MGT 3640 Chapter Notes - Chapter 7: Work Hard, Play Hard, Machismo, Stereotype

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Published on 18 Apr 2013
School
UofL
Department
Management
Course
MGT 3640
Professor
Chapter 7: Culture and Corporate Structures
April-17-13
9:10 PM
Organizational Structures
Organizational structure describes the way an institution is organized to carry out its objectives
and pursue its projects.
o Allows relations within the organization to be formalized by describing tasks, jobs, positions
of personnel, as well as limits and responsibilities of work units.
o Indicates the kind of hierarchy within the organization
Levels of authority and power
Formal lines of communication
Influences on organizational structure:
o Size
Small companies are flexible and can engage the whole staff in a rage of activities.
o Business environment
Structure of a large-scale organization will need to be more decentralized if it sells its
products in many markets.
o Internal and external influences
Internal requirements such as technology, types of activities, and strategy
External forces such as economic conditions, host governments, product-market
characteristics
Multinational corporations must take into account:
o Physical distance between headquarters and subsidiaries
o Mutual relations
o Legislation of countries where subsidiaries operate
o Need for co-ordination and integration is greater than in domestic organizations
Forms of Organizational Structure
3 basic types of structures:
1. Traditional hierarchal
i. Staff is divided according to function, product, service, or location
2. Several lines of reporting
i. Structure takes form of a project team
ii. Matrix structure
3. Network structure
i. Facilitates partnerships between organizations
5 organizational structures::
1. Geographic structures
Employees are grouped according to region
At the head of each division, there is a senior-level executive who shares responsibility
for the area with the HR manager.
Headquarters maintains control of 'strategic planning' and operations.
2. Functional structure
Responsibilities are arranges according to functional areas: marketing, finance, R&D,
etc
A the head of each division, a senior manager reports directly to CEO.
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Document Summary

Indicates the kind of hierarchy within the organization. Small companies are flexible and can engage the whole staff in a rage of activities: business environment. Structure of a large-scale organization will need to be more decentralized if it sells its products in many markets. Internal requirements such as technology, types of activities, and strategy. External forces such as economic conditions, host governments, product-market characteristics. Multinational corporations must take into account: physical distance between headquarters and subsidiaries, mutual relations, legislation of countries where subsidiaries operate, need for co-ordination and integration is greater than in domestic organizations. 3 basic types of structures: traditional hierarchal. Staff is divided according to function, product, service, or location: several lines of reporting. Structure takes form of a project team: matrix structure, network structure. At the head of each division, there is a senior-level executive who shares responsibility for the area with the hr manager. Headquarters maintains control of "strategic planning" and operations: functional structure.

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