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Organizing (2)
PhD, Eng., Katarzyna Piórkowska
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Grouping Jobs into Functions
FUNCTION: people working together with
similar skills, tools or techniques to
perform their jobs.
FUNCTIONAL STRUCTURE consists of
departments such as marketing,
production, finance, and etc.
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PROS:
workers can learn from others doing
similar tasks,
easy for managers to monitor and
evaluate workers.
CONS:
hard for one department to communicate
with others,
managers can become preoccupied with
their department and forget the
company.
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Grouping Jobs into Products
PRODUCT STRUCTURE consists of
departments such as product A, product B,
and etc.
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PROS:
increases accountability for product
performance,
activities related to a specific product
are under the direction of a single
manager.
CONS:
hard for one department to communicate
with others,
managers can become preoccupied with
their department and forget the
company.
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Grouping Jobs into Regions
REGION STRUCTURE consists of
departments such as Asia, Europe, and etc.
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PROS:
employees are close to customers,
a regional manager has flexibility needed
to choose the products that best meets
regional customers.
CONS:
hard for one department to communicate
with others,
managers can become preoccupied with
their department and forget the
company.
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Grouping Jobs into Markets
MARKET STRUCTURE consists of
departments based on customers’ problems
and needs.
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PROS:
workers can learn from others doing
similar tasks,
easy for managers to monitor and
evaluate workers.
CONS:
hard for one department to communicate
with others,
managers can become preoccupied with
their department and forget the
company.
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Grouping Jobs into Processes
PROCESS STRUCTURE: units are organized
around common skills needed to complete a
particular process (testing, payment).
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PROS:
offers are basis for homogeneous
categorization of activities.
CONS:
hard for one department to communicate
with others,
managers can become preoccupied with
their department and forget the
company.
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Types of organization design
FLAT STRUCTURE
TALL STRUCTURE
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Types of organization design
TALL STRUCTURES...
...have many levels of authority relative to
the organization’s size
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Types of organization design
FLAT STRUCTURES...
...have few levels of authority but a wide
span of control
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Types of organization design
SIMPLE STRUCTURE
FUNCTIONAL STRUCTURE
DIVISIONAL STRUCTURE
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SIMPLE STRUCTURE
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FUNCTIONAL STRUCTURE
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DIVISIONAL STRUCTURE
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Contingency variables affecting
structure
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A MECHANISTIC STRUCTURE:
extensive departmentalization,
high formalization,
a limited information network.
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AN ORGANIC STRUCTURE:
flat,
uses cross-hierarchical and cross-
functional teams,
low formalization,
participative decision making.
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Coordinating functions
AUTHORITY
HIERARCHY OF AUTHORITY
SPAN OF CONTROL
LINE AUTHORITY
STAFF AUTHORITY
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Integrating mechanisms
DIRECT CONTACT
LIAISON ROLES
TASK FORCES
CROSS-FUNCTIONAL TEAMS
MATRIX STRUCTURE
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MATRIX STRUCTURES...
...managers group people by
function/product/market etc. and
product/market/function etc. teams
simultaneously
…results in a complex network of reporting
relationships
…very flexible and can respond rapidly to
changes
…each employee has two bosses what can
cause problems
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HYBRID STRUCTURES...
...the ability to break a large organization
into many smaller ones
…it makes it much easier to manage
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ORGANIZATIONAL STRUCTURES TYPES
1. A SPAN OF CONTROL AND NUMBER OF
LEVELS OF AUTHORITY (flat and tall
structures)
2. DOMINANT ORGANIZATIONAL BONDS
(line structures, functional structures,
ordnance structures, technical
structures)
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ORGANIZATIONAL STRUCTURES TYPES
3. DOMINANT CRITERIA OF SEPARATING
BASIC ORGANIZATIONAL PATTERN
(functional structures, object structures,
geographic structures)
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Thank You !!!