Management, 6e Schermerhorn - Get as PowerPoint

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					               Chapter 8
     Organizing - To Create
          Structures
 Planning Ahead
   What is organizing as a management
    function?
   What are the traditional organization
    structures?
   What are the new developments in
    organization structures?
   What organizing trends are changing
    the workplace?
                    Schermerhorn - Chapter 8   1
Organizing as a
Management Function

 What is Organization Structure
   system of tasks, workflow,
    reporting relationships and
    communication channels that link
    together workgroups



                 Schermerhorn - Chapter 8   2
Organizing as a
Management Function
 Formal Structure
    official working
     relationships often
     represented by an
     organizational chart




                     Schermerhorn - Chapter 8   3
Organizing as a
Management Function

 Informal Structure
    unofficial working relationships
    important in understanding organizations
    sometimes work against best interest of
     organizations



                  Schermerhorn - Chapter 8      4
DESIGN OPTIONS
 SIMPLE
    Flat, Wide Spans of
     Control, Centralized
     Decision Making,
     Informal
 BUREAUCRACY
    Tall, Narrow spans of
     control, Highly
     Centralized, Formal
 MATRIX
    Two Bosses
                   Schermerhorn - Chapter 8   5
Traditional Organization
Structures

 Functional
    people performing similar tasks are
     formally grouped together
    workers share technical expertise,
     interests and responsibilities



                  Schermerhorn - Chapter 8   6
Traditional Organization
Structures
 Advantages of Functional Structures
    economies of scale
    task assignments consistent with
     expertise
    high-quality technical problem solving
    in-depth training and skill development
    clear career paths



                     Schermerhorn - Chapter 8   7
Traditional Organization
Structures

 Disadvantage of Functional
  Structures
   functional chimneys problem
      lack of problem solving across
      functions




                   Schermerhorn - Chapter 8   8
Traditional Organization
Structures

 Divisional Structures
   groups together employees who
    work on the same product or
    service in the same geographic
    area




                 Schermerhorn - Chapter 8   9
Traditional Organization
Structures
 Advantages of Divisional
  Structures
   more flexibility
   improved coordination
   clear points of responsibility
   expertise focused on specific
    customers, products and regions
   greater ease in restructuring
                  Schermerhorn - Chapter 8   10
Traditional Organization
Structures
 Disadvantages of Divisional
  Structures
   reduce economies of scale
   increase costs through
    duplication of resources across
    divisions
   create unhealthy rivalries



                 Schermerhorn - Chapter 8   11
Traditional Organization
Structures
 Matrix Structure
   combination of functional and
    divisional structures
   used in
       manufacturing
       service industries
       professional fields
       nonprofit sector


                    Schermerhorn - Chapter 8   12
Traditional Organization
Structures
 Advantages of Matrix Structure
   better inter-functional cooperation
   increased flexibility in restructuring
   better customer services
   better performance accountability
   improved decision making
   improved strategic management




                     Schermerhorn - Chapter 8   13
Traditional Organization
Structures
 Disadvantages of Matrix
  Structures
   two-boss system is susceptible to
    power struggles
   workers may suffer task
    confusion
   focused team loyalties to
    detriment of organization

                 Schermerhorn - Chapter 8   14
DESIGN OPTIONS
   TEAM
      Functional , Cross-
       Functional
   AUTONOMOUS INTERNAL
    UNITS
      You Create it You Run it
   VIRTUAL, NETWORK,
    MODULAR
      Decentralized, Small Core
       that Outsources Major
       Business Functions


                         Schermerhorn - Chapter 8   15
Development in
Organization Structures
 Team Structures
   Extensively use permanent
    and temporary teams to
    solve problems, complete
    special projects, and
    accomplish day-to-day
    tasks.
   Often use cross-functional
    teams.



                   Schermerhorn - Chapter 8   16
Developments in
Organization Structures
 Advantages of Team Structures
   Eliminates barriers between
    operating departments.
   Improved morale due to cross-
    functional interactions.
   Improved quality and speed of
    decision making.
   Increased enthusiasm for work.

                Schermerhorn - Chapter 8   17
Developments in
Organization Structures
 Disadvantages of Team
 Structures
   conflicting loyalties
    among members
   spend a lot of time in
    meetings



                  Schermerhorn - Chapter 8   18
Developments in
Organization Structures
   Boundaryless organizations
     Organizations in which teamwork and
      intense communication take the place
      of formal lines of authority.
     Break down internal boundaries.
     Key requirements:
        Absence of hierarchy
        Empowerment of team members
        Acceptance of impermanence



                       Schermerhorn - Chapter 8   19
Developments in
Organization Structures
 Virtual organization
   A special form of boundaryless
    organization.
   Operates in a shifting network of
    external strategic alliances that
    are engaged as needed, and
    typically supported by extensive
    IT utilization.

                 Schermerhorn - Chapter 8   20
Developments in
Organization Structures

 Organizing Trends in the
  Modern Workplace
   Wider Spans of Control
      chains of command are shortened
      managers have responsibility for
      larger number of subordinates



                   Schermerhorn - Chapter 8   21
Developments in
Organization Structures
 Organizing Trends in the
  Modern Workplace
   Shorter Chains of Command
      organizations are reducing levels
      of management
   Less Unity of Command
      increases in cross-functional
      teams, task forces and horizontal
      structure
                   Schermerhorn - Chapter 8   22
Developments in
Organization Structures
 Organizing Trends in the
  Modern Workplace
   More Delegation and
    Empowerment
      delegation
         assigns responsibility
         grants authority to act
         creates accountability



                     Schermerhorn - Chapter 8   23
Developments in
Organization Structures
 Organizing Trends in the
  Modern Workplace
   More Delegation and
    Empowerment
      empowerment
         freedom to contribute ideas
         increase job satisfaction
         better job performance




                    Schermerhorn - Chapter 8   24
Developments in
Organization Structures
 Organizing Trends in the
  Modern Workplace
   Decentralization with
    Centralization
      empowerment allows for more
       decentralization
      advances in information
       technology allow for retention of
       centralized control

                   Schermerhorn - Chapter 8   25
Developments in
Organization Structures
 Organizing Trends in the Modern
  Workplace
    Reduced use of Staff
       Specialized staff—people who perform a
        technical service or provide special
        problem-solving expertise to other parts
        of the organization.
       Personal staff—people working in
        “assistant-to” positions that provide
        special support to higher-level positions.


                       Schermerhorn - Chapter 8      26
INTO THE TWILIGHT ZONE




             Schermerhorn - Chapter 8   27
NETWORKS
 Goal: Unstructured
  Access
 Looks Like: Managed
  Chaos, Structured
  Permissiveness,
  Interactive Charisma
 Power Source:
  Accessibility

                  Schermerhorn - Chapter 8   28
ATTRIBUTES OF A “WEBS OF INCLUSION”
ORGANIZATION
Sally Helgesen


   Leader at the Center
   Form Patterns Which Constantly Change
   Open Communication Across All Levels
   Blurs Distinction Between Conception and
    Execution
   Create Lasting Networks that
    Redistribute Power
   Embrace the Outside World
   Evolve Through Trial and Error


                      Schermerhorn - Chapter 8   29
Developments in
Organization Structures
 Advantages of Network
 Structures
   operate with fewer full-time
    employees
   reduced overhead
   increased operating efficiency
   work together across great
    distances instead of face-to-face
                  Schermerhorn - Chapter 8   30
Developments in
Organization Structures
 Disadvantages of Network
 Structures
   Coordination of the entire system
    of relationships
   Potential loss of control over
    outsourced activities.
   Potential lack of loyalty among
    infrequently used contractors.

                 Schermerhorn - Chapter 8   31
STRATEGIC ALLIANCES
   TYPES
       Joint Venture
       Takeover/Merger
       Equity Investment
       Research and
        Development Partnership
       Technology Transfer
       Original Equipment
        Manufacturer
       Licensing
       Private Label
       Joint
        Marketing/Distribution


                       Schermerhorn - Chapter 8   32
VIRTUAL PARALLEL
ORGANIZATIONAL STRUCTURES

   CLEARLY
    UNDERSTOOD CORE
    VALUES AND
    PURPOSE
   CREATE PARALLEL
    STRUCTURE LINKED
    TO CORE VALUES
   DEVELOP BOUNDARY
    SPANNING
    PERSONNEL



                 Schermerhorn - Chapter 8   33
     PARALLEL STRUCTURES IN OPERATION




                                                               Flat,
Hierarchical,
Fixed                                               Virtual,   Flexible
Rewards,                                            Parallel   Rewards,
Value                                                          Chaotic
Stability       Traditional
                                Boundary
                                Spanners




                         Schermerhorn - Chapter 8                  34

				
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