organization structure chapter 08 mcgraw-hill/irwin copyright © 2011 by the mcgraw-hill companies,...
TRANSCRIPT
![Page 1: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/1.jpg)
Organization Organization Structure Structure
Chapter 08Chapter 08
McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
![Page 2: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/2.jpg)
Learning ObjectivesLearning Objectives
LO 1 Explain how differentiation and integration influence an organization’s structure
LO 2 Summarize how authority operatesLO 3 Define the roles of the board of directors and the
chief executive officerLO 4 Discuss how span of control affects structure and
managerial effectivenessLO 5 Explain how to delegate effectively
8-2
![Page 3: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/3.jpg)
Learning Objectives (cont.)Learning Objectives (cont.)
LO 6 Distinguish between centralized and decentralized organizations
LO 7 Summarize the ways organizations can be structured
LO 8 Identify the unique challenges of the matrix organization
LO 9 Describe important integrative mechanisms
8-3
![Page 4: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/4.jpg)
Fundamentals of OrganizingFundamentals of Organizing
Organization chart The reporting
structure and division of labor in an organization
8-4
![Page 5: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/5.jpg)
Conventional Organization ChartConventional Organization Chart
8-5Figure 8.1
![Page 6: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/6.jpg)
Fundamentals of OrganizingFundamentals of Organizing
Differentiation the organization is
composed of many different units that work on different kinds of tasks, using different skills and work methods.
Integration these differentiated
units are put back together so that work is coordinated into an overall product
8-6
![Page 7: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/7.jpg)
Differentiation Differentiation
Division of labor The assignment of
different tasks to different people or groups
Specialization A process in which
different individuals and units perform different tasks
8-7
![Page 8: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/8.jpg)
Integration Integration
Coordination The procedures that link the various parts of an
organization for the purpose of achieving the organization’s overall mission
8-8
![Page 9: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/9.jpg)
Authority in OrganizationsAuthority in Organizations
Authority The legitimate right
to make decisions and to tell other people what to do.
8-9
![Page 10: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/10.jpg)
Authority in OrganizationsAuthority in Organizations
8-10
![Page 11: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/11.jpg)
Hierarchical LevelsHierarchical Levels
Hierarchy The authority levels of the organizational pyramid
Corporate governance The role of a corporation’s executive staff and
board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders
8-11
![Page 12: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/12.jpg)
Span of ControlSpan of Control
Span of control The number of subordinates who report directly
to an executive or supervisor Tall, flat
8-12
![Page 13: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/13.jpg)
QuestionQuestion
What is the assignment of new or additional responsibilities to a subordinate?
A.Subordination B.Delegation C.Designation D.Allocation
8-13
![Page 14: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/14.jpg)
Delegation Delegation
Delegation The assignment of new or additional
responsibilities to a subordinate Responsibility, Authority, and Accountability
8-14
![Page 15: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/15.jpg)
DelegationDelegation
Responsibility The assignment of a
task that an employee is supposed to carry out
Accountability The expectation that
employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance
8-15
![Page 16: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/16.jpg)
Advantages of delegationAdvantages of delegation
Leverages managers’ energy and talent Allows managers to accomplish more than they
could on their own Helps develop effective subordinates. Promotes a sense of being an important,
contributing member of the organization, so employees tend to feel a stronger commitment, perform their tasks better, and engage in more innovation
8-16
![Page 17: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/17.jpg)
Steps in Effective DelegationSteps in Effective Delegation
8-17
Figure 8.2
![Page 18: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/18.jpg)
DecentralizationDecentralization
Centralized organization An organization in
which high-level executives make most decisions and pass them down to lower levels for implementation
Decentralized organization An organization in
which lower-level managers make important decisions
8-18
![Page 19: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/19.jpg)
The Horizontal StructureThe Horizontal Structure
Line departments Units that deal
directly with the organization’s primary goods and services
Staff departments Units that support
line departments
8-19
![Page 20: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/20.jpg)
The Functional OrganizationThe Functional Organization
Functional organization Departmentalization
around specialized activities such as production, marketing, and human resources.
8-20
![Page 21: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/21.jpg)
The Functional OrganizationThe Functional Organization
8-21Figure 8.3
![Page 22: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/22.jpg)
Advantages of Functional OrganizationsAdvantages of Functional Organizations
1. Economies of scale can be realized2. Effective monitoring of the environment3. Performance standards better maintained4. Greater opportunity for specialized training and skill
development5. Technical specialists are relatively free of
administrative work6. Decision making and lines of communication are
simple and clearly understood
8-22
![Page 23: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/23.jpg)
The Divisional OrganizationThe Divisional Organization
Divisional organization Departmentalization that groups units around
products, customers, or geographic regions.
8-23
![Page 24: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/24.jpg)
Advantages of Divisional OrganizationsAdvantages of Divisional Organizations
1. Information needs are managed more easily2. People have a full-time commitment to a
particular product line3. Task responsibilities are clear4. People receive broader training
8-24
![Page 25: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/25.jpg)
The Divisional OrganizationThe Divisional Organization
8-25
Figure 8.4
![Page 26: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/26.jpg)
The Matrix OrganizationThe Matrix Organization
Matrix organization An organization composed of dual reporting
relationships in which some managers report to two superiors—a functional manager and a divisional manager
8-26
![Page 27: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/27.jpg)
Matrix Organizational StructureMatrix Organizational Structure
8-27Figure 8.5
![Page 28: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/28.jpg)
Advantages of a Matrix DesignAdvantages of a Matrix Design
8-28Table 8.2
![Page 29: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/29.jpg)
Disadvantages of a Matrix DesignDisadvantages of a Matrix Design
8-29Table 8.3
![Page 30: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/30.jpg)
The Network OrganizationThe Network Organization
Network organization A collection of independent, mostly single-
function firms that collaborate on a good or service
8-30
![Page 31: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/31.jpg)
The Network OrganizationThe Network Organization
8-31Figure 8.7
![Page 32: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/32.jpg)
The Network OrganizationThe Network Organization
Dynamic network Temporary
arrangements among partners that can be assembled and reassembled to adapt to the environment
Broker A person who
assembles and coordinates participants in a network
8-32
![Page 33: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/33.jpg)
QuestionQuestion
___________ is establishing common routines and procedures that apply uniformly to everyone.
A. Coordination by standardizationB. Coordination by planC. Coordination by mutual adjustmentD.Coordination by service
8-33
![Page 34: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/34.jpg)
Coordination by StandardizationCoordination by Standardization
Standardization Establishing common
routines and procedures that apply uniformly to everyone.
Formalization The presence of rules
and regulations governing how people in the organization interact.
8-34
![Page 35: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/35.jpg)
Coordination by PlanCoordination by Plan
Coordination by plan Interdependent units are required to meet
deadlines and objectives that contribute to a common goal
8-35
![Page 36: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/36.jpg)
Coordination by Mutual AdjustmentCoordination by Mutual Adjustment
Coordination by mutual adjustment Units interact with
one another to make accommodations to achieve flexible coordination
8-36
![Page 37: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/37.jpg)
Reducing the Need for InformationReducing the Need for Information
Slack resources extra resources on
which organizations can rely in a pinch so that if they get caught off guard, they can still adjust
Creating self-contained tasks changing from a
functional organization to a product or project organization and giving each unit the resources it needs to perform its task
8-37
![Page 38: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/38.jpg)
Increasing Information-Processing Increasing Information-Processing CapabilityCapability
1. Direct contact among managers who share a problem2. Liaison roles to handle communication between two
departments3. Task forces to brought together temporarily to solve a
common problem4. Teams--permanent interdepartmental decision-making
groups5. Product, program, or project managers6. Matrix organizations
8-38
![Page 39: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/39.jpg)
Managing High Information-Managing High Information-Processing DemandsProcessing Demands
8-39Figure 8.8
![Page 40: Organization Structure Chapter 08 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved](https://reader036.vdocuments.mx/reader036/viewer/2022081513/56649e4b5503460f94b3f47b/html5/thumbnails/40.jpg)
Destination CEO: Royal Phillips ElectronicsDestination CEO: Royal Phillips Electronics
Do you think Philips uses a centralized or decentralized organization? Why?
In which type of organizational design would you prefer to work? Why?
8-40