or clients
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