Of labor extensive record keeping control

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Unformatted text preview: command / hierarchy Rules bind all members of the organization. Fundamentals of Bureaucracy of Chain of Command B oss Rules & Regulations V ic e P r e s id e n t Set Up by Function S u p e r v is o r Communication = Communication Minimal Minimal E m p lo y e e Specialization and Departmentalization Specialization Skill Development Economies of Economies Scale Scale Good Coordination Lack of Communication Employees Identify with Employees Department Department Slow Response to Slow External Demands External Narrow Spets How much authority and control? Stay centralized where standardization is important, decentralize where standardization is unimportant decentralize Increased Uniformity Informed Decisions Less Duplication Worker Responsibility Maximum Control Few Layers/Faster Lots of Policies & Lots Procedures Procedures Loss of Control Many Layers/Slower Possible Duplication Span of Control Span Optimum number of subordinates a manager Optimum supervises or should supervise; supervises Usually between 7 and 15; Can be increased when Jobs are routine and/or low skilled Information technology Greater managerial experience Must be reduced when Jobs are unique and/or highly skilled Jobs require extended periods of face-to-face Jobs communication communication Little managerial experience Divisional Structure Divisional What does the bureaucratic, hierarchical paradigm do better? hierarchical a) Reduce costs b) Increase sales When do you use a given organizational structure? Use functional structure when the organization is small (less than 50 employees) and/or tightly focused on one product and one market; Use divisional structure when the organization has multiple products and/or markets; Use matrix structure when many different products and markets are served with the same resources (notably human capital) and products are highly customized (volume of one); Use self-managed teams when process and product are uncertain, or the problems to solve unique. Mechanistic vs. Organic Organizations Mechanistic Mechanistic organizations have: Organic organizations have: Specialized jobs and Broadly defined jobs and Specialized Broadly responsibilities; responsibilities; responsibilities; responsibilities; Precisely defined, unchanging Loosely defined, Precisely Loosely roles; frequently changing roles; roles; frequently A rigid chain of command Decentralized authority; Centralized authority Horizontal Horizontal Vertical communication communication; communication; Based on sequential and Based Based on reciprocal Based pooled interdependence pooled interdependence interdependence Organization centered Task centered Virtual Organizations Virtual A temporary networked organization made up of temporary replaceable firms that join and leave as needed; replaceable Reduces fixed costs Obtains needed expertise quickly Promotes flexibility Example: Li and Fung We act as an extension of your own business to We manage all aspects of your global supply chain. We take care of all vital aspects of the supply chain so that our customers - leading retailers and brands can focus on their customers.” can Takeaways Takeaways The principles of bureaucratic organizing are The authority, departmentalization, standardization and the use of hierarchies. hierarchies. While bureaucratic organizing is efficient and While efficient predictable, iit is also inflexible. predictable t inflexible...
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