Shermerhorn Chapter 8 - Organization Structure and Design Flashcards
(53 cards)
Definition of organization structure
system of tasks, workflows, reporting relationships and communication channels that link together diverse individuals and groups
Definition of organizing
process of arranging people and other resources to work together to accomplish a goal
Aspects of formal structure (5)
- Division of work
- supervisory relationships
- communication channels
- major subunits
- levels of management
Definition of informal structures
unofficial but often critical working relationships between organization members
Advantages of informal structure
- helping people accomplish their work
- Overcoming limits of formal structure
- gaining access to interpersonal networks
- informal learning
Disadvantages of Informal Structure
- may work against best interests of organization
- Susceptibility to rumour
- may carry inaccurate information
- may breed resistance to change
- diversion of work efforts from important objectives
- feeling of alienation by outsiders
Definition of Functional Structure
people with similar skills and similar tasks are grouped together into formal work units
Advantages of 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
Disadvantages of functional structure
- difficulties in pinpointing responsibilities
- functional chimney problem
- lack of cross-functional collaboration
- lack of common purpose
- narrow view of performance objectives
- excessive upward referral of decisions
Definition of Divisional Structures
group together people who work on the same product or process, serve similar customers and are located in same region
Types of divisional structures
product
geographical
customer
process
Advantages of divisional structures
- more flexibility in responding to environmental changes
- improved coordination
- Clear points of responsibility
- expertise focused on specific customers, products and regions
- greater ease in restructuring
Disadvantages of divisional structures
- duplication of resources and efforts across divisions
- competition and poor coordination across divisions
- Emphasis on divisional goals at expense of organizational goals
Definition of Matrix structure
Combines functional and divisional structures
uses of matrix structures
manufacturing service industries professional fields non-profit multi-national corporations
Advantages of Matrix Structure
- Better coordination
- improved decision making
- Increased flexibility
- better customer service
- better performance accountability
- improved strategic management
Disadvantages of Matrix structure
- two boss system
- power struggles
- task confusion and conflict
- time consuming meetings
- groupitis
- increase cost due to adding team leads to structure
Types of Horizontal Structures
Team
Network
Boundary-less
Definition of Team structure
permanent and temporary teams for special projects , sometimes cross-functional
Advantages of Team structure
- no communication and decision making difficulties
- eliminated barriers
- improved morale
- sense of involvement and identification
- enthusiasm
- improved quality and speed of decision making
Disadvantages of Team structure
- Conflicting loyalties Among members
- time consuming meetings
- quality depends on interpersonal relationships, group dynamics, team management
Definition of network structures
central core that is linked through networks of relationships with outside contractors/suppliers
Advantages of network structures
- fewer full-time employees
- less complex internal structure
- reduce overhead costs
- increased operating efficiency
- operations can be across great distances
Disadvantages of Network structures
- control and coordination problems
- potential loss of control over outsourced activities
- lack of loyalty
