MGT 08 Org Structures

8/8/2019 MGT 08 Org Structures

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Management and OrganizationManagement and Organization

BehaviorBehavior

Organization

Structure


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Differentiation

Vertical authority

Horizontal functioning/specializing

Integration communication and control


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Leadership

The board of directors

Chairman of the board

CEO

Corporate governance


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Ex. VPFinance Ex. VPHR Ex. VPPlanning Legal Council

Div. GM1 DivGM2 Div. GM3

Group Pres. A Group Pres. B

Chief ExecutiveOfficer

Board ofDirectors


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A Wide Span of Control


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A Narrow Span of Control


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Insert Figure 15.7 here


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Hierarchy of Authority

Authority: The power that enables aperson in a higher position to hold aperson in a lower position accountable forhis or her actions. Carries with it theresponsibility(accountability) for usingorganizational resources effectively.

Span of control: The number of

subordinates who report to a manager.Tall organizations have many levels in

the hierarchy relative to their size; flatorganizations have few.


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Management

Delegation

Advantages:

OJT for long haul

Closer to the action

Motivation

Acceptance

Monkey off of the managers back Disadvantages

Time in the short run


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Horizontal Structure

Line vs. Staff

Form of structure


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Functional Structure

An organizational structure that groups

together people who hold similar

positions, perform a similar set of tasks,or use the same kinds of skills.


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Functional Structure

Economies of scale

Monitoring the field

Performance standards

Specialized training/skills

Focused on one area (limited misc. work)

Line of communication is simple

Promotional/career opportunities are clear

Easiest to set-up


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Divisional Structures

Advantages

Information needs are managed easily

Full time commitment to area (product,etc.)

Task is clear

Broad exposure and training


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The Divisional Structure

Possible disadvantages

Increased costs

Duplication of functions

Miscommunication across divisions

Competition for resources


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Note: only include part A


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Note: only include part B


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Note: only include part C


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The Matrix Structure

Complex network of reporting

relationships among product teams and

functions

People and resources grouped by

Function

Product


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A Matrix Structure


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Network Structure

Also called dynamic, network, modular or

virtual organizations

Tied together with contracts (outsourced)


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Integration

Standardization

Formalization

Planning

Mutual adjustment


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Mutual Adjustment

Direct contact

Liaison

Task forces

Teams

Product managers

Matrix organizations


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Using a Team to Increase Coordination


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Bureaucracy and Beyond

Mechanistic structures

Organic structures

Independent divisions

Conglomerates

MGT 08 Org Structures

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