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ORGANIZATION STRUCTURES
ORGANIZATION STRUCTURES
ORGANIZATION STRUCTURES
Structure
system of tasks, reporting relationships, and communication that links
people and positions within an organization.
Organization Charts
describe the formal structure, how an organization should ideally work.
ORGANIZATION STRUCTURES
ORGANIZATION STRUCTURES
Formal Structure
The official structure of the organization
Informal Structure
the unofficial relationships that develop
among an organizations members.
ORGANIZATION STRUCTURES
ORGANIZATION STRUCTURES
Organization Structures
MODULE GUIDE 13.2
ORGANIZATION STRUCTURES
Functional Structures
Departmentalization
Grouping together people and jobs into one unit
Functional Structures
group together people using similar skills to perform similar activities.
Potential Advantages of Functional Structures
Economies of scale make efficient use of human resources.
Functional experts are good at solving technical problems.
Training within functions promotes skill development.
Career paths are available within each function.
ORGANIZATION STRUCTURES
Functional Structures
ORGANIZATION STRUCTURES
Functional Structures
Functional Chimneys Problem
A lack of communication and coordination
across functional organizations
ORGANIZATION STRUCTURES
Divisional Structures
Divisional structures group together
people who work on a similar product,
work in the same geographical region,
or serve the same customers.
Potential Advantages of Divisional Structures
Expertise focused on special products, customers,
regions
Better coordination across functions within divisions
Better accountability for product or service delivery
Easier to grow or shrink in size as conditions change
ORGANIZATION STRUCTURES
Divisional Structures
ORGANIZATION STRUCTURES
Matrix Structure
uses permanent cross functional teams to
try to gain the advantages of both the
functional and divisional approaches.
ORGANIZATION STRUCTURES
Matrix Structures
ORGANIZATION STRUCTURES
Team Structures
Team Structures
make extensive use of permanent and temporary
teams, often cross functional, to improve
communication, cooperation, and problem solving.
Potential Advantages of Team Structures
Team assignments improve communication, cooperation, and
decision-making.
Team members get to know each other as persons, not just job
titles.
Team memberships boost morale, and increase enthusiasm and
task involvement.
ORGANIZATION STRUCTURES
Team Structures
ORGANIZATION STRUCTURES
Network Structures
Network structures maintain a staff of core fulltime
employees and use contracted services and
strategic alliances to accomplish many business
needs.
ORGANIZATION STRUCTURES
Virtual Structures
Virtual Structure
Uses information technologies to operate as a
shifting network of alliances.
MANAGEMENT TIPS
Seven deadly sins of outsourcing:
1. Outsourcing activities that are part of the core competency
2. Outsourcing to untrustworthy vendors
3. Agreeing to unfavorable contracts with the vendor
4. Overlooking impact on existing employees
5. Not maintaining oversight; losing control to vendors
6. Overlooking hidden costs of managing contracts
7. Failing to anticipate need to change vendors or cease outsourcing