module 13 organization structures “it’s all about working together” what is organizing as a...

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MODULE 13 ORGANIZATION STRUCTURES It’s all about working together” • What is organizing as a managerial responsibility? • What are the most common types of organization structures?

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Page 1: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

MODULE 13

ORGANIZATION STRUCTURES

“It’s all about working together”

• What is organizing as a managerial responsibility?

• What are the most common types of organization structures?

Page 2: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Organizing As A Management Responsibility

MODULE GUIDE 13.1

Organizing is one of the management functions.

Organization charts describe the formal structures of organizations.

Organizations also operate with important informal structures.

Informal structures have good points and bad points.

Page 3: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Organizing As A Management Responsibility

Organizing process of arranging people and resources to work

toward a common goal.

Page 4: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Organizing As A Management Responsibility

Structure system of tasks, reporting relationships, and communication that links

people and positions within an organization. Organization Charts

describe the formal structure, how an organization should ideally work.

Page 5: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Organizing As A Management Responsibility

What You Can Learn from an Organization Chart

Division of work - Positions and titles show work responsibilities.

Supervisory relationships - Lines between positions show who reports to whom in the chain of command.

Span of control - The number of persons reporting to a supervisor.

Communication channels - Lines between positions show routes for formal communication flows.

Major subunits - Which job titles are grouped together in work units, departments, or divisions.

Staff positions - Staff specialists that support other positions and parts of the organization.

Levels of management - The number of management layers from top to bottom.

Page 6: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Organizing As A Management Responsibility

Division of LaborPeople and groups performing different jobs

Formal StructureThe official structure of the organization

Informal Structure the unofficial relationships that develop

among an organization’s members.

Page 7: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Organizing As A Management Responsibility

Page 8: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Organization Structures

MODULE GUIDE 13.2

Functional structures group together people using similar skills.

Divisional structures group together people by products, customers, or locations.

Matrix structures combine the functional and divisional structures.

Team structures use many permanent and temporary teams.

Network structures extensively use strategic alliances

Page 9: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Functional Structures

Departmentalization Grouping together people and jobs into one unit

Functional Structures group together people using similar skills to perform similar activities.

Potential Advantages of Functional Structures • Economies of scale make efficient use of human resources. • Functional experts are good at solving technical problems. • Training within functions promotes skill development. • Career paths are available within each function.

Page 10: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Functional Structures

Page 11: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Functional Structures

Functional Chimneys ProblemA lack of communication and coordination

across functional organizations

Page 12: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Divisional Structures

Divisional structures group together people who work on a similar product, work in the same geographical region, or serve the same customers.

Potential Advantages of Divisional Structures •Expertise focused on special products, customers, regions •Better coordination across functions within divisions •Better accountability for product or service delivery •Easier to grow or shrink in size as conditions change

Page 13: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Divisional Structures

Page 14: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Customer & Matrix Structures

Customer StructureGroups together people and jobs that serve

the same customers or clientsMatrix Structure

uses permanent cross functional teams to try to gain the advantages of both the functional and divisional approaches.

Page 15: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Matrix Structures

Potential Advantages of Matrix Structures Performance accountability rests with program, product, or project

managers. Teams enable better communication and cooperation across functions. Teams make more decisions and solve more problems at their levels. Top managers spend more time on strategic issues. A cross-functional team brings together members from different

functional departments.

Page 16: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Team Structures

Team Structures make extensive use of permanent and temporary

teams, often cross functional, to improve communication, cooperation, and problem solving.

Potential Advantages of Team Structures •Team assignments improve communication, cooperation, and decision-making. •Team members get to know each other as persons, not just job titles. •Team memberships boost morale, and increase enthusiasm and task involvement.

Page 17: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Team Structures

Page 18: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Network Structures

Network structures maintain a staff of core fulltime employees and use contracted services and strategic alliances to accomplish many business needs.

Page 19: MODULE 13 ORGANIZATION STRUCTURES “It’s all about working together” What is organizing as a managerial responsibility? What are the most common types of

ORGANIZATION STRUCTURES

Virtual Structures

Virtual Structure Uses information technologies to operate as a

shifting network of alliances.

MANAGEMENT TIPSSeven deadly sins of outsourcing: 1. Outsourcing activities that are part of the core competency2. Outsourcing to untrustworthy vendors 3. Agreeing to unfavorable contracts with the vendor 4. Overlooking impact on existing employees 5. Not maintaining oversight; losing control to vendors 6. Overlooking hidden costs of managing contracts 7. Failing to anticipate need to change vendors or cease outsourcing