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Related Flashcards
Cards In This Set
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Key Question: To what degree are articles subdivided into separate jobs?
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Work Specialization: how specialized are peoples jobs?
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Key Questions: On what basis will jobs be grouped together?
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Departmentalization: How can you group jobs into meaningful groups?
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Key Question? To whom do individuals and groups report to?
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Chain of command: Who's going to supervise those groups?
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Key Question? How many individuals can a manager efficiently and effectively direct?
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Span of control: How many people are going to directly report to me?
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Key Question: To what degree will there be rules and regulations to direct employees and managers?
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Formalization: How many rules and regulations in general are there?
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Centralization VS Decentralization
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Centralization- top management makes decisionsDecentralization- All employees can make important decisions. Who gets to make decisions regarding authority?
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Mechanistic Model HRCNCH
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 Most common and most traditional High specialization Rigid departmentalizationClear chain of commandNarrow spans of controlCentralizationHigh Formalization |
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Organic Model CCFWDL
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 Newer way of organization Cross-functional teamsCross-hierarchial teamsFree flow of informationWide span of controlDecentralizationLow formalization |
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Innovation Strategy: _________ structure
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Organic: loose structure; low specialization, low formalization, decentralized
Like 3M |
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Cost Minimization Strategy: ____________ structure
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Mechanistic: Tight control, extensive work specialization, high formalization, high centralization
Like Walmart |
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Imitation Strategy: __________ structure
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Mechanistic and Organic: mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings
Like Barns & Noble Online- try to take the best market leader and approve upon |
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Functional Departmentalization
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 Units grouped by basic business function PresidentProduction, marketing/sales, research development, administration Problem: silos- employees start to form work groups |
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Product Departmentalization
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 Units groups by product lines or groups of products President:Healthcare divisionEntertainment divisionConsumer division Multinational or transnational corporation. Departments are still functional but are grouped from within. Why would you have 3 marketing departments? Suppose to improve quality of customer service. Disadvantage: Costs are higher, 3 marketing departments instead of 1. Some duplication of effort, all 3 marketing groups will develop product awareness, will duplicate efforts or conflict with each other |
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Matrix Organizations
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Superimposes one departmentalization on a second
President:2 VP Production: Family Car Department Light Trucks Department2 VP Marketing: Family Cars and Light Trucks2 VP Finance: Family Cars and Light Trucks You have both of the departmental organizations. You have 2 customers and 2 different products. You have multiple production, marketing, and finance departments. To avoid duplication: you have somebody that is in charge of coordinating production, marketing, and finance departments. Trying to get the best of both worlds. Eller is set up as a matrix organization. Marketing, Management, Accounting, Finance, etc. – grouped by function needs. Also has undergraduate program and MBA program- targeted towards different customers- grouped by product needs. |
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A Structure Problem
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President:PC DivisionMain Frame Division
IBM structure in early 1980s. PC division and main frame computer division. PC Division started directing customer to competitors for main frame computing instead of to the main frame computing department. This was caused because of competition. To solve problem: created a matrix and implemented arbitrators such as corporate sales, corporate marketing and value-added service departments that would direct calls to appropriate division |
