Preview

chapter 7 Designing Organizational structure

Powerful Essays
Open Document
Open Document
11069 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
chapter 7 Designing Organizational structure
Chapter 07 - Designing Organizational Structure

Chapter 07
Designing Organizational Structure
CHAPTER CONTENTS
Learning Objectives
Key Definitions/Terms
Chapter Overview
Lecture Outline
Management in Action
Building Management Skills
Small Group Breakout Exercise
Be the Manager
Case in the News

1

Chapter 07 - Designing Organizational Structure

LEARNING OBJECTIVES

LO 7-1. Identify the factors that influence managers’ choice of an organizational structure.

LO 7-2. Explain how managers group tasks into jobs that are motivating and satisfying for employees.

LO 7-3. Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

LO 7-4. Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms. KEY DEFINITIONS/TERMS authority: The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources. boundaryless organization: an organization whose members are linked by computers, faxes, computer-aided design systems, and video teleconferencing and who rarely, if ever, see one another face-to-face. business-to-business (B2B) network: a group of organizations that join together and use IT to link themselves to potential global suppliers to increase efficiency and effectiveness. cross-functional team: A group of managers brought together from different departments to perform organizational tasks. decentralizing authority: Giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources.

2

divisional structure: An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer. functional structure: An organizational structure composed of all the

You May Also Find These Documents Helpful

  • Satisfactory Essays

    MGT 521 Week 3

    • 1617 Words
    • 15 Pages

    Week 3 Knowledge Check Concepts Mastery Score: 21/21 Questions Six key elements in determining organizational structure 100% 1 2 3 Mechanistic and Organic Structures 100% 4 5 6 Types of Contemporary Organizational Designs 100% 7 8 9 Types of Internal and External Collaboration 100% 10 11 12 Stages of Group Development 100% 13 14 15 Five Conflict Management Techniques 100% 16 17 18 Six Aspects of Group Structure 100% 19 20 21 Concept: Six key elements in determining organizational structure Concepts Mastery Six key elements in determining organizational structure 100% Questions 1 2 3 1. The process of dividing work activities into separate job tasks is known as ________. A. work specialization B. differentiation C. chain of command D. span of control…

    • 1617 Words
    • 15 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mgmt 3610 Week 1 Summary

    • 466 Words
    • 2 Pages

    Organizational structure, which is defined by Daft and Marcic as “the set of formal tasks assigned to individuals and departments; formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers’ control; and the design…

    • 466 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    An organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization such as Barnes and Noble, decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure.…

    • 1089 Words
    • 5 Pages
    Better Essays
  • Good Essays

    The organizational design depends on the objectives and strategy of the organization. In a centralized structure the top layer of management has most of the decision- making power and has tight control over departments and divisions. In a decentralized structure the decision making power is distributed and the departments and divisions may have a different degree of independence (BusinessDictionary, 2013). In an organization there should be a common vision and set of values. Employees should be striving to for fill the organization’s vision (Liebler, 2013). The organization has policies and procedures in place to for fill the organization…

    • 825 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Organizational Structure

    • 1489 Words
    • 6 Pages

    Altogether, there are about eight organizational structure types. Each company has to find a way of putting these “pieces of the puzzle” into one well thought-out outline to represent the necessary relationships. In this case, we’ll be looking at the divisional structure. According to the text, “as organizations grow and become increasingly diversified, they find that functional departments have difficulty managing a wide variety of products, customers, and geographic regions. In this case, organizations may restructure to group all functions into a single division and duplicate each of the functions across all the divisions (Bateman and Snell 8th edition, 2009).”…

    • 1489 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Secondly, is the span of control which refers to the number of employees who are executives, managers, and supervisors. For example, a radiology manager may have many as seven (7) supervisors reporting to him/her. Thirdly, businesses structure their companies around many departments by product, function or customers. Lastly, but not least hybrid or matrix structures are combined. For example, with the introduction of a new product, a temporary team may be put in…

    • 491 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Irhr1001 Essay 2

    • 2037 Words
    • 9 Pages

    An organisational structure accurately divides, selects groups and coordinates job tasks. Structure contributes to explain and predict organisational behaviour and organisational design. Managers often change organisational structures due to performance and efficiency being low (Robbins et al 2004), they should also ensure consistency in the structure, scale of operations, tasks at hand, need of stakeholders and strategic decision of the organisation, this distinguishes successful organisation from less successful organisations (Wood et al 2006). When changing the structure of the organisation managers should be aware of the six elements of structure: work specialisation is how tasks are subdivided into separate jobs; for example Ford workers had an assigned specific repetitive job such as installing the right front door of the car. This helped Ford to produce a car every ten seconds. Departmentalisation, groups jobs together in an organisation; such as marketing, human resources and accounting for instance Football organisations, Sydney Swans. Chain of command specifies who reports to whom (supervisor or store manager) and how (electronically or by speech). Span of control determines the amount of staff a manager can direct however it also identifies the amount of levels and managers the organisation will need. Centralisation and decentralisation aid in the decision…

    • 2037 Words
    • 9 Pages
    Better Essays
  • Better Essays

    Organizational structure is described as the establishment of authority and the arrangement of the work group. Classical theorists developed the concept of departmentalization as a means to maintain command, reinforce authority, and provide a formal system for communication (Sullivan & Decker, 2009). The design of an organizational structure can be vertical or horizontal. Work is subsequently divided, and perhaps subdivided further. Tasks are specified and assigned to workers who fit into a plan.…

    • 1256 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    An organization’s structure influences the flow of information throughout the firm and determines who reports to whom. In some firms, decision-making powers are concentrated at the upper echelons of the organization, whereas in others, this role is distributed among various management levels in the organization. A lateral organization a structure embraces decentralization whereby various departments work together in order to achieve common organizational goals (Hall, 1972).…

    • 613 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    organization structure

    • 559 Words
    • 2 Pages

    Gibson, P. (2012). Customer Retention. In P. Gibson, World of Customer Service (p. 118). Mason, OH: Cengage Learning.…

    • 559 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Noe, Hollenbeck, Gerhart, & Wright, (2014). Fundamentals of Human Resource Management. (5th ed., p. 107). New York, NY: McGraw-Hill Education.…

    • 1622 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    9. Go online tohttp://www.referenceforbusiness.com/management/Ob-Or/Organizational-Structure.html#b and explain what you found as it relates to the principles in this Module.…

    • 1267 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Organizational Structure

    • 1082 Words
    • 5 Pages

    An individual and teamwork within an organization refers to the organizational structure. Organizational structure can also identify the positions in a company and define the individual job role. Individual work needs to be in line and managed to accomplish organizational goals. Structure is an important tool in achieving organization, for it breaks down relationship between the employer and employee and open communication channel. The Home…

    • 1082 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Organizational Structure

    • 1058 Words
    • 5 Pages

    The Army and the organizational structure that makes it run on the surface is a simple one. It is a Hierarchal/ Chain of Command structure, the orders come from levels so far above those of us at my level that we receive them in the form of Fragmented Orders (FRAGOS), Warning Orders (WARNOS), Military Personnel Messages (MILPER Messages) or simple word of mouth from the First Sergeant or my Platoon Sergeant. These are the only two levels above me in a company. Outside of the company, there is only one additional rank other than that, and that is the Sergeant Major and he is the one that passes the information to the First Sergeant. From there, the messages or orders are passed down from me to my employees, or Sergeants and they handle the Soldiers in our ranks. If you look above the “inner circle” of a Battalion, then you start looking at “Big Army” or the Department of the Army and then eventually Department of the Defense and those decisions are ones that we have no control over (Walcott, C. E., Warshaw, S. A., & Wayne, S. J. 2001). We simply get the order, and execute, the movement of the order is a horizontal and vertical move of the order to ranks. This is the natural order of things and the problems occurs when a subordinate bypasses someone in the Chain of Command and goes directly to a member in the Chain of Command directly, and this can be either way horizontally, because then you start losing track of what that member of the team is doing, or what their level of knowledge of the plan is. (Tanguay, 2006)…

    • 1058 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Organizational Structure

    • 1361 Words
    • 6 Pages

    In this case study Roger Cahill has been acting as the head of mobile division for less than a year. Currently he is struggling as he faces great difficulties adapting BoldFlash to a changing marketplace. The problem really started a year ago when Mr. Jim Harrison appointed the young Roger Cahill to a VP position. Although Roger has led a research project in his previous work, he is only 24 years old and inexperienced to manage a company at VP level. Positions at those levels require years of strategic leadership and management skills. Nevertheless in the last 12 months, the company focused primarily on the redundant production of customized chips without further research or product development in new and upcoming areas like the storage device. This negligence from both product development and marketing is a huge loss to the company as they missed out on the opportunity to launch new product line; therefore missed the opportunity to penetrate the potential market. Now the company has old products not priced competitively and struggling to penetrate the marketshare. Also the four groups within the division, product development, marketing, sales and manufacturing are constantly in conflict and don’t have the reinforcement from the leadership to work as a team. Although Cahill has observed the dysfunctions, he has not implemented any processes or trainings to work as a cross functional team. The company’s profit margins are low and Cahill has to take initiatives to suggest number of changes. With the staff that has low morale and lacking motivation, Cahill has to develop action plan for improvement. He has to define roles and propose organization change design to deliver an outcome necessary to be successful and generate higher profits.…

    • 1361 Words
    • 6 Pages
    Powerful Essays

Related Topics