PBAM Unit 6
Organizing-Key management process that should be conducted with equal awareness within the internal and external environment of a company
Organizational Structure-specification of the jobs to be done within an organization and the ways in which they relate to one another
specialization-determining who will do what
departmentalization-determining how people performing certain tasks can best be grouped together
Profit center-separate company unit responsible for its own costs and profits
organization charts-specification of the jobs to be done within an organization and the ways in which they relate to one another
Chain of Command- the solid lines in an organizational chart that show reporting relationships within a company
Unstructured companies-tend to be more adaptable to their environments than structured companies
Job Specialization
the process of identifying the specific jobs that need to be done and designating the people who will perform them
helps workers develop expertise in their jobs
Natural part of organizational growth
Employees looking at specialization chart
to find out how their job relates to others they typically will look within their department
this allows workers to look at the people they work with daily
Functional Departmentalization-dividing an organization according to groups’ functions or activities. This is Effective for small/new organizations
Product Departmentalization-dividing an organization according to specific products or services being created. This helps focus on special product lines
Process Departmentalization-dividing an organization according to production processes used to create a good or service
Customer departmentalization-dividing an organization to offer products and meet needs for identifiable customer groups
Geographic Departmentalization-dividing an organization according to 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
Decentralized Organization
organization in which a great deal of decision-making authority is delegated to levels of management at points below the top
Flat organizational structure-characteristic of decentralized companies with relatively few layers of management
Tall organizational structure-characteristic of centralized companies with multiple layers of management
delegation - process through which a manager allocates work to subordinates
.Assigning responsibility - the duty to perform an assigned task
Granting authority - the power to make the decisions necessary to complete the task
Creating accountability - the obligation employees have for the successful completion of the task
Line authority - organizational structure in which 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 - advisers and counselors who help line departments in making decisions but who do not have the authority to make final decisions
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
Functional structure-organization structure in which authority is determined by the relationships between group functions and activities
Divisional structure-organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella
Matrix Structure-organizational structure created by superimposing one form of structure onto another
International Organization structures-approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets
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-only a handful of permanent employees, a very small staff, and a modest administrative facility
Organizing-Key management process that should be conducted with equal awareness within the internal and external environment of a company
Organizational Structure-specification of the jobs to be done within an organization and the ways in which they relate to one another
specialization-determining who will do what
departmentalization-determining how people performing certain tasks can best be grouped together
Profit center-separate company unit responsible for its own costs and profits
organization charts-specification of the jobs to be done within an organization and the ways in which they relate to one another
Chain of Command- the solid lines in an organizational chart that show reporting relationships within a company
Unstructured companies-tend to be more adaptable to their environments than structured companies
Job Specialization
the process of identifying the specific jobs that need to be done and designating the people who will perform them
helps workers develop expertise in their jobs
Natural part of organizational growth
Employees looking at specialization chart
to find out how their job relates to others they typically will look within their department
this allows workers to look at the people they work with daily
Functional Departmentalization-dividing an organization according to groups’ functions or activities. This is Effective for small/new organizations
Product Departmentalization-dividing an organization according to specific products or services being created. This helps focus on special product lines
Process Departmentalization-dividing an organization according to production processes used to create a good or service
Customer departmentalization-dividing an organization to offer products and meet needs for identifiable customer groups
Geographic Departmentalization-dividing an organization according to 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
Decentralized Organization
organization in which a great deal of decision-making authority is delegated to levels of management at points below the top
Flat organizational structure-characteristic of decentralized companies with relatively few layers of management
Tall organizational structure-characteristic of centralized companies with multiple layers of management
delegation - process through which a manager allocates work to subordinates
.Assigning responsibility - the duty to perform an assigned task
Granting authority - the power to make the decisions necessary to complete the task
Creating accountability - the obligation employees have for the successful completion of the task
Line authority - organizational structure in which 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 - advisers and counselors who help line departments in making decisions but who do not have the authority to make final decisions
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
Functional structure-organization structure in which authority is determined by the relationships between group functions and activities
Divisional structure-organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella
Matrix Structure-organizational structure created by superimposing one form of structure onto another
International Organization structures-approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets
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-only a handful of permanent employees, a very small staff, and a modest administrative facility
