c. References: 1. Management 10th and 11th edition, Stephen P. Robbins and Mary Coulter. 2.

Building a learning organization, Flashpoint HR. 3. Building a learning organization, David A. Garvin. I. Contemporary Company Structures 1. Team Structure (Danh Phuong 36) a. Definition b. Advantages and disadvantages 2. Matrix Structure (Danh Phuong 36) a. Definition b. Advantages and disadvantages 3. Boundaryless Structure ( Tri Hai 1001025442) a. Definition What are the boundaries? How to remove vertical, horizontal, external boundaries?

b. Types of boundaryless structure i. Virtual structure Advantages Disadvantages

ii. Network organization structure Advantages Disadvantages

iii. Modular structure Advantages Disadvantages

Vocabulary

No

Vocabulary

English meaning The rights inherent in a

Vietnamese meaning

Authority

manager's position to tell people what to do and to expect them to do it. The line of authority extending

Chain command

of from upper organizational levels to the lowest levels, which clarifies who reports to whom.

Cross-functional teams Departmentalizati on Organizational chart Organizational structure

Work

teams

composed from

of

individuals

various

functional specialties. The basis on which jobs are grouped together. The visual representation of an organization's structure. The formal arrangement of jobs within an organization. Arranging and structuring work

Organizing

to accomplish an organization's goals. Made to appear, to exist by the

Virtual

use of computer sotfware (ex: on the internet)

Work specialization

Dividing work activities into separate job tasks.

Detail Expansion

1. Team structure:
a. Definition: A structure in which the entire organization is made up of work groups or teams: This structure tackles most big projects in small, tightly focused teams. Why employee empowerment is crucial in team structure? Theres no line of managerial authority from top to bottom. b. Advantages and Disadvantages: Advantages: Divisions work well Speeding up the work flow and lowering costs Improving employee motivation and eliminating unneccessary layers of management Disadvantages: Increasing the time spent in meetings time management is more challenging No clear chain of command Pressure on team to perform In large companies, this structure is like an improved form of functional or divisional structure because it allows the company to have the efficiency of a bureaucracy and at the same time provides the company with the flexibility of teams.

2. Matrix structure:
a. Definition: A structure in which specialists from different functional departments work on projects that are led by a project manager b. Advantages and Disadvantages: Advantages: Information sharing It gives flexibility to managers in assigning people to projects It encourages interorganizational cooperation and teamwork It can result in creative solutions to problems such as those associated with product development It provides for efficient use of organizational resources Disadvantages: Its costly and complex It can cause confusion among employees as to where their loyalty belongs to the project manager or to their functional unit It requires good interpersonal skills ans cooperative employees and managers Communication problems can emerge It may only be a temporary solution to a long term problem

3. Boundaryless structure
a. Definition: A structure that eliminates traditional barriers between departments as well as barriers between the organization and the external environment In a boundaryless organization, the boundaries that divide employees such as hierarchy, job function, and geography as well as those that distance companies from suppliers and customers are broken down. A boundaryless

organization seeks to remove vertical, horizontal, and external barriers so that employees,managers,customers, and suppliers can work together, share ideas, a ndidentify the best ideas for the organization.

What are the boundaries? Vertical Boundaries between layers within an organization

Classic Example: Military organization Problem: Someone in a lower layer has a useful idea; "Chain of command" mentality Horizontal Boundaries which exist between organization functional units. Each unit has a singular function. Problem: Each unit maximize their own goals but not the overall goal of the organization External Barriers between the organization and the outside world (customers, suppliers, other government entities, special interest

groups, communities).Customers are the most capable of identifying major problems in the organization and are interested in solutions. Problem: Lose sight of the customer needs and supplier requirements Geographic Barriers among organization units located in different countries Instead of being organized around functions with many hierarchical levels, the boundaryless organization is made up of self-managing and cross-

functional teams that are organized around core business processes that are critical for satisfying customers such as new-product development or materials handling. The traditional vertical hierarchy is flattened and replaced by layers of teams making the organization look more horizontal

than vertical. Some believe that the boundaryless organization is the perfect organizational structure for the21st century. How to remove vertical, horizontal, external boundaries? By removing vertical boundaries through such structural approaches as cross hierarchical teams and participative decision making, the hierarchy is flattened. Managers can remove horizontal boundaries by using cross functional teamsand organizing work activities around work processes instead of arrou ndfunctional departments. An external boundaries can be minimized or eliminatedby using strategic alliances with suppliers, or value chain manage mentcustomer organization linkages

b. Types of boundaryless structure: i) Virtual structure: Consisting of a small core of full-time employees + outside specialists temporarily hired ( as needed to work on projects). Work with: a small administrative staff + possibly a global network of freelancers who are assigned client work Advantages: A network of talents without unnecessary overhead and structural complexity Disadvantages: Lack of control Communication difficulties No pressure on specific person Time consuming when recruiting new freelancers on every new project. ii) Network organization structure:

The company uses its own employees to do some work and uses networks of outside suppliers to provide other needed work. Advantages: company can concentrate on what they do best Lower labor price (wage). Disadvantages: Lack of control iii) Communication difficulties.

Modular structure: An organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants.

Advantages: They cost significantly less to run than traditional organizations (less overhead). They focus on what they do best and outsource what they do less efficiently. Disadvantages: There is a loss of control over activities being completed by outsourced companies. They may reduce their competitive advantage if they mistakenly outsource a core business activity