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This chapter’s objectives are to: Explain how differentiation and integration define performance cultures, describe how managers vertically organize processes and teams to centralize decision making, describe how mangers horizontally organize processes and teams to distribute decision making throughout the organization,...
MANAGEMENT SECOND EDITION Chapter 10 Structuring Organizations Learning Objectives § § § § Explain how differentiation and integration define performance cultures Describe how managers vertically organize processes and teams to centralize decision making Describe how mangers horizontally organize processes and teams to distribute decision making throughout the organization Show how managers combine vertical and horizontal approachestoorganizationaldesigninordertobemore adaptive Copyrightâ2017JohnWiley&Sons,Inc Copyrightâ2017JohnWiley&Sons,Inc TheBasics(p.256) Đ Hierarchy ã ã ã • Vertically organized structure of power relationships, where the top level holds the most power and resources Every organization needs some type of structure in place to be successful Unites the different units of a company Brings units in tune with the company’s underlying principles, core purposes, goals, and objectives Copyright ©2017 John Wiley & Sons, Inc The Basics (cont.) Hierarchycomesinmanystates Figure10.1 Copyrightâ2017JohnWiley&Sons,Inc TheBasics(cont.) Đ Designingperformancecultures(p.256) ã ã ã Throughthecreationofanorganizationalculture,managers can,consciouslyorunconsciously,designaperformance culture Differentiationprocessthroughwhichmanagersdivide laborbasedontasksandfunctions(p.257) Integrationhorizontalcoordinationbetweenfunctions, departments,andorganizationalactivities Đ Organizationsmuststrikeabalancebetweendifferentiationand integration Copyrightâ2017JohnWiley&Sons,Inc TheBasics(cont.) Đ Structuremustbemodifiedtoadapttochangesinthe internalandexternalenvironments ã ã Organicorganizationhighlyadaptivestructuredefined byhorizontalintegration,distributeddecisionmaking,and employeeswithahighdegreeofgeneralization(p.257) Spanofcontroltheoptimumnumberofdirectreports thatapersoncanmanageeffectively Copyrightâ2017JohnWiley&Sons,Inc TheBasics(cont.) Đ Specialization(p.258) ã ã Đ Formofdifferentiation Focusingagrouporindividualsactivitiesbasedon strengths,aptitudes,orskills Coordination ã Synchronizationofanorganizationsfunctionstoensure efficientuseofresourcesinpursuitofgoalsandobjectives Copyrightâ2017JohnWiley&Sons,Inc TheBasics(cont.) Đ Togiveclaritytotheintegrationprocess,managers shouldrelyon: • • • Standardization – performance context where policies and procedures seek to create uniform results (p. 258) Formalization – degree to which policies and procedures determine specific jobs and functions Delegation – when a manager grants power and authority Copyright ©2017 John Wiley & Sons, Inc Vertical Approach (p. 259) § Vertical organization structure • • • Characterized by hierarchical authority and communication channels Authority – implicit and explicit power that a manager or employee has to fulfill an organizational function or role Chain of command – predefined structural order of authoritythatdetermineshowdecisionsaremadeand communicated Copyrightâ2017JohnWiley&Sons,Inc VerticalApproach(cont.) Figure10.2 Copyrightâ2017JohnWiley&Sons,Inc VerticalApproach(cont.) Đ Corporategovernance(p.261) ã § Broker • § Compendium of polices intended to ensure transparency and fulfillment of duties to stakeholders Trusted intermediary that facilitates mutuallyagreed upon outcomes for two or more parties Organization chart • Visualdocumentthatcommunicateshowacompanyis organized Copyrightâ2017JohnWiley&Sons,Inc VerticalApproach(cont.) Đ Verticalmodelatwork(p.261) ã Đ Networkorganizationagroupofindependentcompanies thatorganizethemselvestoappearasalargerentity(p. 262) Changingorganizationalstructure ã Unityưofưcommandprincipleeachemployeereportsto andisaccountabletoonlyonemanager(p.263) Copyrightâ2017JohnWiley&Sons,Inc HorizontalApproach(p.264) Đ Decentralizedstructure ã Đ Reliesonallemployeestocollectandcommunicate informationinordertomakedecisionsandrecommend changes Researchingorganizationalstructures ã Departmentalizationgroupstogetherprocessesandjobs basedonfunctions,productsorcustomers Copyrightâ2017JohnWiley&Sons,Inc HorizontalApproach(cont.) § Functional organization (p. 265) • • § Divisional organization • § Hierarchical structure where employees are managed through clear levels of authority Autonomylevelofindividualdiscretionthatanemployee hastomakedecisions Processesandjobsaregroupedbasedonclearlydefined marketsegmentsorgeography Matrixorganization ã Facilitateshorizontalintegrationandcollaboration Copyrightâ2017JohnWiley&Sons,Inc ... Differentiation? ?–? ?process through which managers divide labor based on tasks and functions (p. 257) Integration? ?–? ?horizontal coordination between functions, departments, and organizational activities § Organizationsmuststrikeabalancebetweendifferentiationand... To give clarity to the integration process, managers should rely on: • • • Standardization? ?–? ?performance context where policies and procedures seek to create uniform results (p. 258) Formalization? ?–? ?degree to which policies and procedures ... Copyrightâ2017JohnWiley&Sons,Inc VerticalApproach(p.259) Đ Verticalorganizationstructure ã ã ã Characterizedbyhierarchicalauthorityandcommunication channels Authority? ?–? ?implicit and explicit power that a manager or