Chapters 10-12 Flashcards
(42 cards)
What is organization structure?
The system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups
What is organizing?
The process of arranging people an other resources to work together to accomplish a goal
What is a formal structure?
The structure of organization in its original state
What is an organization chart?
A diagram describing reporting relationships and the formal arrangement of work positions within an organization
Which aspects of formal structure does an organization chart identify?
- The division of work
- Supervisory relationships
- Communication channels
- Major subunits
- Levels of management
What is an informal structure?
A ‘shadow’ organization made up of the unofficial, but often critical, working relationships between organization members
What are potential advantages of informal structures?
- Helping people accomplish their work
- Overcoming limits of formal structures
- Gaining access to interpersonal networks
- Informal learning
What are some potential disadvantages of informal structures?
- May work against best interest of the organization
- Susceptibility to rumors
- May carry inaccurate information
- May breed resistance to change
- Diversion of effort from important objectives
- Feeling of alienation by outsiders
What is a functional structure?
People with similar skills and performing similar tasks are grouped together in formal work units
Functional structures work well for…
small organizations producing few products or services.
What are some potential advantages of a functional structure?
- ECONOMIES OF SCALE
- Task assignments consistent with expertise and training
- High-quality technical problem solving
- In-depth training and skill development
- Clear career paths within functions
What are some potential disadvantages of a functional structure?
- Difficulties in pinpointing responsibilities
- FUNCTIONAL CHIMNEY PROBLEM
- Sense of cooperation and common purpose break down
- Narrow view of performance objectives
- Excessive upward referral of decisions
What is a divisional structure?
People who work on the same product, serve similar structures, and located in the same area
Divisional structures are common in…
complex organizations
What are some advantages to divisional structures?
- Flexibility in responding to environmental changes
- Coordination
- Responsibility
- Greater ease in restructuring
- Focus on specific aspects
What are some disadvantages to divisional structures?
- Duplication of resources
- Competition and poor coordination across divisions
- Emphasis on divisional goals at expense of organizational goals
What are the types of divisional structures?
- Product structures
- Geographical structures
- Customer structure
- Process structure
What does a product structure do? (Divisional structure)
Focus on a single product or service
What does a geographical structure do? (Divisional structure)
Focus on the same location or geographical region
What does a customer structure do? (Divisional structure)
Focus on the same customers or clients
What does a process structure do? (Divisional structure)
Focus on the same processes
What does a Matrix Structure do?
Combines functional and divisional structures to gain advantages and minimize disadvantages.
When are Matrix Structures used?
- Manufacturing
- Service industries
- Professional fields
- Non-profit sector
What are some guidelines for horizontal structures?
- Focus on processes not functions
- Put people in charge of core processes
- Decrease hierarchy,increase teams
- Empower people to make critical performance decisions
- Utilize information technology
- Emphasize diverse skills
- Teach people how to work in partners
- Build a culture of openness, collaboration, and performance commintment
