group 10 Flashcards
(34 cards)
types or organizational structure
- functional organization
- product or market organization
- matrix organization
refers to the organization of a company by divisions (involving a certain product or customer).
Product or Market organization
a form of departmentalization in which everyone is engaged in one functional activity (group into one unit).
Functional organization
an organizational structure in which each employee reports to both a functional or decision manager and to a project or group manager.
Matrix organization
Functional organization structures are very effective in __________, especially __________, where key activities revolve around well-defined skilss and areas of specialization.
- smaller firms
- single-business firms
functional organization structure
general manager ~> project manager ~> employee
Adavantages of Functional organization
- Enhances efficiency and optimizes resource utilization.
- Centralized Decision-Making,
- Excellent communication and coordination5.ong employees.
- Promotes high-quality technical problem-solving.
- The organization is provided with in depth skill specialization and development.
- Employees are provided with career progress within functional departments
Disadavantages of Functional organization
- Poor communication and coordination between
departments. - Decision involving more than one department pile up.
- Work specialization and division of labor are nonmotivating employee tasks.
- Accountability Issues
- Narrow organizational perspective
- Limited general knowledge
The product or market organization with its feature of operating by divisions, is “appropriate for a _______ with many product lines in several related industries.”
large corporation
Advantages of product/market organization
- Organization is flexible and responsive to change.
- Provides a high concern for customer’s needs.
- Provides excellent coordination across functional departments.
- Easy pinpointing of responsibility for product problems.
- There is an emphasis on overall product and division goals.
- Provides an opportunity for the development of general management skills.
Disadvantages of product/market organization
- High possibility of duplication of resources across divisions.
- Less technical depth and specialization in divisions.
- Poor coordination across divisions,
- Less top management control.
- Competition for corporate resources.
They defined that matrix organization “is a structure with two (or more) channels of command, two lines of budget authority, and two sources of performance and reward.”
Thompson and Strickland
_________ declared that “the matrix structure was
designed to keep employees in a central pool and
allocate them to various projects in the firm according to the length of time they were needed.”
Higgins
Advantages of Matrix Organization
- More efficient use of resources than the divisional
structure. - Flexibility and adaptability to changing environment.
- Development of both general and functional management skills are present.
- Interdisciplinary cooperation and any expertise is available to all divisions.
- Enlarged tasks for employees which motivate
them better.
disadvantages of matrix organization
- Frustration and confusion from dual chain of command.
- High conflict between divisional and functional
interests. - Many meetings and more discussion than action.
- A need for human relations training for key employees and managers.
- A tendency for power dominance by one side of the matrix.
types of authority
- Line authority
- Staff authority
- Functional authority
a specialist’s right to oversee lower level personnel involved in that specialty, regardless of where the personnel are in the organization.
Functional authority
a manager’s right to tell subordinates what to do and then see that they do it.
Line authority
a staff specialist’s right to give advice to a superior.
Staff authority
______________ perform tasks that reflect the
organization’s primary goal and mission. In a
construction firm, it is the department that negotiates and secures contracts for the firm.
Line departments
It is also a line function.
construction division
department that include all those that provide specialized skills in support of line departments.
Staff departments
Example of staff departments
Examples of staff departments include those which perform strategic planning, labor relations, research, accounting, and personnel.
Staff officers may be classified into 2
- Personal staff
- Specialized staff