Chapter 6 M&M Test

Organizational Structure

specification of the jobs to be done within an organization and the ways in which they relate to one another

Organizational Chart

diagram depicting a company's structure and showing employees where they fit into its operations

Chain of Commands

reporting relationships within a company

Figure 6.1 (contemporary Landscape Services)

Determinants of Organizational Structure

1. Mission

2. Strategy

3. Size

4. Internal environment

5. External environment

Departmentalization

(part 1) determining how people performing certain tasks can best be grouped together

(part 2)

- process of grouping jobs into logical units

- product, process, functional, customer, geographic

Specialization

determining who will do what

Job Specialization

the process of identifying the specific jobs that need to be done and designating the people who will perform them

Profit Center

separate company unit responsible for its own costs and profits

Departmentalization categories

1) Functional

2) Product

3) Process

4) Customer

5) Geographic

Functional

groups' functions or activities

Product

specific products or services being created

Process

production process used to create a good or service

Customer

to offer products and meet needs for identifiable customer groups

Geographic

the areas of the country or the world served by a business

Establishment of a Decision-Making Hierarchy

deciding who will be empowered to make which decisions and who will have authority over others

Centralized Organization

organization in which most decision-making authority is held by upper-level management

Decentralized Organization

organization in which a great deal of decision-making authority is delegated to levels of management at points below the top

Advantages of Centralization

-Rapid decision making due to a fixed set of rules

-consistent policies avoid confusion

-decisions based on the whole business not just one division

Advantages of decentralization

-Quicker decision-making in response to local changes

-Junior managers can develop skills

-Delegation and empowerment

Flat Organizational Structure

characteristic of decentralized companies with relatively few layers of management

Tall Organizational Structure

characteristics of centralized companies with multiple layers of management

Span of Control

- the distribution of authority on an organization also affects the number of people who work for an individual manager

-number of people supervised by one manager

Learning to Delegate Effectively (graph)

Basic Forms of Organizational Structure

1) functional

2) divisional

3) matrix

4) international

Functional Structure

authority is determined by the relationship between group functions and activities

Figure 6.5 Functional Structures

Divisional Structure

corporate divisions operate as autonomous businesses under the larger corporate umbrella (ex. apple breaking into iphone, watch, airpod, ect.. units)

Matrix Structure

Created by superimposing one structure onto another

- In some companies, it is a temporary measure installed to complete a specific project and affects only one part of the firm

International Organizational Structure

Respond to the need to manafacture, purchase, and sell in global markets

New forms of Organizational Structures

- Team Organization

- Learning Organization

- Virtual Organization

Team Organization

relies almost exclusively on project-type teams, with little or no underlying functional hierarchy

Learning Organization

works to facilitate the lifelong learning and personal development of all of its employees while continually transforming itself to respond to changing demands and needs

Virtual Organization

- little or no formal structure

- only a handful of permanent employees, a small staff, family-like

Delegation

passing authority down the organizational hierarchy

The Delegation Process

1. assigning responsibility

2. granting authority

3. creating accountability

Assigning Responsibility

the duty to perform an assigned task

Granting Authority

power to make the decisions necessary to complete the task

Creating Accountability

obligation of an individual to account for his or her activities and to disclose results in a transparent way

Figure 6.8 International Division

Forms of Authority

- Line Authority

- Staff Authority

- Committee and Team Authority

Line Authority

where authority flows in a direct chain of command from the top of the company to the bottom

Staff Authority

authority based on expertise that usually involves counseling and advising line managers

Staff Members

counselors and advisers who help line departments in making decisions but who do not have the authority to make final decisions

Figure 6.4 (Line - Solid) (Staff - Dotted)

no picture idk where it went

Committee and Team Authority

authority granted to committees or teams involved in a firm's daily operations

Work team

group of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision

Figure 6.9 (The Virtual Organization)

no picture either sorry

Informal Organization

network, unrelated to the firm's formal authority structure, of everyday social interactions among company employees

Informal groups

groups of people who decide to interact among themselves

Grapevine

informal communication network that runs through an organization

Intrapreneuring

process of creating and maintaining the innovation and flexibility of a small-business environment within the confines of a large organization

Intrapreneurial Roles

Inventor

Product Champion

Sponsor

Inventor

person who actually conceives of and develops the new product idea or service by means of the creative process

Product Champion

middle manager who learns about the project and becomes committed to it, overcomes organizational resistance, and convinces others to take the innovation

seriously

Sponsor

Top level manager who approves of and supports the project