L22-20101124

L22-20101124 - Authority allocation Effective Team...

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1 Effective Team Management MGMT121 Lecture 22 24 Nov, 2010 Authority allocation
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Critical thinking question Would an organic or mechanistic structure be appropriate for a large department store? Explain. 2
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Suggested approach A large department store should utilize a mechanistic structure. Stable environment retail business is a relatively stable environment. Uncertainty is low. In department stores, most decisions can and should be made by top managers within a clearly defined hierarchy of authority Routine technology task variety is low and task analyzability is high (explain terminologies). Employee activities should be governed by extensive rules and standard operations procedures 3
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4 1. Matrix structures and allocation of authority 2. Differences between groups and teams 3. Formal and informal groups 4. Advantages and disadvantages of teams Today’s agenda
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5 By the end of today’s lecture, you should be able to: Explain matrix and team-based structures Explain the three ways of allocating authority Understand not all groups are teams Explain when teams are appropriate Explain the troubles with teams
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6 Job design Organization design What jobs / tasks will be done by whom ? How to group the jobs / tasks together in a co-ordinated and integrated manner? Job simplification Job enlargement Job enrichment Functional Structure Divisional Structure Matrix & product Team designs Product Market Geographic (textbook, pp.103-106, 262-266)
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7 What is a functional structure? A function is a group of people, working together, who possess similar skills or use the same kind of knowledge, tools or techniques to perform their jobs A functional structure An organizational structure organizes employees around specific knowledge Creates specialized pools of talent that typically serve everyone in the organization (textbook, p.262)
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8 General Manager Logistics Department Sales Department Accounts Department IT Department HR Department Warehouse Dept Packaging Dept Transportation Dept Example – Functional Structure
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9 Functional structure: advantages 1. Efficiencies from putting together similar specialties and people with common skills and knowledge. E.g. cost-savings, minimal duplication of people and equipment 2. Facilitate faster learning through observations 3. Encourage cooperation and coordination within a function 4. Easier for managers to monitor and evaluate performance of workers in the same functional area
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10 Silo-mentality (insulated, little understanding of what others are doing) Limited views (or even lose sights) of organizational goals Poor communication across functional areas Functional structure: disadvantages This is a silo (textbook, p.262)
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15 What are divisional structures?
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This note was uploaded on 01/28/2011 for the course MGMT 121 taught by Professor Karenlee during the Fall '10 term at HKUST.

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L22-20101124 - Authority allocation Effective Team...

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