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Chapter 6
- 1. Chapter 6 Organisation structure and design
- 25. Matrix structure
Editor's Notes
- Chapter 6 is the first chapter in Part 3 titled âOrganisingâ. See page 170 for the Chapter Outline and page 171 for the Learning Objectives.
- See page 170 for a detailed Chapter Outline.
- See page 175 for more details.
- See page 175 for this definition.
- See page 175.
- See pages 175-176. The organisation chart is an aid to visualise organisation structure. Before I discuss the four elements of an organisational structure, let me explain the organisation chart.
- Job design is an element of an organisationâs structure. In understanding what is job design, itâs important to know the term âwork specialisationâ. See pages 176-177 for more details.
- As I mentioned before, job design is an element of an organisationâs structure. What any job includes depends on job design, or specified task activities associated with a particular job. See page 177 for more details.
- Job design also influences employee motivation. As weâve seen in Chapter 9, motivation is an important concept in leading an organisation. Mangers must include these four aspects or approaches while working on job design. See pages 177-180.
- This concept draws on research by Adam Smith and Frederick Taylor. Weâve discussed about these management pioneers in Chapter 1. Some examples may assist student understanding. Whatâs about a critique of this concept? See page 177.
- It tries to cut boredom of job simplification! How this approach enhances motivation? See page 178 for an explanation of this point.
- Again, itâs important to understand how job enlargement makes jobs more interesting? See page 179.
- Here also the purpose is to create a potential for growth, achievement, responsibility, and recognitionâall drawn from motivation theories. See page 180. Hackman and Oldham(1980)âs âJob Characteristic Modelâ is a significant framework in understanding and applying the job enrichment approach in job design.
- See page 180 for an explanation of each characteristic. Itâs interesting to note that the more these core characteristics are incorporated in jobs, the more motivating the workers are likely to be. Itâs equally true in âlearningâ.
- The motivational value of the core job characteristics comes from workers experiencing the above three critical psychological states. See page 180.
- These are the outcomes a manager looks forward to achieve in his/her work unit. See page 180.
- Moderators must be understood well here. What happens, if these moderators were absent? Why and how they moderate? See page 180.
- This topic relates to the 2 nd of the four elements that makes organisation structure. See page 175. More details on types of departmentalisation can be found on page 181. Functional and divisional are the most basic departmentalisation types.
- See page 181. Show also the Figure placed in the next slide. Also discuss advantages and disadvantages of this structure. See Table 6.1 on page 182. For example, the advantages are i) allows in-depth development of expertise, and ii) efficient use of resources. On the other hand, disadvantages are i) slow response time on multifunctional problems, and ii) backlog of decisions at top of hierarchy. Itâs critical to explain where this structure is useful.
- See Figure 6.5 on page 182.
- See pages 182-184 for more details. In the next slide, a figure illustrating a divisional structure is shown. Show this to your students. Also discuss few advantages and disadvantages of this structure. See Table 6.2 on page 184 for a comprehensive list. Why these advantages and disadvantages are inherent of this structure?
- See Figure 6.5 on page 182. Itâs actually a geographic divisional structure. There are also other two divisional structures. They are i) product divisions, and ii) customer divisions.
- See pages 184-185. Itâs important to note that this structure combines advantages of both functional and divisional structures. Thatâs ingenious! But is it having any disadvantages? There is good list in Table 6.3 on page 186. They are i) conflicts between corporate departments and divisions, ii) excessive administrative overhead, and iii) slow response to exceptional situations. Where the hybrid structure is useful? See page 186.
- See pages 186-188. Also show the next slide that has a Figure of matrix structure. Itâs interesting note the advantages and disadvantages of this structure. See Table 6.4 on page 187 for a summarised list. When to consider a matrix structure? See page 188.
- See Figure 6.8 on page 187. This figure illustrates the salient features of a matrix structure.
- Faced by challenges posed by knowledge based economy, globalisation, fast paced competition, business organisations must reinvent themselves by forming creative organisational structures. Discuss the benefits of having these structures. See page 188.
- See page 188. Without co-ordination, the parts of an organisation cannot work together.
- See page 188.
- See page 189. When organisations are small, they can be informal, with few written policies and procedures. As they grow, organisations must increase formalisation in order to co-ordinate growing numbers.
- See page 189. Can you suggest a number?
- Span of management directly influences the number of levels in an organisationâs hierarchy levels. See page 190. What are the drawbacks of very tall organisations? See page 190.
- See page 190. â Downsizingâ is synonymous with ârestructuringâ.
- See pages 190-191. What are the different methods to accomplish restructuring?
- See page 191. What is delegation? Delegation means assigning to others the responsibility and authorityâbut not the accountabilityâto perform managerial tasks.
- See page 191
- See pages 192-194. If all problems were handled vertically, organisations would be paralysed due to inordinate delays. See page 192 for a complete discussion. To get around this problem, organisations facilitate âhorizontal co-ordinationâ. We must emphasise here that horizontal co-ordination mechanism augment the basic hierarchy and other vertical co-ordination methods by aiding information exchange across units at similar levels. Slack resources are a cushion of resources that allow adaptation to internal and external pressures, as well as the initiation of change. Information systems: A growing horizontal co-ordination method is the use of information systems to co-ordinate company parts. Lateral relations: Instead of referring issues up the hierarchy for resolution, lateral relations is the co-ordination of efforts by communicating and problem solving with peers in other departments or units. Direct contact: It is communication between two or more staff in different work units at similar levels, to co-ordinate tasks and solve problems. Liaison roles: It is a role to which someone is appointed to facilitate communication and resolution of issues between two or more areas. Task forces and teams: A taskforce is a temporary interdepartmental group formed to recommend on an issue. Teams or groups, temporary or permanent, set up to solve problems and apply solutions on an issue or area. Managerial integrator: A separate manager who co-ordinates related work across several functional departments.
- See pages 194-197.
- See pages 194-195 and Table 6.5 on page 195. The above Table provides major matches between structure and strategy.
- See pages195-196.
- See page 196.
- See pages 196-197.
- See page 198 for the Chapter Summary.