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Exam review—Monday, March 28 • Look at chapter outlines on MindTap Chapter 7 o Section 7-3—Organizational Structures o Functional Structure—a structure that organizes a firm in terms of the main activities that need to be performed, such as production, marketing, sales and accounting – STABLE ENVIRONMENT§Advantages: Works well for small businesses, businesses with a small number of products—best suited to firms where the most important aspect of competition is efficiency of production or functional expertise (i.e. economies of scale) • Creates efficiency and expertise, easy flow of communication, straightforward approach to supervision, reduced redundancy §Disadvantages: unable to coordinate between departments to react to changes in the business environment, many employees have a narrow view of company goals and are unable to see the bigger picture o Divisional Structure— a structure that groups diverse functions into separate divisions – HETEROGENEOUS ENVIRONMENT§some firms have different industries under their umbrellas that are just too different to be run any other way than silo’d—slide 34 §Advantages: Coordination among functions is much more fluid in a divisional structure than a functional structure, allows for more accountability §Disadvantages: core functions are repeated in each division, potential for competition between divisions, may have a lower level of functional expertise than a purely functional structure o Matrix Structure—divisional and functional managers for each employee to report to – COMPLEX ENVIRONMENT§Advantages: “managers find that they need technological expertise within functions and horizontal coordination across the functions” §Disadvantages: creates confusing and inefficient scenarios for managers working in a functional group and across divisions, requires and outstanding amount of coordination o Network Structure— a structure where “knowledge workers” are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization – VOLATILE ENVIRONMENT§tech firms, about being able to bring your key people in on any project, anywhere §Advantages: This structure adapts very quickly to environmental changes and can provide a strong competitive advantage §Disadvantages: low level of accountability, process duplication, expensive to invest in technologies necessary to connect a geographically dispersed team o Example used in class: Hewlett-Packard moved thru all of these o Know advantages, disadvantages, when each is appropriate— “don’t memorize table 7.1, UNDERSTAND it” o Be familiar with Rule of 150
§Rule of 150—over 150 employees, managers no longer know what individual employees do, employees no longer know what other employees do, a need for organization surfaces o Basic idea of division of labor—WRONG IN TEXBOOK—use slide §Vertical Specialization: how much an employee creates, executes, and administers activities in a certain area of the firm §Horizontal Specialization: the breadth of activities that are performed in a certain job §Level of division of labor is related to the expectation on how long employees will stay with the firm §Highly specialized jobs can help develop firm expertise and competency in a certain skill (advantage) but can lead to low satisfaction for a worker (disadvantage) if the work is tedious and repetitive which can lead to high turn over (but also efficient replacement training) o Coordinating mechanisms—know these §Bureaucratic (centralized control) vs clan approach (decentralized control) • Clan approach example: Zappos, Netflix o Organizational structures serve 3 main purposes 1. Defines the roles of the labor force 2. Coordinates activities between members 3. Identifies the borders of the firm and external relationship o Mutual Adaptation: the process by which firms impact the nature of their overarching industrial environment and adapt their organization in response to evolving contextual factors §Critically important in industries with constant change, like technology or fashion §Structure follows strategy—decisions should be aligned with the life-cycle stage of the firm
o Startup: less job specialization, heightened communication, broad decision rights and open boundaries—more formal structures, i.e. functional o Growth: emphasize on division of labor and specify distinct coordinating mechanisms to increase efficiency and control o Maturity: typically becomes more informal, less emphasis on coordination—more informal structures, i.e. decentralized, matrix structures
o Delegationàdecentralized, hierarchical à centralized o Ambidextrous organizations—stay flexible, its KEY! o Ambidextrous Firms: firms that make an effort to be efficient in current strategic operations when preparing for changes on the environmental horizon Chapter 8 o Outline—culture is so important and powerful, but not tangible so It’s hard to measure it o Culture: the way individuals in an organization uniquely and collectively think, feel and act OR “a pattern of shared basic assumptions that was learned by a group as it solved its problems…that has worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” o Helpful elements to deciphering a company’s culture—list §An appreciation of the company’s values/philosophy/purpose §An understanding of the group’s boundaries §An understanding of the company’s power structure §An understanding of the work rules and norms §An evaluation of the company’s reward and punishment system o Levels of culture §Artifacts: visible organizational structures, processes, languages, published list of values, artistic creations, technologies, and observable rituals and ceremonies §Beliefs and Values: the meanings that members of an organization attach to artifacts §Assumption: a behavior that stemmed from a belief held by a group that is no longer visible, but has become deeply embedded in the organization o How does culture develop—founder, leaders, teams o Determinants of culture—figure 8.1: people, formal organization, task requirements, leader o Organizational Commitment: the desired end result of socialization whereby employees become committed to the organization and its goals §Compliance: commitment to the firm based on fair exchange, such as pay for services §Identification: commitment to the firm based on a sense of belonging
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Name: MGMT 3000 Introduction to Management Lyons Exam 2 Review UGA
Description: Study guide contains key terms and an outline of "need to know" information organized by chapter
All information in the study guide was pulled from provided class notes, lecture, and the required textbook for this course. None of the information is my own.