Chapter 10–designing adaptive organizations

Organizing–is the to deployment of organizational resources to achieve strategic goals. The deployment of resources is reflected in the organizations division of labor into Pacific department send jobs, formalizing authority, and mechanisms for coordinating diverse organization tasks.
Organizing the vertical structure
1. Organization structure–designs how tasks are divided and resources deployed.
  1. Defined as 1: the set of formal tasks assigned to individuals and departments, 2: formal reporting relationships, including lines of authority, design responsibility, number of hierarchical levels, and span of managers control: and 3 the design of systems to ensure an effective coordination of employees across departments.
    1. Organization chart: the visual representation of an organization's structure.
2. Work specialization
  1. the degree to which organizational tasks are subdivided into separate jobs.
3. Chain of Command
  1. is an unbroken line of authority that links all employees in an organization and shows who reports to whom.
    1. Unity of command: means that each employee is held accountable to only one supervisor.
    2. scalar principle: refers to a clearly defined a line of authority and the organization that includes all employees.
  2. authority, responsibility, and delegation
    1. authority- is the formal and legitimate right of the manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.
      1. 1. Authority is vested in organizational positions, not people.
        2. authority flows down the vertical hierarchy.
        3. Authority is accepted by subordinates.
    2. Responsibility–is the duty to perform the task or activity as assigned.
      1. Accountability–means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those opposed to the chain of command.
    3. Delegation-the process managers use to transfer authority and responsibility to positions below them in the hierarchy.
  3. Line and staff authority
    1. Line departments-people in management positions have formal Authority to direct and control immediate sub ordinates
    2. Staff departments–include all those that provide specialized skills and support of line departments.
    3. Line authority–means that people in management positions have formal Authority to direct and control immediate subordinates.
    4. Staff authority–is narrower and includes the right to advise, recommend, and counsel in the staff specialist area of expertise.
Span of management: the number of employees reporting to a supervisor. Sometimes called the span of control, this characteristic of structure determines how closely a supervisor can monitor subordinates.
1. The following list describes the factors that are associated with less supervisor involved and thus larger spans of control.
  1. 1. work performed by subordinates and stable and routine.
    1. 2. subordinates perform similar work tasks.
      1. 3. Subordinates are concentrated in a single location.
        4. subordinates are highly trained and need little direction in performing tasks.
        5. rules and procedures defining task activities are available.
        6. support systems and personnel are available for the manager.
        7. Little time is required in nonsupervisory activities such as coordination with other departments or planning.
        8. Managers' personal preferences and styles favor a large span.
  2. tall structure: has an overall narrow span and more hierarchical levels.
  3. Flat structure: has a wide span, is horizontally dispersed, and has fewer hierarchal levels.
Centralization and decentralization
1. Centralization:means that decision authority is located near the top of the organization.
  1. Decentralization decision authority is pushed downward to lower organizational levels.
    1. 1. greater change and uncertainty in the environment are usually associated with decentralization.
      1. 2. the amount of centralization or decentralization should fit the firms strategy.
        3. in times of crisis or risk of company failure call Authority may be centralized at the top.
Departmentalization: the basis for grouping positions into departments and departments into the total organization.
1. Vertical Functional Approach/Functional approach: the group of positions into departments based on similar skills, expertise, work activities, and resource use.
  1. Divisional approach: occurs when departments are grouped together based on similar organizational outputs.
    1. Matrix approach: Combines aspects of both functional divisional structures simultaneously in the same part of the organization.
      1. two-boss employees: those who report to two supervisors simultaneously, must resolve conflicting demands from the matrix bosses.
      2. matrix boss: is the product or function boss, who is responsible for one side of the matrix.
      3. top leader: oversees both the product and functional chains of command.
      4. Team approach
        Cross functional teams: which consist of employees from various departments who are responsible to meet as a team and resolve mutual problems.
        Permanent teams: groups of employees who are organized in a way similar to a formal department.
        Team-based structure: the entire organization is made up of horizontal teams that Courtney their work and work directly with customers to accomplish the organizational goals.
        The Virtual Network Approach: means that the furnace contracts most of the major functions to separate companies important their activities from a small headquarters organization.
        Modular Approach: in which a manufacturing company uses outside suppliers to provide entire expense of the product try then assembled into the final product by A handful workers
Exhibit 10.9 page 278: Structural Advantages and Disadvantages
Organizing for Horizontal Coordination
1. Coordination: refers to the quality of collaboration across departments
  1. Reengineering: refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
Tasks Forces, Teams, and Project Management
1. task force: is a temporary committee designed to solve a short-term problem involving several departments task force members represent their departments and share information that enables coordination.

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