Management and Organization Behavior

1. Management and Organization Behavior MGMT 3140 Organization Structure

2. Organization Charts • The pyramid • Tells who reports to whom • Explains the organization’s differentiation

3. Differentiation • Per our first discussion on wagons, blankets and houses… • Division of labor / job specialization

4. Differentiation • Vertical – authority • Horizontal – functioning/specializing • Integration – communication and control

5. Leadership • The Board of Directors • Chairman of the Board • CEO • Corporate governance • Insiders vs. outsiders

7. Hierarchy of Authority • Authority: The power that enables a person in a higher position to hold a person in a lower position accountable for his or her actions. Carries with it the • Responsibility (accountability) for using organizational 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; flat organizations have few.

8. A Wide Span of Control

9. A Narrow Span of Control

10. Insert Figure 15.7 here

11. Delegation • Manager A pg 283 • Manager B

12. Managers--- • “Passing the buck” • Pass on the praise and accept the blame --T. A. Sgritta • Product managers – role in business

13. Management • Results-oriented organization • Clockless schedule • Employees responsible for their productivity

14. Management • Delegation • Advantages: • OJT for long haul • Closer to the action • Motivation • Acceptance • Monkey off of the manager’s back • Disadvantages • Time in the short run

15. Delegation / Decentralization • Goals (metrics) • Specific person (or group) • Mutual adjustment • Tools (resources and power) • Review and feedback (and suggestions) • Plan and actual • Some tasks can’t be delegated

16. Horizontal Structure • Line vs. Staff • Form of structure

17. 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.

18. 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

19. Insert Figure 15.3 here

20. Divisional Structures Advantages • Information needs are managed easily • Full time commitment to area (product, etc.) • Task is clear • Broad exposure and training

21. The Divisional Structure Possible disadvantages • Increased costs • Duplication of functions • Miscommunication across divisions • Competition for resources

22. Insert Figure 15.4 here Note: only include part A

23. Insert Figure 15.4 here Note: only include part B

24. Insert Figure 15.4 here Note: only include part C

25. The Matrix Structure • Complex network of reporting relationships among product teams and functions • People and resources grouped by • Function • Product

26. A Matrix Structure

27. Network Structure • Also called dynamic, network, modular or virtual organizations • Tied together with contracts (outsourced)

28. Integration • Standardization • Formalization • Planning • Mutual adjustment

29. Mutual Adjustment • Direct contact • Liaison • Task forces • Teams • Product managers • Matrix organizations

30. Using a Team to Increase Coordination

31. Bureaucracy and Beyond • Mechanistic structures • Organic structures • Independent divisions • Conglomerates