MODULE 13 ORGANIZATION STRUCTURES

1. MODULE 13ORGANIZATION STRUCTURES “It’s all about working together” • What is organizing as a managerial responsibility? • What are the most common types of organization structures?

2. ORGANIZATION STRUCTURESOrganizing As A Management ResponsibilityMODULE GUIDE 13.1 • Organizing is one of the management functions. • Organization charts describe the formal structures of organizations. • Organizations also operate with important informal structures. • Informal structures have good points and bad points.

3. ORGANIZATION STRUCTURESOrganizing As A Management Responsibility • Organizing • process of arranging people and resources to work toward a common goal.

4. ORGANIZATION STRUCTURESOrganizing As A Management Responsibility • Structure • system of tasks, reporting relationships, and communication that links people and positions within an organization. • Organization Charts • describe the formal structure, how an organization should ideally work.

5. ORGANIZATION STRUCTURESOrganizing As A Management Responsibility • What You Can Learn from an Organization Chart • Division of work - Positions and titles show work responsibilities. • Supervisory relationships - Lines between positions show who reports to whom in the chain of command. • Span of control - The number of persons reporting to a supervisor. • Communication channels - Lines between positions show routes for formal communication flows. • Major subunits - Which job titles are grouped together in work units, departments, or divisions. • Staff positions - Staff specialists that support other positions and parts of the organization. • Levels of management - The number of management layers from top to bottom.

6. ORGANIZATION STRUCTURESOrganizing As A Management Responsibility • Division of Labor • People and groups performing different jobs • Formal Structure • The official structure of the organization • Informal Structure • the unofficial relationships that develop among an organization’s members.

7. ORGANIZATION STRUCTURESOrganizing As A Management Responsibility

8. ORGANIZATION STRUCTURESOrganization StructuresMODULE GUIDE 13.2 • Functional structures group together people using similar skills. • Divisional structures group together people by products, customers, or locations. • Matrix structures combine the functional and divisional structures. • Team structures use many permanent and temporary teams. • Network structures extensively use strategic alliances

9. ORGANIZATION STRUCTURESFunctional Structures • Departmentalization • Grouping together people and jobs into one unit • Functional Structures • group together people using similar skills to perform similar activities. • Potential Advantages of Functional Structures • Economies of scale make efficient use of human resources. • Functional experts are good at solving technical problems. • Training within functions promotes skill development. • Career paths are available within each function.

10. ORGANIZATION STRUCTURESFunctional Structures

11. ORGANIZATION STRUCTURESFunctional Structures • Functional Chimneys Problem • A lack of communication and coordination across functional organizations

12. ORGANIZATION STRUCTURESDivisional Structures • Divisional structures group together people who work on a similar product, work in the same geographical region, or serve the same customers. • Potential Advantages of Divisional Structures • Expertise focused on special products, customers, • regions • Better coordination across functions within divisions • Better accountability for product or service delivery • Easier to grow or shrink in size as conditions change

13. ORGANIZATION STRUCTURESDivisional Structures

14. ORGANIZATION STRUCTURESCustomer & Matrix Structures • Customer Structure • Groups together people and jobs that serve the same customers or clients • Matrix Structure • uses permanent cross functional teams to try to gain the advantages of both the functional and divisional approaches.

15. ORGANIZATION STRUCTURESMatrix Structures Potential Advantages of Matrix Structures • Performance accountability rests with program, product, or project managers. • Teams enable better communication and cooperation across functions. • Teams make more decisions and solve more problems at their levels. • Top managers spend more time on strategic issues. • A cross-functional team brings together members from different functional departments.

16. ORGANIZATION STRUCTURESTeam Structures • Team Structures • make extensive use of permanent and temporary teams, often cross functional, to improve communication, cooperation, and problem solving. • Potential Advantages of Team Structures • Team assignments improve communication, cooperation, and • decision-making. • Team members get to know each other as persons, not just job • titles. • Team memberships boost morale, and increase enthusiasm and • task involvement.

17. ORGANIZATION STRUCTURESTeam Structures

18. ORGANIZATION STRUCTURESNetwork Structures • Network structures maintain a staff of core fulltime employees and use contracted services and strategic alliances to accomplish many business needs.

19. ORGANIZATION STRUCTURESVirtual Structures • Virtual Structure • Uses information technologies to operate as a shifting network of alliances. • MANAGEMENT TIPS • Seven deadly sins of outsourcing: • Outsourcing activities that are part of the core competency • 2. Outsourcing to untrustworthy vendors • 3. Agreeing to unfavorable contracts with the vendor • 4. Overlooking impact on existing employees • 5. Not maintaining oversight; losing control to vendors • 6. Overlooking hidden costs of managing contracts • 7. Failing to anticipate need to change vendors or cease outsourcing