1. DEFINITION:
How job tasks are formally divided, grouped, and coordinated.
2.??IMPORTANT FACTORS:
? Work specialization: To what degree are activities subdivided into different jobs?
??Departmentalization: On what basis will jobs be grouped together?
??Chain of command: To whom do people report?
??Span of control: How many individuals report to a manager?
??Centralization vs. Decentralization: Where does decision-making lie?
??Formalization: To what degree do rules and regulations direct employee behavior?
3.?Types of Organizational Structure
Functional
Product
Matrix
Network
4.?Functional Organization:
Departmentalization based on the activities?or functions performed (e.g., sales, finance)
- Advantage : managers are experts in one particular function
- Limitations:
---may limit innovation and hinder cross-functional projects
---leads to silos
5.?Product Organizations:
?Departmentalization based on the products (or?product lines) produced
- separate divisions established that contain all of the resources?necessary to develop, manufacture, and sell a product
- organization is composed of separate divisions, each of which?operates independently – “Cost centers”
- Advantage : managers from each division can devote their energies?to one particular business
- Limitations:
--- loss of economies of scale because of duplication of?resources
--- problems of coordination across product lines may arise
6.?Matrix Organizations :
Departmentalization in which a product or project?form is superimposed on a functional form
Dual authority - employees report to two bosses, one functional, the?other product (project)
Advantages:
- Permits flexible use of an organization’s human resources
- Efficient means of responding to changed environment
- Enhances communication among managers
Limitations:
- frustration and stress due to role ambiguity and role?conflict
7.?Network organizations :?
flexible organization that forms teams specific?to each project or task
-Division of labor by knowledge within project
-All managers need to be network entrepreneurs
-Decentralized
-Low stability
-Informal structure important
?Advantages:
- highly flexible design
- allows for constant adaptation
- minimal infrastructure or fixed costs
Limitations:
-Jobs and roles ambiguous
-Top executives are responsible but have little control
-Difficult to maintain in a large organization
-Political behavior rampant
8.?Mechanistic Versus Organic Structures
9.?Structures are related to strategy
10.?Interorganizational Design
? Conglomerates – An organization (usually a very large,multinational one) adds an entirely unrelated business or?product
- Diversification
- Countercyclical business trends across different?industries
- Built-in markets and access to suppliers
? Strategic Alliance - 2 or more separate companies combine?forces to develop and operate a specific business
- Each firm contributes its own specialty
- Provide benefits to each individual organization that?could not be attained by operating separately
- Gain access to markets in foreign countries
- Share technology, i.e. licensing agreements
