OB lecture 3 team and matrix structure

Team structure is used as a complement to Functional structure A Matrix structure can be considered a special form of Team structure Advantages of a team dynamic and adaptive Can we perform a surgery using functional structure? Especially good for innovative or knowledge work It is the design principle for top management and innovative work Limitations of a team Need Clear Objectives Constantly need a mission or objectives, or the team disband Psychological Demand Demand continuous attention to its management, relationships of member Small Size The greatest limitation team is its size, 7 to 15 – size of team sports – soccer, criket, baseball

Lecture Unit Organizations and Behaviour Team and Matrix Structure Functional Structure is poor in communications and decision making To overcome these limitations, we can add Team, or Matrix Structure Divisional Structure onto or into a functional structure iPhone is quickly capturing the smartphone market Samsung needs to quickly come out a new model as goods as iPhone, if not better and cheaper Samsung Product Development Samsung new product must meet Time to market Design for manufacturing Early Supplier Involvement (ESI) As such, product development must work simultaneously with marketing, purchasing, manufacturing, finance… A Matrix Structure Is Used CEO See also Page 70 Text book Product evelopment Finance Purchasing Manufacturin g Sales and Marketing Product Development Team Product Development Team Product Development Team Team as a complement to Functional Structure Team structure is used as a complement to Functional structure A Matrix structure can be considered a special form of Team structure History of Teams Humans have used team for hundreds of thousands of years In hunting ! What differential Team structure from simple structure is role Classical Examples of Teams… A Team consists of two or more persons Examples Soccer Team Surgical Team Symphony Orchestra …………… These are examples of well function team Elements of a Team A Team must have Objectives, e.g a mission: to win the Word Cup Roles or complementary skills Performance standard Group In the absence of these elements, two or more persons together can not be called a team, but possibly a group e.g A tour group to Japan There is a common objective to enjoy visiting Japan, but there are no roles or standards Leadership in Team Leadership in a team may be permanent or shifting Permanent e.g Management team or a doctor or nurse patient care Shifting with each phase In soccer, the player in possess of the ball is the leader, not the captain, e.g David Beckham Responsibility and Accountability in Team The team as a whole is response for the task Individual contributes his/her particular skills and knowledge But every individual is always responsible for the output and performance of the whole team What is Responsibility and Accountability Responsibility What you are responsible for Accountability What you are answerable for Do Members Need to Know Each Other Well? Team member need not know each other well to perform as a team e.g A Filming team for a movie Members may meet each other for the first time Advantages of Team Structure - dynamic and adaptive Can we perform a surgery using functional structure? - Especially good for innovative or knowledge work It is the design principle for top management and innovative work Why Team Can Work So Well Organizing Work, physical as well as mental, can be organized in ways: Organized by each stages in the process Work moves where the skills and tools are for each of the steps (Functional Structure) Skills and tools join together and move to the work – Team Structure ! The top management team of an organization should be a team structure Peter F Drucker The Inventor of “Management’ Limitation/Disadvantages of Team • Need Clear Objectives Constantly need a mission or objectives, or the team disband • Psychological Demand Demand continuous attention to its management, relationships of member • Small Size The greatest limitation team is its size, to 15 – size of team sports – soccer, criket, baseball Additional Problems of Matrix Structure A member reports to bosses CEO Product evelopment Product Development Team Product Development Team Product Development Team Finance Purchasing Manufacturin g Sales and Marketing In "Administration Industrielle et Générale“ (1915), Henri Fayol not only designed and defined functional structure, he laid down 16 principles of management - Classical Management Theory that we will discussed under Outcome (still Assignment 1) – Week Henri Fayol Administration Industrielle et Générale”, 1915 Functional Structure Classical Management Theory Classical Management Theory 16 Principles by Henri Fayol, See Page 34 of text book Division of Labor Principle of Authority and Responsibility Principle of Scalar Chain of Command Unity of Command - one boss Principle of Subordination of individual interests to the general interest Order People and materials should be in the right place at the right time Equity Managers should be kind and fair to their subordinates Stability of tenure of personnel Initiative Employees who are allowed to originate and carry out plans will exert high levels of effort 10 Esprit de corps Promoting team spirit will build harmony and unity within the organisation 11 … Principle of Unity of Command A person should report to only one boss Principle of Scalar Chain of Command Authority passes down the hierarchy Subordinates reports up the hierarchy Principle of Scalar Chain of Command CEO Ei Ei Htwee Office Manager IT Manager Finance Manager Sales Manager Purchasing Manager North Vietnam South Vietnam Computeris ed Accounts Manual Sales Executive Supplier Liaison Sales Executive Import Sales Executive Order Preparation Stock Control Authority Reporting Problems of Matrix Structure Matrix Structure violates two principles in Classical Management theory: - Principle of Unity of Command Principle of Scalar Chain of Command As such, matrix structure is difficult to manage, and place on its members psychological demand ... Development Team Team as a complement to Functional Structure Team structure is used as a complement to Functional structure A Matrix structure can be considered a special form of Team structure. .. Reporting Problems of Matrix Structure Matrix Structure violates two principles in Classical Management theory: - Principle of Unity of Command Principle of Scalar Chain of Command As such, matrix structure. .. of the steps (Functional Structure) Skills and tools join together and move to the work – Team Structure ! The top management team of an organization should be a team structure Peter F Drucker