MGT200_ch10_11 - MGT200: Chapter 10 Organizing as a...

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MGT200: Chapter 10 Organizing as a Management Function - Arranging people and resources together Organization structure: system of tasks, workflows, reporting relationships, communication linkages Formal Structures Organization chart: shows reporting relationships, arrangement of work positions - Positions, job titles, lines of authority and communication between them Shows: - Division of work - Supervisory relationships - Communication channels - Major subunits - Levels of management Informal Structures: unofficial relationships Traditional Organization Structures Departmentalization: grouping together people and jobs Functional Structures - Similar skills and tasks - Members work within area of expertise Advantages: - Economies of scale, efficient use of resources - Tasks consistent with expertise - High-quality technical problem solving - In-depth training and skill development - Clear career paths
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Disadvantages: - Cost containment - Product/service quality - Timeliness - Innovation - Functional chimneys problem: lack of communication & coordination across functions Divisional Structures - People who work on the same product, similar customers, located in the same area Advantages: - Flexibility in environmental changes - Coordination across functional departments - Clear point of responsibility - Focus on specific customers, products, regions - Ease in changing size Disadvantages: - Reduce economies of scale - Increase costs - Unhealthy rivalries (compete for resources) Product structures: group jobs related to product/service - Identify costs, profits, problems in market area Geographical structures: jobs performed in same location Customer structures: jobs serving same customers Process structures: jobs part of the same process (tasks related to each other) Matrix structures : combines functional and divisional structures Advantages - Co-operation across functions - Decision making at team level
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- Flexibility in changing operations - Better customer service - Performance accountability - Strategic management Disadvantages: - Power struggles - Task confusion, work priorities - Time-consuming Directions in Organization Structures
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This note was uploaded on 04/19/2008 for the course BUSINESS MGT200 taught by Professor Manjuris during the Winter '08 term at Ryerson.

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MGT200_ch10_11 - MGT200: Chapter 10 Organizing as a...

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