1 / 16

Chapter 8

Chapter 8. Organizational Structure. Learning Objectives. Explain how an organizational structure may be used by a firm to achieve its strategic plan. Identify methods that can be used to departmentalize tasks. Organizational Structure. Allocation of Employees to Various Job Tasks.

pdupuis
Download Presentation

Chapter 8

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 8 Organizational Structure

  2. Learning Objectives • Explain how an organizational structure may be used by a firm to achieve its strategic plan. • Identify methods that can be used to departmentalize tasks.

  3. Organizational Structure Allocation of Employees to Various Job Tasks Firm's Value Firm's Earnings Organizational Structure Firm’s Expenses

  4. Organizational Chart Board of Directors President CFO VP of Marketing VP of Operations Sales Manager Advertising Organizational Structure Organizational Chart: a diagram showing interaction among employee responsibilities. Chain of Command: identifies the job position to which each type of employee must report.

  5. Board of Directors • Types of Board Members: • Inside board members • Also managers of the firm, such as the CEO. • Outside board members • High-level managers of other firms. Board of Directors: Executives who are responsible for monitoring the activities of the firm’s president and high level managers.

  6. Board of Directors

  7. Elements of Organizational Structure Organizational height Centralization versus decentralization Line versus staff positions Alternative structures Departmentalization

  8. CEO CEO/President President CFO General Manager General Manager General Manager Executive V-P Marketing Manager Finance Manager R& D Manager V-P R& D Vice-President Finance Vice-President Marketing Marketing Director Marketing Manager Marketing Manager Organizational HeightThe number of layers from the top to the bottom of the organization. Tall Organization Short Organization

  9. CEO President CFO Sales Manager Salesperson CEO/President Salesperson 1 Salesperson 2 Salesperson 3 Salesperson 4 Salesperson 5 Span of Control Narrow Span of Control • Management determines the span of control. • If performing similar tasks a wide span of control may be employed. Wide Span of Control

  10. Centralization vs. Decentralization Decentralization: Centralization: • More control. • Only experienced managers make decisions. • Good for a firm with financial problems. • Reduces operating expenses. • Faster decision-making. • Motivates employees.

  11. CEO/President Administrative Assistant Legal Department Vice-President R&D Vice-President Marketing Vice-President Manufacturing Administrative Assistant President CFO VP of Marketing VP of Operations Marketing Manager Marketing Manager Marketing Research Account Manager Sales Manager Assembly Line Supervisor Sales Rep Assembly Line Workers Line positions Staff positions Comparison of Line and Line and Staff Line and Staff Organization Line Organization Line positions: • Make decisions that achieve specific business goals. Simplest form: May be appropriate for businesses that cannot afford to hire support staff positions. Staff positions: • Support the efforts of line positions

  12. Structures that AllowMore Employee Input • Matrix organization • Intrapreneurship

  13. Matrix Organization Interaction among various parts of the firm to focus on specific projects. Advantages: • Variety of skills and talent. • Participation in decision-making. • Greater employee satisfaction. Disadvantages: • Potential lack of accountability. • Time used to participate in projects reduces time for normal tasks. • Employees have two bosses.

  14. Intrapreneurship Employees are assigned to create ideas as if they were entrepreneurs. Advantage: • Innovative thinking occurs. Disadvantage: • Pulls employees away from normal duties.

  15. Informal Organizational Structure Informal communications network among a firm’s employees. Advantages: • Employees learn from peers. • Reduces managerial involvement. Disadvantages: • Employees obtain incorrect or unfavorable information. • Incorrect information can adversely impact employee morale.

  16. Departmentalization Departmentalization: the creation of departments which will handle assigned tasks. Organizations can departmentalize: • By function • By product • By location • By customer

More Related