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Organization structure (management)

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Organization structure (management)

  1. 1. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-1 • Centralization and Decentralization • Functional structure, • Multidivisional structure • Formal and informal integrating mechanisms Chapter no. 8 Organizing
  2. 2. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-2 Designing Organizational Structure • Organizing - arranging and structuring work to accomplish an organization’s goals. • Organizational Structure - the formal arrangement of jobs within an organization.
  3. 3. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-3 Purposes of Organizing • Divides work to be done into specific jobs and deparments. • Assigns tasks and responsibilities associated with individual jobs. • Coordinates diverse organizational tasks. • Establishes relationships among individuals, groups and deparments. • Allocates organizational resources.
  4. 4. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-4 Organization Structure The location of decision-making responsibilities in the firm, the formal division of the organization into subunits, and the establishment of integrating mechanisms to coordinate the activities of subunits.
  5. 5. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-5 Controls Metrics used to measure the performance of subunits and to judge how well managers are running those subunits.
  6. 6. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-6 Incentives Devices used to encourage desired employee behavior.
  7. 7. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-7 Organizational Culture Value and assumptions that are shared among the employees of an organization. Control Structure Incentives Culture People
  8. 8. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-8 Departmentalization by Type • Functional – Grouping jobs by functions performed • Product – Grouping jobs by product line • Geographical – Grouping jobs on the basis of territory or geography • Customer – Grouping jobs by type of customer and needs
  9. 9. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-9 Common Forms of Departmentalization
  10. 10. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-10 Centralization • Centralization - the degree to which decision making is concentrated at upper levels in the organization. • This is common in organizations in which top managers make all the decisions and lower-level employees simply carry out those orders.
  11. 11. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-11 Organizational Structure • Chain of Command - the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization—clarifies who reports to whom.
  12. 12. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-12 Chain of Command
  13. 13. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-13 Organizational Structure • Authority - the rights inherent in a managerial position to tell people what to do and to expect them to do it. • Responsibility - the obligation or expectation to perform. • Unity of Command - the concept that a person should have one boss and should report only to that person.
  14. 14. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-14 Span of Control • Span of Control - the number of employees who can be effectively and efficiently supervised by a manager.
  15. 15. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-15 Decentralization • Decentralization - when an organization delegates decision making to managers who are closest to the action. • Employee Empowerment – Increasing the decision-making authority (power) of employees
  16. 16. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-16 Types of Structure • Functional Structure • Multidivisional Structure Structure: Dividing into subunits.
  17. 17. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-17 Types of Structure • Functional Structure A structure that follows the obvious division of labor within the firm with different functions focusing on different tasks.
  18. 18. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-18 Types of Structure • Multidivisional Structure A structure in which a firm is divided into different divisions, each of which is responsible for a distinct business area.
  19. 19. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-19 Designing Structure: Integrating Mechanism • To examine some means of coordinating those subunits. 1.Formal Integrating Mechanism 2.Informal Integrating Mechanism
  20. 20. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-20 Formal Integrating Mechanism • Direct contact between subunits managers. • Managers of various subunits just contact each other whenever they have a common concern. • Coordination is more important today. • Integration can be improved by assigning a person in each subunit to coordinate with another subunit (Permanent relationship).
  21. 21. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-21 Informal Integrating Mechanism • To know each other personally. • Suppose A a marketing manager in spain need to know a solution of a technical issue. The solution is with Manager D in UK. He will 1st ask B then C. • Firms also using management development programs to build informal networks.

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