Organization structure
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This document discusses different types of organization structures including functional, divisional, matrix, and network structures. It provides details on key aspects of organizing like organization charts, authority, delegation, and coordination. Specific advantages are outlined for functional and divisional organizations with specialized activities and product lines respectively. Coordination through standardization and formalization is also covered.
Organization structure
- 1. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. OrganizationOrganization StructureStructure Chapter EightChapter Eight
- 2. Fundamentals of OrganizingFundamentals of Organizing Organization chart The reporting structure and division of labor in an organization 8-2
- 3. Conventional Organization ChartConventional Organization Chart 8-3 Figure 8.1
- 4. Authority in OrganizationsAuthority in Organizations Authority The legitimate right to make decisions and to tell other people what to do. 8-4
- 5. DelegationDelegation Delegation The assignment of new or additional responsibilities to a subordinate Responsibility, Authority, and Accountability 8-5
- 6. Steps in Effective DelegationSteps in Effective Delegation 8-6 Figure 8.2
- 7. The Functional OrganizationThe Functional Organization Functional organization Departmentalization around specialized activities such as production, marketing, and human resources. 8-7
- 8. The Functional OrganizationThe Functional Organization 8-8 Figure 8.3
- 9. Advantages of Functional OrganizationsAdvantages of Functional Organizations 1. Economies of scale can be realized 2. Effective monitoring of the environment 3. Performance standards better maintained 4. Greater opportunity for specialized training and skill development 5. Technical specialists are relatively free of administrative work 6. Decision making and lines of communication are simple and clearly understood 8-9
- 10. Advantages of Divisional OrganizationsAdvantages of Divisional Organizations 1. Information needs are managed more easily 2. People have a full-time commitment to a particular product line 3. Task responsibilities are clear 4. People receive broader training 8-10
- 11. The Divisional OrganizationThe Divisional Organization 8-11 Figure 8.4
- 12. Matrix Organizational StructureMatrix Organizational Structure 8-12 Figure 8.5
- 13. The Network OrganizationThe Network Organization 8-13Figure 8.7
- 14. Coordination by StandardizationCoordination by Standardization Standardization Establishing common routines and procedures that apply uniformly to everyone. Formalization The presence of rules and regulations governing how people in the organization interact. 8-14
- 15. Managing High Information-Managing High Information- Processing DemandsProcessing Demands 8-15 Figure 8.8