PowerPoint Presentation by Charlie Cook The University of West Alabama Business Essentials Ronald J. Ebert Ricky W. Griffin The Business of Managing 22.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
PowerPoint Presentation by Charlie CookThe University of West Alabama
Business Business EssentialsEssentials
Ronald J. Ronald J.
EbertEbertRicky W. Ricky W.
GriffinGriffin
Business Business EssentialsEssentials
Ronald J. Ronald J.
EbertEbertRicky W. Ricky W.
GriffinGriffin
The Business of ManagingThe Business of ManagingThe Business of ManagingThe Business of Managing2222
L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to:After reading this chapter, you should be able to:
1.1. Discuss the factors that influence a firm’s Discuss the factors that influence a firm’s organizational structure.organizational structure.
2.2. Explain specialization and departmentalization as two Explain specialization and departmentalization as two of the building blocks of organizational structure.of the building blocks of organizational structure.
3.3. Describe centralization and decentralization, Describe centralization and decentralization, delegation, and authority as the key ingredients in delegation, and authority as the key ingredients in establishing the decision-making hierarchy.establishing the decision-making hierarchy.
L E A R N I N G O B J E C T I V E S (cont’d)L E A R N I N G O B J E C T I V E S (cont’d)
After reading this chapter, you should be able to:After reading this chapter, you should be able to:
4.4. Explain the differences among functional, divisional, Explain the differences among functional, divisional, matrix, and international organizational structures and matrix, and international organizational structures and describe the most popular new forms of organizational describe the most popular new forms of organizational design.design.
5.5. Describe the informal organization and discuss Describe the informal organization and discuss intrapreneuring.intrapreneuring.
By understanding the material in this chapter, By understanding the material in this chapter, you’ll also be prepared to:you’ll also be prepared to: Understand your “place” in the organization that Understand your “place” in the organization that
employs youemploys you Be better equipped to create the optimal structure Be better equipped to create the optimal structure
for your own organization as a boss or ownerfor your own organization as a boss or owner
FIGURE 6.2FIGURE 6.2 Multiple Forms of DepartmentalizationMultiple Forms of DepartmentalizationFIGURE 6.2FIGURE 6.2 Multiple Forms of DepartmentalizationMultiple Forms of Departmentalization
Tall and Flat OrganizationsTall and Flat Organizations
Flat Organizational StructureFlat Organizational Structure Common in decentralized organizationsCommon in decentralized organizations Fewer layers of managementFewer layers of management Rapid communicationRapid communication Wide spans of control Wide spans of control
Tall Organizational StructureTall Organizational Structure Common in centralized organizations Common in centralized organizations Multiple layers of managementMultiple layers of management Slower communicationSlower communication Narrower spans of controlNarrower spans of control
The fear that subordinates don’t really know The fear that subordinates don’t really know how to do the jobhow to do the job
The desire to keep as much control as possible The desire to keep as much control as possible over how things are doneover how things are done
The fear that a subordinate might “show the The fear that a subordinate might “show the manager up” in front of others by doing a manager up” in front of others by doing a superb jobsuperb job
A simple lack of ability as to how to effectively A simple lack of ability as to how to effectively delegate to othersdelegate to others
Line AuthorityLine Authority The type of operational authority that flows up and The type of operational authority that flows up and
down the chain of commanddown the chain of command
Staff AuthorityStaff Authority Authority based on special expertise and usually Authority based on special expertise and usually
involves counseling and advising line managersinvolves counseling and advising line managers
Committee and Team AuthorityCommittee and Team Authority Authority granted to committees or work teams that Authority granted to committees or work teams that
play central roles in the firm’s daily operationsplay central roles in the firm’s daily operations
Forms of Organizational StructureForms of Organizational Structure
Functional StructureFunctional Structure Form of business organization in which authority is Form of business organization in which authority is
determined by the relationships between group determined by the relationships between group functions and activitiesfunctions and activities
Used by most small to medium-sized firms Used by most small to medium-sized firms structured around basic business functions structured around basic business functions (marketing, operations, finance)(marketing, operations, finance)
Advantages:Advantages: Specialization and smoother internal coordinationSpecialization and smoother internal coordination
Disadvantages:Disadvantages: Centralization, poor cross-functional coordination, and lack Centralization, poor cross-functional coordination, and lack
goods and services, engaging in research and goods and services, engaging in research and development, and selling products in whatever local development, and selling products in whatever local market is appropriate, without any consideration of market is appropriate, without any consideration of national boundariesnational boundaries
Organizational Design Organizational Design for the 21st Centuryfor the 21st Century
Team OrganizationTeam Organization Relies almost exclusively on project-type teams, with Relies almost exclusively on project-type teams, with
little or no underlying functional hierarchylittle or no underlying functional hierarchy
Virtual OrganizationVirtual Organization Has little or no formal structure, few permanent Has little or no formal structure, few permanent
employees, a very small staff, and a modest employees, a very small staff, and a modest administrative facilityadministrative facility
Learning OrganizationLearning Organization Integrates continuous improvement and employee Integrates continuous improvement and employee
learning and development while transforming itself to learning and development while transforming itself to respond to changing demands and needsrespond to changing demands and needs
Informal OrganizationInformal Organization Everyday social interactions among employees that Everyday social interactions among employees that
transcend formal jobs and job interrelationshipstranscend formal jobs and job interrelationships Advantages:Advantages:
May reinforce the formal organizationMay reinforce the formal organization
Disadvantages:Disadvantages: Can reinforce office politics that put the interests of Can reinforce office politics that put the interests of
individuals ahead of those of the firmindividuals ahead of those of the firm May communicate distorted or inaccurate informationMay communicate distorted or inaccurate information
Informal GroupsInformal Groups Groups of people who decide to interact among Groups of people who decide to interact among
themselves, sometimes about businessthemselves, sometimes about business
Organizational GrapevineOrganizational Grapevine The informal communication network that runs The informal communication network that runs
throughout the organizationthroughout the organization
IntrapreneuringIntrapreneuring Creating and maintaining the innovation and Creating and maintaining the innovation and
flexibility of a small-business environment within the flexibility of a small-business environment within the confines of a large, bureaucratic structureconfines of a large, bureaucratic structure