[9]_Managing_Organizational_Structure - MANAGING...

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M ANAGING O RGANIZATIONAL S TRUCTURE Organizing: How to use existing resources to implement the plan. Arranging jobs to create an efficient task system within the firm. D ESIGNING O RGANIZATIONAL S TRUCTURE: Organizational structure: is the formal system of task and reporting relationships that determines how employees use resources to achieve organizational goals. Organizational design: It is the process by which managers make a specific organizing decision that results in some kind of organizational structure. G ROUPING T ASKS INTO J OBS: J OB D ESIGN Job design: the process by which managers decide how to divide tasks into specific jobs. Job simplification: Reducing the number of tasks that each worker has to perform * Too much job simplification may reduce efficiency instead of increasing it, because employees might find their jobs boring and monotonous, and become demotivated. Job enlargement: Increasing the number of different tasks in a given job by changing the division of labour. * By increasing the range of tasks performed by an employee will reduce the boredom and fatigue and motivate the employee. Job enrichment: Increasing the degree of responsibility a worker has over his/ her job. 1. Empower employees to experiment new ways of doing the job 2. Encourage them to develop new skills 3. Allow employees to decide and give them responsibility 4. Allow employees to monitor and measure their own performance. G ROUPING J OBS INTO F UNCTIONS AND D IVISIONS Functional Structure: An organizational structure composed of all departments that an organization requires to produce its goods and services (i.e. marketing, accounting, HR, Int’l Management. Etc.) Advantages: - When people who perform similar jobs are grouped together, they can learn from watching one another, and become more specialized and can perform at a higher level. - Managers can monitor and evaluate their performance more easily. - It allows managers to create the set of functions they need for scanning and monitoring the task and general environment. Disadvantages: - When the organization grows domestic or international, functional managers will find it difficult to communicate and coordinate with one another.
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- Functional managers may become so preoccupied with supervising their own departmental goals and forget about the overall organization’s goals. Divisional Structures: Product, Geographic, and Market
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This note was uploaded on 01/07/2010 for the course TELFER ADM1300 taught by Professor Peterkoppel during the Fall '09 term at University of Ottawa.

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[9]_Managing_Organizational_Structure - MANAGING...

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