Organizing

Leonor LA
Flashcards by Leonor LA, updated more than 1 year ago
Leonor LA
Created by Leonor LA about 6 years ago
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Based on Powerpoint Presentation of: Lecturer: Nina Pološki Vokić, Ph.D., full professor Course: Management BDIB Academic year 2014/2015

Resource summary

Question Answer
Organizing The process of arranging people and resources to work toward a common purpose.
Organization structure A system of tasks, reporting relationships, and communication linkages.
Organization chart Describes the basic arrangement of work positions within an organization
Chain of command Links all persons with successively higher levels of authority.
Span of control The number of subordinates reporting directly to a manager.
Departmentalization The process of grouping together people and jobs into work units.
Centralization The concentration of authority for most decisions at the top level or an organization.
Decentralization The dispersion of authority to make decisons throughout all levels of the organization.
Delegation The process of distributing and entrusting work to other persons
Formal structure The official structure of the organization.
Informal structure The set of unofficial relationships among an organization’s members.
Types of organization structures Traditional organization structures Developments in organization structures
Traditional organization structures (divide in...) Functional structures Divisional structures Matrix structures
Developments in organization structures (divide in...) Team structures Network structures
Functional structure (definition) Groups together people with similar skills who perform similar tasks
Functional structure (advantages) Economics of scale with efficient use of resources Task assignments consistent with expertise and training High-quality technical problem solving In-depth training and skill development within functions Clear career paths with functions
Functional structure (disavantages) Lack of communication, coordination and problem solving across functions Decision making and problem solving is slowed down The possible loss of clear responsibility for cost containment
Divisional structure (definition) Groups together people who work on the same product, work with similar customers, or who work in the same area or processes
Divisional structure (Advantages) More flexibility in responding to environmental changes Improved coordination across functional departments Clear points of responsibility Expertise focuses on specific customers, products, and regions Greater ease in changing size by adding or deleting divisions
Divisional structure (Disadvantages) Reduce economics of scale Increase costs through the duplication of resources and efforts across divisions Create unhealthy rivalries
Matrix structure (definition) Combines functional and divisional approaches to emphasize project teams
Matrix structure (Advantages) Better interfunctional cooperation in operations and problem solving Increased flexibility Better customer Improved decision making Improved strategic management
Matrix structure (Disadvantages) Two-boss system susceptible to power struggles Task confusion Teams may develop “groupitis” The requirements of adding the team leaders to a matrix structure can result in increased costs
Team structure (definition) Uses permanent and temporary cross-functional teams to improve lateral relations
Team structure (Advantages) Team assignments help to break down barriers between operating departments Because the teams focus shared knowledge and expertise on specific problems, they can also improve the speed and quality of decisions in many situations
Team structure (Disadvantages) Conflicting loyalties among members to both team and functional assignments. By their very nature, teams spend a lot of time in meetings
Network structure (definition) Consists of a central business core that works with networks of outside suppliers and service contractors
Network structure (Advantages) Creative use of technology Linkages can be developed and maintained with partners across great distances rather than face to face Helps organizations stay cost competitive through reduced overhead and increased operating efficiency
Network structure (Disadvantages) The more complex the business or mission of the organization, the more complicated the network of contracts and relationships that must be maintained It may be difficult to control and coordinate between partners in a network If one part of the network breaks down or fails to deliver, the entire system suffers the consequences
Factors influencing organizing Internal factors (ex: Size, Life cycle) External factors (ex: Integration processes, Market)
Organizing trends Shorter chains of command Less unity of command Wider spans of control More delegation and empowerment Decentralization with centralization Reduced use of staff
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