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Grouping jobs on the basis of territory or geography
Grouping jobs on the basis of product or customer flow
Grouping jobs by type of customer and needs
Functional Departmentalization Plant Manager Manager, Manufacturing Manager, Human Resources Manager, Accounting Manager, Engineering Manager, Purchasing + Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations + Coordination within functional area + In-depth specialization – Poor communication across functional areas – Limited view of organizational goals
Geographical Departmentalization Vice President for Sales Sales Director, Central Region Sales Director, Southern Region Sales Director, Western Region Sales Director, Eastern Region + More effective and efficient handling of specific regional issues that arise + Serve needs of unique geographic markets better – Duplication of functions – Can feel isolated from other organizational areas
Product Departmentalization + Allows specialization in particular products and services + Managers can become experts in their industry + Closer to customers – Duplication of functions – Limited view of organizational goals Source: Bombardier Annual Report. CEO . Truck Division Car Division Bus Division
Process Departmentalization + More efficient flow of work activities – Can only be used with certain types of products Plant Manager Spinning Dyeing Weaving Fininshing
Customer Departmentalization + Customers’ needs and problems can be met by specialists – Duplication of functions – Limited view of organizational goals Director of Sales Manager, Wholesale Accounts Manager, Retail Accounts Manager, Government Accounts
Limited information network (mostly downward communication)
Low decision participation by lower-level employees
Highly flexible and adaptable structure
Fluid team-based structure
Little direct supervision
Minimal formal rules
Open communication network
Mechanistic Versus Organic Organization Mechanistic • High Specialization • Rigid Departmentalization • Clear Chain of Command • Narrow Spans of Control • Centralization • High Formalization Organic • Cross-Functional Teams • Cross-Hierarchical Teams • Free Flow of Information • Wide Spans of Control • Decentralization • Low Formalization
The entire organization is made up of work groups or self-managed teams of empowered employees
Specialists for different functional departments are assigned to work on projects led by project managers
Matrix participants have two managers
Employees work continuously on projects, moving on to another project as each project is completed
A Matrix Organization in an Aerospace Firm Design Engineering Manufacturing Contract Administration Purchasing Accounting Human Resources (HR) Design Group Alpha Project Manufacturing Group Contract Group Purchasing Group Accounting Group HR Group Design Group Beta Project Manufacturing Group Contract Group Purchasing Group Accounting Group HR Group Design Group Gamma Project Manufacturing Group Contract Group Purchasing Group Accounting Group HR Group Design Group Omega Project Manufacturing Group Contract Group Purchasing Group Accounting Group HR Group
The degree to which members of various departments work together in a unified manner.
A B Power The ability to exert influence; that is, the ability to change the attitudes or behavior of individuals or groups . A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes. Dependency B’s relationship to A when A possesses something that B requires.
Coercive Power A power base dependent on fear. Reward Power Compliance achieved based on the ability to distribute rewards that others view as valuable Legitimate Power The power a person receives as a result of his or her position in the formal hierarchy of an organization.
Expert Power Influence based on special skills or knowledge. Referent Power Influence based on possession by an individual of desirable resources or personal traits.
External factors include the level of education, the prevailing attitudes in society (such as the attitude toward work), the many laws and regulations that directly affect staffing, the economic conditions, and the supply of and demand for managers outside the enterprise
Internal factors that affect staffing include, for example, organizational goals, tasks, technology, organization structure, the kinds of people employed by the enterprise, the demand for and the supply of managers within the enterprise, the reward system, and various kinds of policies
Environment Environment Decruitment Recruitment Human Resource Planning Selection Orientation Training Performance Management Career Development Compensation and Benefits Identification and Selection of Competent Employees Adapted and competent employees with up-to-date skills and knowledge Competent and high-performing employees who are capable of sustaining high performance over the long term