Management, 6e Schermerhorn Prepared by Cheryl Wyrick California State Polytechnic University Pomona John Wiley & Sons, Inc

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Schermerhorn - Chapter 103 Chapter 10 Organizing to Create Structures 4 Planning Ahead –What is organizing as a management function? –What are the major types of organization structures? –What are the new developments in organization structures? –What organizing trends are changing the modern workplace?

Schermerhorn - Chapter 104 Organizing as a Management Function 4 What is Organization Structure? –system of tasks, workflow, reporting relationships, and communication channels that link together workgroups

Schermerhorn - Chapter 105 Organizing as a Management Function 4 Formal Structure –official working relationships often represented by an organizational chart

Schermerhorn - Chapter 106 Organizing as a Management Function 4 Informal Structure –unofficial working relationships –important in understanding organizations –sometimes work against best interest of organizations

Schermerhorn - Chapter 107 Traditional Organization Structures 4 Functional –people performing similar tasks are formally grouped together –workers share technical expertise, interests, and responsibilities

Schermerhorn - Chapter 108 Traditional Organization Structures 4 Advantages of Functional Structures –economies of scale –task assignments consistent with expertise –high-quality technical problem solving –in-depth training and skill development –clear career paths

Schermerhorn - Chapter 109 Traditional Organization Structures 4 Disadvantage of Functional Structures –functional chimneys problem lack of problem solving across functions

Schermerhorn - Chapter 1010 Traditional Organization Structures 4 Divisional Structures –groups together employees who work on the same product or service in the same geographic area

Schermerhorn - Chapter 1011 Traditional Organization Structures 4 Advantages of Divisional Structures –more flexibility –improved coordination –clear points of responsibility –expertise focused on specific customers, products, and regions –greater ease in restructuring

Schermerhorn - Chapter 1012 Traditional Organization Structures 4 Disadvantages of Divisional Structures –reduce economies of scale –increase costs through duplication of resources across divisions –create unhealthy rivalries

Schermerhorn - Chapter 1013 Traditional Organization Structures 4 Product Structures –group together jobs and activities working on a single product or service 4 Geographical (Area) Structures –group together jobs and activities being performed in the same location or geographical region

Schermerhorn - Chapter 1014 Traditional Organization Structures 4 Customer Structures –group together jobs and activities that are serving the same customers or clients 4 Process Structures –group together jobs and activities that are related to one another and collectively create something of value

Schermerhorn - Chapter 1015 Traditional Organization Structures 4 Matrix Structure –combination of functional and divisional structures –used in manufacturing service industries professional fields nonprofit sector

Schermerhorn - Chapter 1016 Traditional Organization Structures 4 Advantages of Matrix Structure –better interfunctional cooperation –increased flexibility in restructuring –better customer services –better performance accountability –improved decision making –improved strategic management

Schermerhorn - Chapter 1017 Traditional Organization Structures 4 Disadvantages of Matrix Structures –two-boss system is susceptible to power struggles –workers may suffer task confusion –focused team loyalties to the detriment of organization

Schermerhorn - Chapter 1018 Development in Organization Structures 4 Team Structures –cross functional more horizontal

Schermerhorn - Chapter 1019 Developments in Organization Structures 4 Advantages of Team Structures –break down barriers between operating departments –boost morale –improve speed and quality of decisions

Schermerhorn - Chapter 1020 Developments in Organization Structures 4 Disadvantages of Team Structures –conflicting loyalties among members –spend a lot of time in meetings

Schermerhorn - Chapter 1021 Developments in Organization Structures 4 Network Structures –central core that is linked through networks of relationships with outside suppliers of essential services boundaryless organizations virtual corporations

Schermerhorn - Chapter 1022 Developments in Organization Structures 4 Advantages of Network Structures –operate with fewer full-time employees –reduced overhead –increased operating efficiency –work together across great distances instead of face-to-face

Schermerhorn - Chapter 1023 Developments in Organization Structures 4 Disadvantages of Network Structures –coordination of the entire system of relationships

Schermerhorn - Chapter 1024 Developments in Organization Structures 4 Organizing Trends in the Modern Workplace –Shorter Chains of Command organizations are reducing levels of management –Less Unity of Command increases in cross-functional teams, task forces, and horizontal structure

Schermerhorn - Chapter 1025 Developments in Organization Structures 4 Organizing Trends in the Modern Workplace –Wider Spans of Control chains of command are shortened managers have responsibility for larger number of subordinates

Schermerhorn - Chapter 1026 Developments in Organization Structures 4 Organizing Trends in the Modern Workplace –More Delegation and Empowerment delegation –assigns responsibility –grants authority to act –creates accountability

Schermerhorn - Chapter 1027 Developments in Organization Structures 4 Organizing Trends in the Modern Workplace –More Delegation and Empowerment empowerment –freedom to contribute ideas –increases job satisfaction –better job performance

Schermerhorn - Chapter 1028 Developments in Organization Structures 4 Organizing Trends in the Modern Workplace –Decentralization with Centralization empowerment allows for more decentralization advances in information technology allow for retention of centralized control

Schermerhorn - Chapter 1029 Developments in Organization Structures 4 Organizing Trends in the Modern Workplace –Reduced use of Staff specialized personal