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Management and Organization Behavior

Management and Organization Behavior. MGMT 3140 Organization Structure. Organization Charts. The pyramid Tells who reports to whom Explains the organization’s differentiation. Differentiation. Per our first discussion on wagons, blankets and houses… Division of labor / job specialization.

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Management and Organization Behavior

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  1. Management and Organization Behavior MGMT 3140 Organization Structure

  2. Organization Charts • The pyramid • Tells who reports to whom • Explains the organization’s differentiation

  3. Differentiation • Per our first discussion on wagons, blankets and houses… • Division of labor / job specialization

  4. Differentiation • Vertical – authority • Horizontal – functioning/specializing • Integration – communication and control

  5. Leadership • The Board of Directors • Chairman of the Board • CEO • Corporate governance • Insiders vs. outsiders

  6. Hierarchy of Authority • Authority: The power that enables a person in a higher position to hold a person in a lower position accountable for his or her actions. Carries with it the • Responsibility (accountability) for using organizational resources effectively. • Span of control: The number of subordinates who report to a manager. • Tall organizations have many levels in the hierarchy relative to their size; flat organizations have few.

  7. A Wide Span of Control

  8. A Narrow Span of Control

  9. Insert Figure 15.7 here

  10. Delegation • Manager A pg 283 • Manager B

  11. Managers--- • “Passing the buck” • Pass on the praise and accept the blame --T. A. Sgritta • Product managers – role in business

  12. Management • Results-oriented organization • Clockless schedule • Employees responsible for their productivity

  13. Management • Delegation • Advantages: • OJT for long haul • Closer to the action • Motivation • Acceptance • Monkey off of the manager’s back • Disadvantages • Time in the short run

  14. Delegation / Decentralization • Goals (metrics) • Specific person (or group) • Mutual adjustment • Tools (resources and power) • Review and feedback (and suggestions) • Plan and actual • Some tasks can’t be delegated

  15. Horizontal Structure • Line vs. Staff • Form of structure

  16. Functional Structure An organizational structure that groups together people who hold similar positions, perform a similar set of tasks, or use the same kinds of skills.

  17. Functional Structure • Economies of scale • Monitoring the field • Performance standards • Specialized training/skills • Focused on one area (limited misc. work) • Line of communication is simple • Promotional/career opportunities are clear • Easiest to set-up

  18. Insert Figure 15.3 here

  19. Divisional Structures Advantages • Information needs are managed easily • Full time commitment to area (product, etc.) • Task is clear • Broad exposure and training

  20. The Divisional Structure Possible disadvantages • Increased costs • Duplication of functions • Miscommunication across divisions • Competition for resources

  21. Insert Figure 15.4 here Note: only include part A

  22. Insert Figure 15.4 here Note: only include part B

  23. Insert Figure 15.4 here Note: only include part C

  24. The Matrix Structure • Complex network of reporting relationships among product teams and functions • People and resources grouped by • Function • Product

  25. A Matrix Structure

  26. Network Structure • Also called dynamic, network, modular or virtual organizations • Tied together with contracts (outsourced)

  27. Integration • Standardization • Formalization • Planning • Mutual adjustment

  28. Mutual Adjustment • Direct contact • Liaison • Task forces • Teams • Product managers • Matrix organizations

  29. Using a Team to Increase Coordination

  30. Bureaucracy and Beyond • Mechanistic structures • Organic structures • Independent divisions • Conglomerates

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