- StudyBlue
- California
- San Diego State University
- Marketing And Consumer Studies
- Marketing And Consumer Studies 371
- Mead
- Chapter 15 Organizational Structure
Chapter 15 Organizational Structure
Marketing And Consumer Studies 371 with Mead at San Diego State University
About this deck
By: nick batcheller
Created: 2011-05-16
Size: 29 flashcards
Views: 21
Created: 2011-05-16
Size: 29 flashcards
Views: 21
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Organizational Structure
defines how job tasks are formally divided, grouped, and coordinate
Managers need to address six key elements when designing their organization's structure
- Work Specialization (Divisions of labor)
- departmentalization
- chain of command
- span of control
- centralization and decentralization
- Formalization
Work Specialization (Divisions of Labor)
- Henry Ford
- degree to which activities in the organization are subdivided into separate jobs
- Human dis-economics - boredom. fatigue, stress, low productivity, poor quality
- managers offset by enlarging scope of job activities
Departmentalizatoin
How jobs are grouped
group activities is by functions performed (engineering, Sales, etc.)
group on product or service the organization produces
group activities is by functions performed (engineering, Sales, etc.)
group on product or service the organization produces
- Chain of Command
- Authority
- Unity of Command
- unbroken line of authority that extends from the top to the bottom
- rights inherent in a managerial position to give orders that will be obeyed
- subordinate should have only one superior to whom directly responsible
Span of Control
- the number of subordinates a manager can efficiently direct
- Wider spans are more efficient
- Narrow spans are expensive, vertical communication complex, encourage overly tight supervisors
Centralization
Centralized Organization vs decentralized organization
Centralized Organization vs decentralized organization
- degree to which decisions making is concentrated at a single point of the organization.
- Centralized Org - top managers make all the decisions
- Decentralized Org. - decisions making is pushed down to managers closest to action
- Formalization
- Highly formalized job
- degree to which jobs within the organization are standardized
- employee has minimum discretion over what and how to do it
Common Organizational Designs
- The Simple Structure
- Bureucracy
- matric structrure
The Simple Structure
- not elaborate
- low degree of departmentalization
- wide spans of control
- authority centralized in one person
- little formalization
- two or three vertical levels
- works well for small businesses
Bureaucracy
- Standardization of work processes for coordination and control
- highly routine operating tasks
- very formalized rules and regulations
- tasks grouped into function departments
- narrow spans of control
- chain of command decision making
Pros of Bureaucracy
perform standardized activities highly efficiently
The Matrix Structure
combination of Functional and product departmentalization
combination of Functional and product departmentalization
- Functional - putting like specialists together, minimizes number necessary, major disadvantage is the difficulty of coordinating the tasks of divers functional specialists
- Product departmentalization - opposite positive and negatives
Matrix Structure
- Relation to unity of command
- Strengths
- Weakensses
- breaks unity of command - two bosses functional dept managers and product managers
- ability to facilitate coordination when the organization has a number of complex and interdependente activities
- causes confusion, power struggles, stress on individuals
new design options
- The Virtual Organization
- The Boundaryless Organization
- The leaner Organization: Organization Downsizing
The Virtual Organization
- Also Called
- What is it?
- major advantages
- The network or modular organization
- small, core organization that outsources major business functions
- highly centralized
- little to no departmentalization
- Flexibility
Disadvantages of Virtual organization
- state of perpetual flux and reorganization; roles, goals, and responsibilities unclear
- set stage for political behavior
- cultural alignment and shared goals lost
- limited innovation and slow response time
The Boundaryless organization
- eliminate chain of command; limitless spans of control, replace departments with empowered teams
- management flattens the hierarchy and minimizes status and rank
- The leaner organization
- negative consequences of downsizing
- cut divisions that aren't adding value
- downsizing selling of business units, closing locations, or reducing staff
- those that remain are worried about future layoffs, and less committed to org.
avoid negative consequences of downsizing
preparing in advance_____
preparing in advance_____
- Investment in high involvement work practices afterward.
- Communication - discuss donwsizing with employees early
- Participation - worry less if employees can participate in process
- Assistance - severance, extended health care benefits, job search assistance
Mechanistic model
- Extensive departmentalization, high formalization, limited information network, and centralization
- Synanomous with bureaucracy
- highly standardized process for work
Organic Model
- similar to boundaryless organization
- flat, fewer formal procedures, multiple decision makers, flexible practices
Strategy
Three Strategy Dimensions
Three Strategy Dimensions
- structure should follow strategy
- Innovation Strategy -
- Cost Minimization Strategy
- Imitation Strategy
- Innovative Strategy
- Structure
- strives to achieve meaningful and unique innovations
- Top Pay to attract top candidates
- motivate employees to take risks
- Structure - loose, low specialization, low formalization, decentralized
Cost Minimization Strategy
Structure -
Structure -
- refrain from incurring unnecessary costs
- cuts prices in selling basic product
- fewer policies to develop commitment
- Structure - Tight Control; extensive work specialization; high formalization; high centralization
Imitation Strategy
Structure -
Structure -
- minimize risk
- maximize opportunity for profit
- Structure - mix of loose and tight; tight controls over current activities, loose for new undertakings
Size Effects Organization structure
>2,000 employees = more specialization, more departmentalization, more vertical levels, more rules and regulations
Structure becomes less important after org expands
Structure becomes less important after org expands
Technology Definition
Technology effects on organization structure
Technology effects on organization structure
the way an organization transfers inputs into outputs
degree of routineness - routine = automation, non routine = customization
degree of routineness - routine = automation, non routine = customization
Environment
outside institutions or forces that affet performance
Capacity - degree to which the environment can support growth
Volatility - degree of instability
Complexity - degree of heterogeneity and conentration among envionment elemet
Capacity - degree to which the environment can support growth
Volatility - degree of instability
Complexity - degree of heterogeneity and conentration among envionment elemet
About this deck
By: nick batcheller
Created: 2011-05-16
Size: 29 flashcards
Views: 21
Created: 2011-05-16
Size: 29 flashcards
Views: 21
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have used this website for three exams, and I see a huge difference in my test results.”
Naj
Naj