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Span of Management
Span of management = the number of employees reporting to a supervisor
Is the deployment of organizational resources to achieve strategic goals.
is defined as the set of formal tasks assigned to individuals and departments
Centralization and decentralization
centralization: decision authority is located near the top of the organization
decentralization: decision authority is pushed downward to lower organization levels
- Greater change and uncertainty are usually associated with decentralization
Centralization or decentralization should fit the firm's strategy.
Chain of Command
a link of unbroken line of authority that links all employees in an organization and shows who reports to whom.
Functional and Divisional
- Vertical Functional approach
- Grouping of positions into departments based on skills, expertise, work activities and resource use.
- Divisional Approach
- Grouping based on organizational output
- product program business
- Geographic or customer based division.
Matrix approach combines functional and divisional approaches
improve coordination and information
dual lines of authority.
- Team Approach is very widespread trend
- -allows managers to delegate authority
- -flexible, responsive
Widespread trend in departmentalization
Allows managers to delegate authority to lower levels
Use of cross functional teams which include members from various departments
Permanent teams are organized like a department for a specific task or project.
Virtual Network Approach
Extends idea of horizontal coordination and collaboration
- Could be a loose interconnected group
- i.e outsourcing
Virtual Network structure means that the firm subcontracts most of its major functions to separate companies.
Organizing for Horizontal Coordination
- Companies need more flexibility than vertical structure can offer
- -Meet fast shifting environment
- -Break down barriers between departments
- -need integration and coordination.
- Lack of coordination and cooperation can cause information problems
- -growing global challenge
Task Forces,teams and project management
Task force - a temporary team or committee formed to solve a specific short term problem involving several departments
- Cross Functional Team
- Furthers horizontal coordination by including members across the organization.
Project Manager: A person responsible for coordinating the activities of several departments on a full time basis for the completion of a specific project.
Structure fits the TEchnology
Technology: knowledge tools techniques and activities
-Technology varies but it can impact structure
Difference among three manufacturing technologies is technical complexity:
- -Small batch and unit production
- -large batch and mass production
- -Continuous process production.
Service organizations include consulting companies , airlines, hotels, amusement parks and educational organizations
- Service Technology defined as:
- -Intangible output
- -Direct Contact with Customers
- -Need More interaction horizontal Communication
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