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Mgmt function involves determining what tasks are to be done, how to group tasks, who reports to whom, where decisions are to be made.
How job tasks are formally divided, grouped and coordinated w/i an org
- Develop or change an orgs structure.
- Involves 6 key elements, work specialization, departmentalization, chain of command, span of control, centralization, decentralization, formalization
- Degree to which tasks in an org are subdivided into separate jobs.
- Division of labour
- Basis on which jobs are grouped together.
- Group common tasks or jobs together
Chain of Command
- Continuous line of authority that extends from top of org to lowest level.
- Clarifies who reports to whom.
Rights inherent to position
Obligation to perform duties
Need to report and justify work to a managers superiors
Unity of Command
Employees receive commands from only one supervisor
- Assignment of authority to another person to carry out specific duties.
- Allows employee to make some decisions.
Span of Control
- # of employees a manager can efficiently and effectively manage.
- Employee performance could suffer if span is too large.
- Width of span affected by skills and abilities, complexity of tasks, physical proximity, strength of org culture, preferred mgmt style
- Degree to which decision making is concentrated at a single point in the org.
- Org is never totally centralized
- Eg. CEO makes all the decisions
- Degree to which lower level employees provide input or actually make decisions.
- Org is never totally decentralized
- Degree to which jobs are standardized and employee behaviour is guided by rules and regulations.
- Many companies today are less reliant on strict rules.
- Some are needed to ensure consistency.
- HIGH - little decisions, McDonalds
- LOW - more decisions, news reporter
- High specialization
- Rigid departmentalization
- Clear chain of command
- Narrow spans of control
- High formalization
- cross functional teams
- Free flow of info
- Wide span of control
- Low formalization
- Structural decisions are influenced by several variables
- Orgs strategy - innovation or franchise
- Orgs size - Size affects structure, bigger size, more centralized and departmentalized
- Use of tech - communication = more productive
- Environmental uncertainty - could constrain decisions
- Imitation - base decisions on what others, competitors, are doing
Org Strategy (Contingency Factors)
Innovation or franchise
Orgs size (Contingency Factors)
- Size affects structure
- Bigger size, more centralized and departmentalized
Use of Tech (Contingency Factors)
Communication = more productive
Environmental Uncertainty (Contingency Factors)
could constrain decisions
Imitation (Contingency Factors)
Base decisions on what others are doing
Common Org Decisions
- Traditional - simple structure, functional, divisional structure
- Contemporary - team structures, matrix structure, project structure, boundaryless org
Simple Structure (Traditional Designs)
Org structure w/ low departmentalization, wide spans of control, authority centralized in a single person, little formalization
Functional (Traditional Org Design)
Groups similar or related job specialties together
Divisional Structure (Traditional Org)
- Org that contains separate business units or divisions
- Eg. HR, finance, R&D
Team Structure (Contemporary Org Decisions)
- Entire org is made up of work groups or teams.
- No mgmt authority.
Matrix Structure (Contemporary org decision)
- Assigns specialists from different functional departments to work on one or more projects.
- Report to 2 managers, project and department
Project Structure (Contemporary Org Decision)
- Employees continuously work on projects.
- No formal departments
- Fluid and flexible
Boundaryless Org (Contemporary Org Decisions)
- org is not defined by a chain of command
- Places no limits on spans of control and replaces departments w/ empowered teams
- FLEXIBLE AND UNSTRUCTURED