EM 760 lec 3 - 08 - student slides

EM 760 lec 3 - 08 - student slides - Engineering Management...

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1 Engineering Management Organization Structure and Systems Session 3 January 22, 2008 Administrative Issues • Student Profiles • Organizations • Case Study • Agenda for Lecture 3 Organization Structure Design - Definitions • Division of Labor – degree of specialization • Organizational Role – task related behaviors • Function – subunit of similar skilled people • Division – subunit responsible for a product/service
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2 Organization Structure Design - Definitions • Authority – power to hold people accountable and to make decisions • Control – ability to coordinate and monitor organizational processes • Hierarchy – classification of authority and rank • Organization Chart – pictorial of the hierarchy Organization Chart • Horizontal lines • Vertical lines • Size, Shape, Design Differentiation and Integration • Vertical Differentiation – authority and reporting relationships linking roles and subunits • Horizontal Differentiation – grouping of tasks into roles and subunits • Integration – coordinating tasks, functions, and units to work together to meet the organization goal
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3 Integrating Mechanisms • Hierarchy • Direct Contact • Liaison Roles • Task Force • Team • Integrating Role • Integrating Department Balancing Differentiation and Integration • Complex org – high differentiation and high integration • Differentiation helps develop core competencies • Integration needed for achieving the goal • Decision – balancing specialization vs. integrating mechanisms Authority • Centralization – when authority to make decisions is retained at the top or in a single unit • Decentralization – when authority to make decisions is distributed throughout the organization
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4 Centralization Advantages • Standards • Focus on goals • Control Disadvantages • Overloaded managers • Slow response • Little time for long-term strategic planning • Discourages risk taking Decentralization Advantages •F lex ib le • Responsive • Closer to customer and product • Innovation is fostered • Division of authority similar to labor Disadvantages • Loss of control • No standard process • No sharing lessons learned
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This note was uploaded on 11/22/2009 for the course EM 760 taught by Professor Utley during the Spring '08 term at University of Alabama - Huntsville.

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EM 760 lec 3 - 08 - student slides - Engineering Management...

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