The document discusses different types of organizational structures and how they relate to the environment. It states that mechanistic structures with functional departments are more effective in stable environments, while organic structures with cross-functional teams are needed in dynamic environments that require flexibility and entrepreneurship. A matrix structure is presented as a hybrid that combines functional expertise and project-based teams to allow for efficient allocation of specialized skills across multiple divisions.
The document discusses various concepts related to organizational structure, including vertical and horizontal structure, formal and informal organization, centralization vs decentralization, and span of management. It provides definitions for key terms and compares different types of organizational structures. For example, it notes that vertical structure indicates lines of authority while horizontal structure refers to work specialization. A formal organization has a clear hierarchy and defined roles, while an informal organization emerges from social interactions.
The document discusses functional and product/market organization structures. It describes functional structure as organizing resources by specialized tasks and departments, with advantages being specialization and order but disadvantages including slow decision making. Product/market structure organizes by products and customer groups, allowing a focus on products but with potential for sub-optimization. The document provides details on each structure type, including their suitability for different situations, characteristics, and strengths and weaknesses.
The document discusses organizational structures used by companies. It describes four main types of structures - line, line and staff, matrix, and team. Key factors that influence a company's structure are its size, products/services, and stage of growth. As a company grows, its structure typically becomes more complex, shifting from a line to later stages involving more delegation and collaboration. The roles of the CEO and board of directors in leading the company are also outlined.
This document discusses key concepts related to organizational design including centralization, complexity, formalization, structure, and departmentalization. It defines these terms and discusses their advantages and disadvantages. The document also covers different types of organizational structures like mechanistic, organic, and matrix structures. Finally, it discusses factors that influence organizational design decisions like span of control and flexibility.
A presentation which discusses the basics of organizational structure. Created as a teaching resource for Organizational Behaviour unit of Pearson HND Business Management Program.
Bureaucracies are characterized by impersonality, where characteristics like race, gender, and ethnicity are irrelevant. Workers are chosen based on their ability to perform job tasks. Bureaucracies also employ specialized jobs and a formal division of labor. Organizational structure involves decisions about work specialization, departmentalization, chains of command, span of control, and the degree of centralization. These elements define how jobs are arranged and how authority flows within an organization.
This document discusses different types of organization structures including functional, divisional, matrix, and network structures. It provides details on key aspects of organizing like organization charts, authority, delegation, and coordination. Specific advantages are outlined for functional and divisional organizations with specialized activities and product lines respectively. Coordination through standardization and formalization is also covered.
This document discusses different organizational structures used by companies, including functional, divisional, and matrix structures. It provides examples of each type of structure and outlines their advantages and disadvantages. Specifically, it discusses:
- The functional structure groups employees by skills and expertise into departments like production, marketing, finance, etc. This allows for specialization but can lack coordination.
- The divisional structure separates a company by products, markets, or geography into independent divisions. This improves responsiveness but increases costs and overhead.
- The matrix structure combines functional and project management, with employees reporting to both a functional manager and a project manager. This facilitates collaboration but can be confusing with dual reporting lines.
The document also
The document discusses various concepts related to organizational structure, including vertical and horizontal structure, formal and informal organization, centralization vs decentralization, and span of management. It provides definitions for key terms and compares different types of organizational structures. For example, it notes that vertical structure indicates lines of authority while horizontal structure refers to work specialization. A formal organization has a clear hierarchy and defined roles, while an informal organization emerges from social interactions.
The document discusses functional and product/market organization structures. It describes functional structure as organizing resources by specialized tasks and departments, with advantages being specialization and order but disadvantages including slow decision making. Product/market structure organizes by products and customer groups, allowing a focus on products but with potential for sub-optimization. The document provides details on each structure type, including their suitability for different situations, characteristics, and strengths and weaknesses.
The document discusses organizational structures used by companies. It describes four main types of structures - line, line and staff, matrix, and team. Key factors that influence a company's structure are its size, products/services, and stage of growth. As a company grows, its structure typically becomes more complex, shifting from a line to later stages involving more delegation and collaboration. The roles of the CEO and board of directors in leading the company are also outlined.
This document discusses key concepts related to organizational design including centralization, complexity, formalization, structure, and departmentalization. It defines these terms and discusses their advantages and disadvantages. The document also covers different types of organizational structures like mechanistic, organic, and matrix structures. Finally, it discusses factors that influence organizational design decisions like span of control and flexibility.
A presentation which discusses the basics of organizational structure. Created as a teaching resource for Organizational Behaviour unit of Pearson HND Business Management Program.
Bureaucracies are characterized by impersonality, where characteristics like race, gender, and ethnicity are irrelevant. Workers are chosen based on their ability to perform job tasks. Bureaucracies also employ specialized jobs and a formal division of labor. Organizational structure involves decisions about work specialization, departmentalization, chains of command, span of control, and the degree of centralization. These elements define how jobs are arranged and how authority flows within an organization.
This document discusses different types of organization structures including functional, divisional, matrix, and network structures. It provides details on key aspects of organizing like organization charts, authority, delegation, and coordination. Specific advantages are outlined for functional and divisional organizations with specialized activities and product lines respectively. Coordination through standardization and formalization is also covered.
This document discusses different organizational structures used by companies, including functional, divisional, and matrix structures. It provides examples of each type of structure and outlines their advantages and disadvantages. Specifically, it discusses:
- The functional structure groups employees by skills and expertise into departments like production, marketing, finance, etc. This allows for specialization but can lack coordination.
- The divisional structure separates a company by products, markets, or geography into independent divisions. This improves responsiveness but increases costs and overhead.
- The matrix structure combines functional and project management, with employees reporting to both a functional manager and a project manager. This facilitates collaboration but can be confusing with dual reporting lines.
The document also
The document discusses the design of management structures. It notes that management involves organization, planning, direction, controlling, decision making, and other functions. As a business expands, specialist operations are formed and general management functions may be retained by the owner. A hierarchical structure consists of basic building blocks like functional groups, departments, and organizational units. Management groups can be functional, horizontal, mixed, or matrix. The matrix structure combines the efficiency of functional groups with the effectiveness of mixed groups by integrating people from different functions for projects.
ACCA F1/CAT FAB : SECTION B (BUSINESS ORGANISATION, STRUCTURE & STRATEGY)Najihatul Asikin
This document discusses informal organization within companies. It describes how informal organization includes social relationships, unofficial communication channels, behavioral norms, and informal power structures. While informal organization can foster cooperation and knowledge sharing, it can also spread misinformation and allow work practices to circumvent formal safety and quality procedures. The document also notes how individuals may conform or counter-conform to informal group norms under different circumstances.
Lecture note-12-organizational-structure-and-designWakeel Ahmed
An organizational structure divides tasks into jobs, groups jobs into departments, and coordinates relationships between jobs and departments. Developing or changing this structure is called organizational design, which involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. Common types of departmentalization include functional, product, customer, geographic, and process. The chain of command clarifies reporting relationships and authority. Span of control refers to the number of subordinates a manager oversees. Centralization concentrates decision-making at the top while decentralization pushes it down. Formalization standardizes jobs and guides employee behavior through rules.
This document discusses organizational structures and their key characteristics. It defines an organization as a social unit of people systematically structured to meet goals on an ongoing basis. All organizations have a management structure that determines relationships and allocates roles. There are four main types of organizational structures: tall, flat, virtual, and boundaryless. Tall structures have many management levels and a strict chain of command, while flat structures empower employees with broader responsibilities and more autonomy. Virtual structures use technology to connect people who primarily interact electronically. Boundaryless structures are highly flexible and collaborative with fewer predefined boundaries. Organizational structures impact effectiveness, efficiency, communication, and overall success.
The document discusses various aspects of organizational structure, including:
1) It defines organizational structure as how job tasks are formally divided, grouped and coordinated within a company.
2) Key elements that make up organizational structure are departmentalization, chain of command, span of control, centralization/decentralization.
3) The advantages and disadvantages of different spans of control (narrow vs wide) and organizational designs (functional, product, geographic, matrix) are outlined.
At Microsoft, the company organizes itself according to four customer segments to better understand and serve different types of customers. This allows Microsoft to design specific products and services for each segment. There are six key elements that managers consider when designing an organizational structure: work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. These elements determine how tasks are divided and coordinated within a company. Common organizational designs include simple structures, bureaucracies, and matrix structures. The appropriate design depends on factors like the company's strategy, size, and environment.
Organizational Structures (on the basis of functions & Divisions) Deepika Malhotra
Organizational structures can be based on functions, divisions, products, geography or markets. The key factors that influence organizational design include size, environment, strategy, technology, history, customers, processes, people, and geography. An organization's structure must support its strategy and arrange resources efficiently. Common structures include functional, divisional, geographic, market, and hybrid forms. The structure should be designed based on contingencies to maximize organizational effectiveness.
This document provides information on organizational structure and types of organizational structures. It discusses four main types of organizational structures - tall, flat, virtual, and boundaryless. A tall structure has a long chain of command with many management levels, while a flat structure has fewer levels and broader spans of control. A virtual structure uses technology to connect people who may be in different locations. A boundaryless structure encourages integration and partnerships beyond traditional boundaries. The document also provides examples of the organizational structures of two Indian IT companies - Infosys and L&T Infotech.
This document outlines different aspects of organizational structure, including specialization, centralized vs decentralized organizations, and span of management. Specialization refers to dividing work into separate jobs to increase productivity and efficiency. Centralized organizations make major decisions at the top with little communication across departments, while decentralized organizations delegate authority, responsibility, and accountability to lower levels. Span of management refers to the number of employees reporting to a single manager, with narrow spans having fewer subordinates and wide spans having more.
Organization structure is important for businesses to function properly. It defines responsibilities and roles to allow for coordination between departments and workers. There are different types of organization structures such as line, line and staff, and functional, each with their own advantages and disadvantages. Financing is also crucial for businesses, as most problems stem from insufficient capital. Capital can come from owners or lenders, and businesses often use a combination of both to meet their fixed, working, and expansion capital needs. Proper organization structure and financing are essential for business success.
Flat organizational structure by apoorva saini (1)APOORVASAINI
The document discusses the emerging trend of flat organizational structures. It begins by defining traditional hierarchical organizational structures and then outlines the key features of flat structures, including fewer management layers, decentralization, wider spans of control, and faster decision-making. The reasons provided for the rise of flat structures are improved communication, better team spirit, lower costs, and easier decision-making. An example is given of Saturn Corporations, a GM subsidiary that adopted a nested circle structure rather than a pyramid. Fields like education and travel agencies are also transforming to flatter models.
The document discusses organizational structure and design. It defines organizational structure as the hierarchy of people and departments in an organization and how information flows. Structure is important as it ensures efficient operations and defines roles and responsibilities. There are different types of structures like functional, line, and matrix. Key components of structure include work specification, departmentalization, chain of command, span of control, and centralization vs decentralization. Structure influences behavior, relationships, and goal-oriented work. Proper structure is important for good performance while poor structure makes it impossible.
The document provides an overview of organizational structure and strategy concepts. It discusses departmentalization approaches, authority structures, job design methods, and ways companies are redesigning internal and external organizational processes. It also describes the components of competitive advantage and the strategy making process, including different corporate, industry, and firm-level strategies.
Organizing: the process by which managers establish working relationships among employees to achieve goals.
Organizational Structure: formal system of task & reporting relationships showing how workers use resources.
Organizational design: managers make specific choices resulting in a given organizational structure.
Successful organizational design depends on the organization’s unique situation.
This presentation is about how organising is an impotant function in creating sound Organisation Structure. It compares the merits and demerits of various organisation structures.
This document discusses organizational structure and behavior. It defines organizational structure as the formal divisions, groupings, and coordination of job tasks within an organization. The key elements of organizational structure are identified as work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. Different organizational designs like the simple structure, bureaucracy, team structure, and virtual organization are also summarized. The document then introduces organizational behavior as the study of how individuals and groups act within organizations. Interpersonal skills that are important for interacting with others are listed as well.
This document discusses matrix organizational structures. It defines a matrix structure as one that takes advantages of both functional and projectized structures, allowing a company to address multiple business dimensions using multiple command structures. The document outlines three main types of matrix structures: strong/project matrix, balanced matrix, and weak/functional matrix. It explains the characteristics of each type and where power typically lies between project managers and functional managers. Advantages and challenges of working in a matrix structure are also presented.
This document discusses different types of organizational structures. It describes centralization versus decentralization in decision making. The main organizational structures covered are the functional structure, which groups employees by specialty; the divisional structure, which groups them by product or market; the matrix structure, which combines functional and divisional; the line and staff structure, which combines a top-down line with support staff; and the project structure, which forms teams to complete specific projects.
This document discusses organizational structure and culture. It defines organizational structure as how job tasks are divided and coordinated, and discusses common structural elements like work specialization, departmentalization, and span of control. It also examines why organizational structures differ based on factors like strategy, size, technology, environment, and global implications. Finally, it introduces the topic of organizational culture and the importance of creating an ethical culture.
This document discusses organizational structure and design. It defines organizational structure as the formal arrangement of jobs within an organization and organizational design as decisions about key elements like work specialization, departmentalization, chain of command, and formalization. The document describes different types of departmentalization including functional, geographic, product, process, and customer. It also discusses factors that influence organizational structure like strategy, size, technology, and the environment. Different traditional and contemporary organizational designs are presented like functional structures, divisional structures, matrix structures, and learning organizations.
Business AnalystProject Manager_PampHerIncBusinessPlan_PresentationHector Rueda
PampHer Inc. is a website that allows customers to connect with and book local day spas, nail salons, and hair salons for free. It follows a business model similar to food ordering sites by earning commissions from bookings made through the website and membership fees paid by salons. The founder is seeking $161,000 in startup capital. The target market is adults aged 25-54 in New York City. Operations will be run out of an office in Brooklyn. Financial projections estimate break-even by January 2014 and profits of over $200,000 by 2017, resulting in a business valuation of over $1.6 million.
The document discusses the design of management structures. It notes that management involves organization, planning, direction, controlling, decision making, and other functions. As a business expands, specialist operations are formed and general management functions may be retained by the owner. A hierarchical structure consists of basic building blocks like functional groups, departments, and organizational units. Management groups can be functional, horizontal, mixed, or matrix. The matrix structure combines the efficiency of functional groups with the effectiveness of mixed groups by integrating people from different functions for projects.
ACCA F1/CAT FAB : SECTION B (BUSINESS ORGANISATION, STRUCTURE & STRATEGY)Najihatul Asikin
This document discusses informal organization within companies. It describes how informal organization includes social relationships, unofficial communication channels, behavioral norms, and informal power structures. While informal organization can foster cooperation and knowledge sharing, it can also spread misinformation and allow work practices to circumvent formal safety and quality procedures. The document also notes how individuals may conform or counter-conform to informal group norms under different circumstances.
Lecture note-12-organizational-structure-and-designWakeel Ahmed
An organizational structure divides tasks into jobs, groups jobs into departments, and coordinates relationships between jobs and departments. Developing or changing this structure is called organizational design, which involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. Common types of departmentalization include functional, product, customer, geographic, and process. The chain of command clarifies reporting relationships and authority. Span of control refers to the number of subordinates a manager oversees. Centralization concentrates decision-making at the top while decentralization pushes it down. Formalization standardizes jobs and guides employee behavior through rules.
This document discusses organizational structures and their key characteristics. It defines an organization as a social unit of people systematically structured to meet goals on an ongoing basis. All organizations have a management structure that determines relationships and allocates roles. There are four main types of organizational structures: tall, flat, virtual, and boundaryless. Tall structures have many management levels and a strict chain of command, while flat structures empower employees with broader responsibilities and more autonomy. Virtual structures use technology to connect people who primarily interact electronically. Boundaryless structures are highly flexible and collaborative with fewer predefined boundaries. Organizational structures impact effectiveness, efficiency, communication, and overall success.
The document discusses various aspects of organizational structure, including:
1) It defines organizational structure as how job tasks are formally divided, grouped and coordinated within a company.
2) Key elements that make up organizational structure are departmentalization, chain of command, span of control, centralization/decentralization.
3) The advantages and disadvantages of different spans of control (narrow vs wide) and organizational designs (functional, product, geographic, matrix) are outlined.
At Microsoft, the company organizes itself according to four customer segments to better understand and serve different types of customers. This allows Microsoft to design specific products and services for each segment. There are six key elements that managers consider when designing an organizational structure: work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. These elements determine how tasks are divided and coordinated within a company. Common organizational designs include simple structures, bureaucracies, and matrix structures. The appropriate design depends on factors like the company's strategy, size, and environment.
Organizational Structures (on the basis of functions & Divisions) Deepika Malhotra
Organizational structures can be based on functions, divisions, products, geography or markets. The key factors that influence organizational design include size, environment, strategy, technology, history, customers, processes, people, and geography. An organization's structure must support its strategy and arrange resources efficiently. Common structures include functional, divisional, geographic, market, and hybrid forms. The structure should be designed based on contingencies to maximize organizational effectiveness.
This document provides information on organizational structure and types of organizational structures. It discusses four main types of organizational structures - tall, flat, virtual, and boundaryless. A tall structure has a long chain of command with many management levels, while a flat structure has fewer levels and broader spans of control. A virtual structure uses technology to connect people who may be in different locations. A boundaryless structure encourages integration and partnerships beyond traditional boundaries. The document also provides examples of the organizational structures of two Indian IT companies - Infosys and L&T Infotech.
This document outlines different aspects of organizational structure, including specialization, centralized vs decentralized organizations, and span of management. Specialization refers to dividing work into separate jobs to increase productivity and efficiency. Centralized organizations make major decisions at the top with little communication across departments, while decentralized organizations delegate authority, responsibility, and accountability to lower levels. Span of management refers to the number of employees reporting to a single manager, with narrow spans having fewer subordinates and wide spans having more.
Organization structure is important for businesses to function properly. It defines responsibilities and roles to allow for coordination between departments and workers. There are different types of organization structures such as line, line and staff, and functional, each with their own advantages and disadvantages. Financing is also crucial for businesses, as most problems stem from insufficient capital. Capital can come from owners or lenders, and businesses often use a combination of both to meet their fixed, working, and expansion capital needs. Proper organization structure and financing are essential for business success.
Flat organizational structure by apoorva saini (1)APOORVASAINI
The document discusses the emerging trend of flat organizational structures. It begins by defining traditional hierarchical organizational structures and then outlines the key features of flat structures, including fewer management layers, decentralization, wider spans of control, and faster decision-making. The reasons provided for the rise of flat structures are improved communication, better team spirit, lower costs, and easier decision-making. An example is given of Saturn Corporations, a GM subsidiary that adopted a nested circle structure rather than a pyramid. Fields like education and travel agencies are also transforming to flatter models.
The document discusses organizational structure and design. It defines organizational structure as the hierarchy of people and departments in an organization and how information flows. Structure is important as it ensures efficient operations and defines roles and responsibilities. There are different types of structures like functional, line, and matrix. Key components of structure include work specification, departmentalization, chain of command, span of control, and centralization vs decentralization. Structure influences behavior, relationships, and goal-oriented work. Proper structure is important for good performance while poor structure makes it impossible.
The document provides an overview of organizational structure and strategy concepts. It discusses departmentalization approaches, authority structures, job design methods, and ways companies are redesigning internal and external organizational processes. It also describes the components of competitive advantage and the strategy making process, including different corporate, industry, and firm-level strategies.
Organizing: the process by which managers establish working relationships among employees to achieve goals.
Organizational Structure: formal system of task & reporting relationships showing how workers use resources.
Organizational design: managers make specific choices resulting in a given organizational structure.
Successful organizational design depends on the organization’s unique situation.
This presentation is about how organising is an impotant function in creating sound Organisation Structure. It compares the merits and demerits of various organisation structures.
This document discusses organizational structure and behavior. It defines organizational structure as the formal divisions, groupings, and coordination of job tasks within an organization. The key elements of organizational structure are identified as work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. Different organizational designs like the simple structure, bureaucracy, team structure, and virtual organization are also summarized. The document then introduces organizational behavior as the study of how individuals and groups act within organizations. Interpersonal skills that are important for interacting with others are listed as well.
This document discusses matrix organizational structures. It defines a matrix structure as one that takes advantages of both functional and projectized structures, allowing a company to address multiple business dimensions using multiple command structures. The document outlines three main types of matrix structures: strong/project matrix, balanced matrix, and weak/functional matrix. It explains the characteristics of each type and where power typically lies between project managers and functional managers. Advantages and challenges of working in a matrix structure are also presented.
This document discusses different types of organizational structures. It describes centralization versus decentralization in decision making. The main organizational structures covered are the functional structure, which groups employees by specialty; the divisional structure, which groups them by product or market; the matrix structure, which combines functional and divisional; the line and staff structure, which combines a top-down line with support staff; and the project structure, which forms teams to complete specific projects.
This document discusses organizational structure and culture. It defines organizational structure as how job tasks are divided and coordinated, and discusses common structural elements like work specialization, departmentalization, and span of control. It also examines why organizational structures differ based on factors like strategy, size, technology, environment, and global implications. Finally, it introduces the topic of organizational culture and the importance of creating an ethical culture.
This document discusses organizational structure and design. It defines organizational structure as the formal arrangement of jobs within an organization and organizational design as decisions about key elements like work specialization, departmentalization, chain of command, and formalization. The document describes different types of departmentalization including functional, geographic, product, process, and customer. It also discusses factors that influence organizational structure like strategy, size, technology, and the environment. Different traditional and contemporary organizational designs are presented like functional structures, divisional structures, matrix structures, and learning organizations.
Business AnalystProject Manager_PampHerIncBusinessPlan_PresentationHector Rueda
PampHer Inc. is a website that allows customers to connect with and book local day spas, nail salons, and hair salons for free. It follows a business model similar to food ordering sites by earning commissions from bookings made through the website and membership fees paid by salons. The founder is seeking $161,000 in startup capital. The target market is adults aged 25-54 in New York City. Operations will be run out of an office in Brooklyn. Financial projections estimate break-even by January 2014 and profits of over $200,000 by 2017, resulting in a business valuation of over $1.6 million.
Organisation Study at VJ Industries Pvt LtdRakshith M.R
Organisation study in Vj industries pvt ltd was 30 days in plant training where it excelled the knowledge of various department functions and working in the real scenario
The document discusses organizational structure and design. It begins by outlining the key topics to be covered, including departmentalization, establishing reporting relationships, allocating authority, and coordinating activities. Several principles of organization design are then explained, such as division of labor, unity of command, and spans of control. Different approaches to departmentalization are described, including functional, product, and matrix structures. The document also includes organizational charts for the Hirdaramani Group, a large conglomerate operating in multiple industries and countries. Some challenges of the current structure are noted.
The document discusses the major challenges facing project managers in negotiating or manipulating the project environment. It explains that project managers must understand the cultural, social, political, physical, economic, technological, competitive, and global environments in which a project takes place in order to effectively achieve the project's goals. The ability to integrate an awareness of these various environments is essential for project managers to navigate challenges and influence outcomes positively.
The document compares pictures of landscapes with varying levels of environmental pollution. The first pictures show quiet towns, beaches with clear water, and areas with abundant vegetation. The second pictures depict big cities with many cars that produce noise and air pollution, beaches filled with trash, and places without any plants. The document expresses regret about polluting areas and hypothesizes that recycling more would reduce trash, predicting a future without clean water if pollution continues.
Nike is the world's largest sports apparel company. It has strong brand recognition and focuses on producing high-quality athletic products. While Nike faces competition from companies like Adidas, it maintains a leading position through marketing, innovation, and expanding into new markets globally. The analysis identifies opportunities for Nike to further penetrate growing markets and develop new product lines, while also addressing threats from competitors and shifting consumer preferences.
The document discusses organizational structures and control systems for international business. It describes centralized vs decentralized structures and covers functional, divisional, product-based, and matrix structures. It also discusses global business planning, organizing, information, and control systems. The key aspects are integrating international business operations and choosing an organizational structure that implements strategy and balances centralized vs decentralized decision-making.
Organization structure in international businessMandeep Raj
The document discusses different types of organizational structures used in international business. It describes vertical differentiation as determining centralization vs decentralization of decision-making. Centralization means decisions are made at headquarters level while decentralization means local subsidiaries make decisions. Horizontally, structures are designed based on functions, products, geographic regions, or a matrix. Functional structure groups by business functions. Divisional structures group by international business, products, or geographic regions. The matrix structure combines functional and divisional forms to balance global integration with local responsiveness.
This document discusses the importance of strategic direction and organizational design. It defines strategic direction as an organization's roadmap that outlines objectives, resources, and how the organization will function. However, many organizations fail to incorporate internet and technology into their strategic vision. The document also discusses strategic business units (SBUs) which allow for effective control over business factors. There are limitations to the SBU model as well. The roles of organizational design are outlined, including bringing a rigorous design approach, linking organization to strategy, focusing head offices on value creation, driving accountability, enabling collaboration, and dealing with complexity. Finally, it states that as economic systems become more complex, strategic management may help restore entrepreneurial vigor through rigorous planning and operational execution
The document discusses different aspects of organizational structures, processes, and relationships. It provides an overview of various structural designs like functional, multidivisional, matrix, and transnational structures. It also discusses control processes, planning processes, cultural processes, and performance targets that organizations use. Additionally, it covers the importance of relationships between different units, centers, and strategic alliances networks that are crucial for organizational success. The key idea is that formal structures and processes need to be aligned with informal relationships and processes into coherent configurations for an organization to operate effectively.
This document discusses various concepts related to organizational structure and design. It begins by defining organizing and organization design as management decisions that result in a specific organizational structure. An organization structure consists of the pattern of jobs and job groups in an organization. Common organization structures discussed include line, line and staff, functional, committee, matrix, and modern structures like virtual organizations, cellular organizations, team structures, and boundaryless organizations. The document also covers organization charts, departmentalization based on functions, geography, products, and customers, and principles of organization.
(minimum of 500–600 words). Be sure to incorporate your weekly rea.docxkatherncarlyle
(minimum of 500–600 words). Be sure to incorporate your weekly readings, citing your sources using proper APA guidelines (including in-text citations and references).
1. Compare and contrast each of the five organizational structures from your reading (functional, divisional, matrix, team-based, and virtual network).
2. If you were to choose one structure in which to work which would you choose and why?
3. Compare the organizational structures of Google and Wal-Mart.
4. Explain what types of control processes might be found in each of the organizational structures.
5. Describe what types of quality management processes might be found in each of the organizational structures.
Notes from readings
In a functional structure, also called a U-form (unitary structure), activities are grouped together by common function from the bottom to the top of the organization.33 The functional structure groups positions into departments based on similar skills, expertise, work activities, and resource use. A functional structure can be thought of as departmentalization by organizational resources because each type of functional activity—accounting, human resources, engineering, and manufacturing—represents specific resources for performing the organization's task. People, facilities, and other resources representing a common function are grouped into a single department. One example is Blue Bell Creameries, which relies on in-depth expertise in its various functional departments to produce high-quality ice cream for a limited regional market. The quality control department, for example, tests all incoming ingredients and ensures that only the best go into Blue Bell's ice cream. Quality inspectors also test outgoing products and, because of their years of experience, can detect the slightest deviation from expected quality. Blue Bell also has functional departments such as sales, production, maintenance, distribution, research and development, and finance.34
The functional structure is a strong vertical design. Information flows up and down the vertical hierarchy, and the chain of command converges at the top of the organization. In a functional structure, people within a department communicate primarily with others in the same department to coordinate work and accomplish tasks or implement decisions that are passed down the hierarchy. Managers and employees are compatible because of similar training and expertise. Typically, rules and procedures govern the duties and responsibilities of each employee, and employees at lower hierarchical levels accept the right of those higher in the hierarchy to make decisions and issue orders.
Functional Advantages and Disadvantages
Grouping employees by common task permits economies of scale and efficient resource use. For example, at American Airlines, all information technology people work in the same large department. They have the expertise and skills to handle almost any issue related to information technology for ...
What Is Organizational Structure1Identify the six element.docxphilipnelson29183
What Is Organizational Structure?
1
Identify the six elements of an organization’s structure.
An organizational structure defines how job tasks are formally divided, grouped, and coordinated. Managers need to address six key elements when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.2 Exhibit 15-1 presents each of these elements as answers to an important structural question, and the following sections describe them.
organizational structure
The way in which job tasks are formally divided, grouped, and coordinated.
Work Specialization
Early in the twentieth century, Henry Ford became rich by building automobiles on an assembly line. Every Ford worker was assigned a specific, repetitive task such as putting on the right front wheel or installing the right front door. By dividing jobs into small standardized tasks that could be performed over and over, Ford was able to produce a car every 10 seconds, using employees who had relatively limited skills.
Ford demonstrated that work can be performed more efficiently if employees are allowed to specialize. Today, we use the term work specialization, or division of labor, to describe the degree to which activities in the organization are divided into separate jobs. The essence of work specialization is to divide a job into a number of steps, each completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entirety.
work specialization
The degree to which tasks in an organization are subdivided into separate jobs.
The Key Question The Answer Is Provided by
1. To what degree are activities subdivided Work into separate jobs? specialization
2. On what basis will jobs be grouped together? Departmentalization
3. To whom do individuals and groups report? Chain of command
4. How many individuals can a manager efficiently and effectively direct? Span of control
5. Where does decision-making authority lie? Centralization and decentralization
6. To what degree will there be rules and regulations to direct employees and managers? Formalization
Exhibit 15-1
Key Design Questions and Answers for Designing the Proper Organizational Structure
By the late 1940s, most manufacturing jobs in industrialized countries featured high work specialization. Because not all employees in an organization have the same skills, management saw specialization as a means of making the most efficient use of its employees’ skills and even successfully improving them through repetition. Less time is spent in changing tasks, putting away tools and equipment from a prior step, and getting ready for another. Equally important, it’s easier and less costly to find and train workers to do specific and repetitive tasks, especially in highly sophisticated and complex operations. Could Cessna produce one Citation jet a year if one perso.
This chapter examines how firms structure their international organizations to implement strategies and control operations across borders. It discusses traditional structures like functional, divisional, and matrix structures, as well as contemporary structures like network and virtual organizations. The chapter also addresses the tradeoff between centralized and decentralized decision-making and how firms coordinate and integrate different parts of the organization on a global scale.
The vision is to excel in civil engineering education to prepare competent engineers with lifelong learning for society's needs. The mission is to impart quality education through effective teaching, provide a stimulating research environment, develop professional skills and right attitude in students to succeed, and imbue moral and ethical values concerning society and environment. The document then discusses organizing human resources for civil engineering projects, including defining organization, objectives of organization, and principles of organization such as responsibility, authority, and division of work.
This document discusses organization design and different types of organizational structures. It begins by defining organization design as a process that shapes how organizations are structured in terms of teams, reporting lines, decision making, and communication. It then examines hierarchical and organic designs, providing examples like functional structures, divisional structures, flat structures, and matrix structures. The document also discusses newer design approaches and factors to consider in organization design like strategy, size, environment, controls, and incentives.
This document discusses matrix organizational structures. A matrix structure involves employees reporting to both functional and project managers, creating potential conflicts when managers' priorities do not align. Employees must be trained to operate in this environment with multiple reporting lines. While matrix structures provide flexibility, they can also lead to ambiguity if responsibilities are not clearly defined. Effective communication and coordination between managers is important for the matrix structure to function properly.
The document discusses different ways to structure organizations through departmentation. It describes five common types of departmentation: by product, by function, by region/territory, by customer, and by process. Each structure has advantages like specialization and focus but also disadvantages like potential lack of coordination or duplication of roles. The document also discusses matrix structures and emerging concepts like strategic business units and virtual organizations.
Organizational Behavior & Organization Designs Abdullah Razaq
Organizational behavior and design can be summarized in 3 points:
1. Organizational design refers to how managers structure organizations to achieve goals through elements like task allocation, reporting relationships, and departmentalization. Common designs include functional, divisional, matrix, and hybrid forms.
2. Organizational behavior studies human behavior, attitudes, and performance in organizations. It draws from disciplines like psychology, sociology, and anthropology.
3. Managers perform functions like planning, organizing, leading, and controlling. Their roles can be informational, interpersonal, and decisional. Organizational behavior aims to improve outcomes like productivity, turnover, effectiveness, and job satisfaction.
The document discusses organization architecture and structure. It defines organization architecture as including formal structure, controls, incentives, culture and people. Structure can be designed with vertical and horizontal differentiation and integrating mechanisms. Centralization concentrates decision-making at the top while decentralization vests it lower down. Tall hierarchies have many layers while flat hierarchies have few. The appropriate structure depends on factors like strategy, environment and need for coordination.
The document discusses organization architecture, which refers to an organization's formal structure, control systems, incentives, processes, culture, and people. It states that for a firm to be profitable, these elements must be internally consistent and match the firm's strategy. It then provides details on key aspects of organization architecture, including organization structure, control systems and incentives, and organizational culture. It emphasizes that all these elements should focus on enabling people to help the organization perform well.
The document discusses how IT organizations are changing and the factors affecting them. It covers trends like increased use of cloud computing, virtualization, mobility and social networking. Organization structures are shifting from centralized to more decentralized models. Future workforce demographics will be more global and virtual. The role of the CIO is emerging as a business leader who provides strategic vision while managing IT operations and costs.
Foundation of Organization Design (MGMT673)Reading Material Or.docxericbrooks84875
Foundation of Organization Design
(MGMT673)
Reading Material Organizational Structures
Types of Structures
There are many types of organizational structures. Each structure functions in different ways, demands different skills from employees, and is influenced by corporate size, strategy, culture, and the resources the organization has for managing the structure.
Organizations have been known to change their structure to meet market demands, only to discover that they overlooked something major, which is now derailing their work. For example, the computer system an organization had in place could not support the demands of the new structure, or other stakeholders (such as suppliers, government regulators, or employees) refused to work with the new structure. In many cases, an organization has been forced to return to its old structure at an enormous cost of both time and money. Though structural change should not be feared, all critical stakeholders must be in on the early stages of planning. This allows the consultants and management to understand both the intended, as well as the potential unintended, consequences of the new design.
The following are some basic organizational structures' strengths, weaknesses, and limitations.
Functional Organization
The functional organization is a widely used design and has existed since Roman times. Such an organization is generally broken into departments or divisions, such as manufacturing, sales, accounting, and human resources. The importance of the different structural units has emerged over time and can be determined by looking at the organization’s history. As functional organizations grew, they often added on new units or subunits. Like all organizational designs, the functional organization has strengths and weaknesses. The strength of the functional organization is that when the environments these organizations grow up in are stable, and the workforce is homogenous, these organizations work very well.
There is a challenge in functional organization design. Through the years, as organizational environments became more turbulent, as the work force became increasingly diversified, and as technology became more demanding and complicated, it also became more costly to keep the functional organizations performing well.
Divisional Organization
The divisional organization is built around products, services, geography, or customers, rather than functions. It came into being about the same time as the growth of the large American corporations and the early development of the mass markets.
Some of the strengths of divisional organizations are that they make accountability of managers easier, promote delegation, focus interest on the customer, and build departmental cohesion. Weaknesses of this structure are inefficiency and multiple demands on people, which increase stress and cause goal conflict. The latter is due to focusing on department objectives at the expense of the overall organization’s .
The document discusses various types of organizational structures including functional, divisional, matrix, and network structures. It provides details on each structure type, including their advantages and disadvantages. For example, it explains that a functional structure groups people based on expertise, while a divisional structure groups them according to products, markets, or customers. A matrix structure allows dual grouping by function and product.
Dynacorp had been a leading information systems company but was facing issues as it grew. Its existing functional organizational structure divided it into engineering, manufacturing, and marketing divisions led by executives. However, communication between divisions was slowing innovation. An alternative proposed was a product division structure with each business unit led by a chief manager to improve communication and responsiveness. This structure organizes by product or service and allows everyone to contribute to the same final output. The proposed structure encouraged transparency but may not be suitable for a large, complex company and would require organizational change over years.
This document discusses different types of organizational structures. It describes functional, product/market, and matrix structures.
Functional structure groups employees by their functions or related activities. It has advantages like efficiency and easier supervision but can be difficult to coordinate across departments as an organization grows.
Product/market structure groups employees involved in producing and marketing specific products, geographic areas, or customer types. It enhances decision-making and accountability but risks divisional interests overriding overall goals.
Matrix structure combines functional and product/market structures, with employees reporting to both functional and project managers. It aims to balance the benefits and drawbacks of the other structures.
The document also discusses formal vs informal organizational structures and how informal relationships help
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Organization structure
1. Organizations are working in the Open system.
Relatively static environments and others face
dynamic environment.
As the environmental complexity increases, the
organization structure is less formalized and less
centralized.
Structural design is an important tool that
managers employ to eliminate or minimize the
impact of environmental uncertaininity.
2. 20 industrial firms in the U.K, to find out
the specific links between environment
and organization . These 20 firms were
operating in both ,stable and dynamic
environments. The general findings
states that successful firms in stable
environments were MECHANISTIC in
structure ,whereas successful firms in
dynamic environment tended to be more
ORGANIC or FLEXIBLE structures.
8. Mechanistic Structures Organic Structures
1. Operate in dynamic
environments ,characterized, by
faster rates of changes and
greater uncertainty.
2. A more realistic divisional type
of division of work,where tasks
are not clearly defined in
advance but are adjusted and
redefined through employee
interaction.
3. Less hierarchy of authority and
control.
4. Decentralized
5. Lateral communication.
1. Operate in stable environment,
characterized by slow
technological and market
changes.
2. A functional division of work
where tasks are broken down into
specialized ,separate tasks.
3. Strict hierarchy of authority and
controls .Many rules and
procedures.
4. Most decisions are made at the top
5. Communication is vertical
9. Formal Vs Informal Organization
Formal Organization :
It is deliberately designed.
It refers to the structure of well-Defined jobs , each bearing a
definite authority, responsibility .
The structure is built on 4 Pillars.( Division of labor, scalar process, structure
and span of control)
Is designed by the Top Management.
Concentrates on the performance of the job.
Coordination among members is maintained through processes
and procedures.
10. Refer to the natural grouping of people on the basis of
some similarity in an organization.
Some sort of pattern of relationship is developed.
It is a natural outcome at the workplace.
Membership is voluntary.
Behavior Is coordinated by group norms .
11. Departmentation is a means of dividing a large
and complex organization into smaller ,flexible
administrative units.
12. A form of departmentalization in which individuals engaged in one
functional activity (Marketing, Finance, HRM) , are grouped into one unit
E x e c . V . P .
F i n a n c e & A d m i n .
S e n i o r V . P .
S t o r e s
S e n i o r V . P .
L o g i s t i c s
S e n i o r V . P .
H u m a n R e s o u r c e
C l a r k J o h n s o n
C E O
14. Departmentation by product is adopted in the case of a multi product
enterprise. The organization is divided into divisions which bring
together those who are involved with a certain type of product.
M a n a g e r
( A u t o m o b ile s )
M a n a g e r
( R e f r ig e r a t o r s )
M a n a g e r
( S p a r e P a r ts )
M a n a g e r
( C o m p u t e r A c c e s s o r ie s )
P r e s id e n t
V ic e P r e s id e n t
( P r o d u c t io n )
15. The resources of one particular unit are deployed on the
product.
All the activities for a single product or purpose are brought
under one manager.
It becomes easy to fix accountability .
Whenever necessary , the autonomous units can be lopped off
with minimal effect on the entire organization.
16. Duplication of Resources.
Competition crops up within the organization
Autonomy of divisional manager is exercised
within limits.
17. Geographic Departmentation ,facilitates adaptation to territorial
differences. Large companies that distribute products on a
massive scale nationally, often cannot coordinate all regions
from the headquarters.
Each region of the country has distinct needs, tastes and facilities
that demand coordination.
Decisions regarding pricing and marketing may be left to the
territorial managers who are close to customers and know their
needs better.
18. President
Vice President
(Marketing)
Manager
East Zone
Manager
West Zone
Manager
South Zone
Manager
North Zone
19. Strengths:
1. Assess the needs of Local Customers closely and serve them
well.
2. It is easy to pin point responsibility on Zonal Centers.
3. Expertise in a particular area.
4. Results in saving labor & Transportation costs.
Weaknesses:
1. Geographical distance gives rise to the problems of
communication ,coordination and control especially between
the head office and the branches.
2. Duplication of physical facilities may increase the costs of
operations.
20. The most recent approach , where a variety of industries ,
vertically integrated ,hierarchical organizations are giving way to
loosely interconnected groups of companies with permeable
boundaries.
Outsourcing which means farming out certain activities has
become a significant trend. In addition ,partnerships, alliances
,and other complex collaborative forms are now a leading
approach to achieving strategic goals.
21. The virtual network structure means that the firm
subcontracts most of its major functions to separate
companies and coordinates their activities from a small
headquarters organization.
How it Works :
The organization can be viewed as a central hub surrounded by a
network of outside specialists. Rather than being housed under one
roof ,services are outsourced to separate organizations that are
connected electronically to the central office.
22. Company
core
(HUB)
Accounts receivable provided by
a company in the US
Design provided by a company in
Canada
Manufacturing being provided by
a company in Asia.
Distribution being provided by a
company in Europe
23. STRIDA
How do two people run an entire company that sells thousands of high-tech
folding bicycles all over the world?
Steedman Bass and Bill Bennet do it with a virtual network approach that
outsources design ,manufacturing ,customer service, logistics ,accounting ,and
just about everything else to other organizations.
Bass, an avid cyclist ,got into the bicycle business when he and his partner
Bennnet bought the struggling British company strida,which was having trouble
making enough quality bicycles to meet even minimum orders. The partners soon
realized why strida was struggling . The design for the folding bicycle was a
clever engineering idea, but it was a manufacturing nightmare .Bass and Bennet
immediately turned over production engineering and new product development
to an American Bicycle designer, still with the intensions of building bikes at the
Birmingham factory. However, a large order from Italy sent them looking for other
options. Eventually ,they transferred all manufacturing to Ming Cycle company of
Taiwan ,which builds the bikes with parts sourced from parts manufacturers in
Taiwan and China.
Finally, the last piece of the puzzle was to contract with the company in
Birmingham that would take over everything else-from marketing to distribution.
Bass and Bennet concentrate their energies on managing the partnerships that
make the network function smoothly.
24. With a network structure like this ,it is difficult to
answer the question ,” Where is the organization?”.
In traditional terms .The different organizational parts
may be spread all over the world. They are drawn
together contractually and coordinated electronically
,creating new form of organization. Much like
building blocks,parts of the network can be added or
taken way to meet changing need.
25. Some positions in an Organization are primary to the
company’s mission, whereas others are secondary – in
the form of support or indirect contribution.
26. Line Functions
Line Functions are those that are related directly with the attainment
of the Organizational Objectives . E.g. Producing or selling a product
or service.
A line Manager has a clear line authority. That exists between superior
and his subordinates.
The direct relationship between a superior and his subordinates is
created through the enforcement of line relationships .
It includes the right of the manager to issue instructions to his
immediate subordinates, to supervise and coordinate the tasks
assigned to them.
Production Manager in a Manufacturing enterprise.
28. Staff positions serve the organization by
indirectly supporting line functions. Staff
personnel use their technical expertise to assist
line personnel .
e.g. Legal adviser is an example of staff manager
29. Refers to a pattern in which staff specialists advice line
managers to perform their duties .
Line managers requires the services of specialists which
he himself cannot provide.
The staff positions or departments are purely advisory in
nature. Indirectly support the line functions.
They have the right to recommend , but no authority to
enforce their preference on the departments.
30. Secretary Public Relation
General Manager
Officer
Manager-finance Manager-Personnel
Manager- Production
Production - Engineer
Foreman
Workers
Manager- Marketing
Sales Officer
Sales Supervisor
Salesmen
31. e.g The Production Manager in a manufacturing enterprise has line
authority to make decisions on the types volumes of materials needed
for production operations.
Whereas the Purchase Department acts as a staff function by
advising the Production Manager on whom to contact regarding the
same.
32. 1. Poor Human Relations
2. Overlapping authority and responsibility
Line View
1. Dilution and Usurpation of Authority
2. Ivory Tower Theoreticians
3. Steals Credit
Staff View
1. Line does not make proper use of staff
2. Line resists new ideas
3. Line does not give staff enough authority
33. A) Clarity in relationships.
B) Acceptance of staff advice
C) An informed staff
D) Completed staff work ( A careful study of the problem, listing of possible
alternatives and clear recommendations)
34. A Permanent organization designed to achieve specific results by
using teams of specialists from different functional areas in the
organization is a matrix organization.
Maintaining a balance between Technical Expertise and Customer
Requirement.
Breaks the application of the concept Unity Of Command
35. 1. Conflicting Environmental pressures
Maintaining Technical Excellence and also to meet unique customer
requirement.
2. High Information Processing
Are found in organizations which demand responses to rapid change
in markets and technology which face uncertainties that generate
high information processing requirements.
3. The need for better resource use
Matrix form provides an excellent opportunity for extra performers
and possessors of rare skill to contribute to more than one project or
to more than one functional department.
36. The matrix organization is an attempt to combine the advantages of the
pure functional structure and the product organizational structure. This
form is identically suited for companies, such as construction, that are
“project-driven”. The figure below shows a typical Matrix organization.
a matrix organization, each project manager reports directly to the
vice president and the general manager. Since each project represents
a potential profit centre, the power and authority used by the project
manager come directly from the general manager.
37. A matrix organization eliminates this duplication of skills and
responsibilities by identifying functions or common components that are
shared by multiple divisions, projects, or products. An organizational
chart that allocates skills or resources across the sectors or divisional
components as needed portrays the cross-functional nature of this
organizational design. It creates a multi-functional team approach rather
than a group of somewhat redundant functional skill sets.
38. Allow more efficient allocation of specialized skills across the entire business.
By taking advantage of the shared services and skills and not having to
develop and manage those skills themselves, the divisional or product line
organizations can better focus on their core business objectives. This last
point was one of the original driving forces behind the development and
popularization of matrix organizations. Today, matrix organizations are used
to describe more than just the product-based organization shown in these
examples. For example, many IT project managers use smaller matrix-style
structures for project and team organizations to track skills, tasks, and
resources across multiple projects to ensure skills and resources are used
properly
39. FEATURES
1. It is a hybrid structure.
2. In the matrix structure, project managers are assigned a variety of
projects-rather than a single one.
3. The matrix breaks the Unity of command concept.
USAGE
1. INDUSTRIAL PRODUCTS
2. BANKING PRODUCTS
3. ADVERTISING
4. HOSPITALS
40. Board Chairman
PRESIDENT
Cost Centers
Business.
No 1
Business.No 2
Business
No 3
Business
No. 4
Future
Other Services
Mktg Mgr Mfg Mgr T&D Mgr Eval Control
Business
Board
Functional
Professionalism
41. General Manager
Manufacturing Design Marketing
Top Leadership
Products (Outputs)
Outerwear Product
Manager
Managers of Shoe
Manufacture’s Plant
Matrix Bosses
Footwear Product
Manager
Two Boss Manager
Functions (Resources)
Fabrication
Procurement Quality Packaging