MGMT 310 11-4_notes
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This 2 page Class Notes was uploaded by Garrett Gillett on Monday February 9, 2015. The Class Notes belongs to 310 at Kansas taught by Spencer in Fall. Since its upload, it has received 38 views. For similar materials see Management in Business at Kansas.
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Date Created: 02/09/15
Garrett Gillett MGMT 31011am 11414 Organizational Technology and Structural Differentiation p 469481 Designing Organizational Structure 0 Organizational structurethe formal sys of task and reporting relationships that controls coordinates and motivates employees so that they cooperate and work together to achieve an organization s goals 0 Organizational designthe process by which managers select and manage various dimensions and components of organizational structure and culture so that an organization can achieve goals 0 Contingency theoryorganizational structure should be designed to match the set of contingenciesfactors or conditionsthat cause an organization the most uncertainty 0 The Organization s Environment The Organization s Technology HR and the Employment RelationshipOrganizational design Organizationalenvironment 0 Changes in the social cultural and global environment affect OB o More quickly forces in the environment are changing the greater the uncertainty within it and the greater are the problems of accessing the resources an organization needs to perform at a high level such as additional computers machinery and skilled employees 0 Technology the combo of skills knowledge tools machines computers and equipment used in the design production and distribution of goods and services 0 Task variety is the of new or unexpected problems or situations that a person or functional group encounters while performing tasks orjobs 0 Task anayzabiity the degree to which programmed decisions and solutions are available to people or functional groups to solve the kind of problems they encounter o Smallbatch technologya method used to produce small quantities of customized one of a kind products based on the skills of people who work together in small groups 0 Massproduction a method of production using automated machines programmed to perform the same operations time and time again 0 Continuousprocess technology a method of production involving the use of automated machines working in sequence and controlled thru computers from a central monitoring stations 0 HR and the Employment Relationship 0 A 3rOI important contingency affecting an organization s choice of structure and how to manage its functional activities is the characteristics of its HR and the nature of the employment relationship 0 More highly skilled an organization s work force or the more a company relies on empowered work teams to nd ways to improve performance the more likely are employees to work together in groups or teams to perform their tasks 0 Organic and mechanistic structures 0 Organic structuredesigned to promote exibility so that employees can initiate change and adapt quickly to changing conditions 0 Mechanistic structuredesigned to induce employees to behave in predictable accountable ways Grouping jobs into functions and divisions Function a group of people who perform the same types of tasks or hold similar positions in an organization 0 Functional structuregroups together people who hold similar positions perform a similar set of tasks or use the same kinds of skills 0 Advantages of a functionalall organizations group their activities by function to some extent to capture the bene ts that result from the division of labor and specialization 0 Coordination advantagespeople grouped together according to similarities in their positions can easily communicate and share info w each other 0 Motivational advantageswhen employees are grouped together by function supervisors are in a good position to monitor individual performance reward hi performance and discourage social loa ng Functional supervisors nd monitoring easy bc they usually posses hi level of skill in the particular function Functional grouping can lead to development of norms values and group cohesiveness that promote hi performance Also allows group members to monitor and control one another s behavior and performance levels Grouping by function creates a career leader to motivate employees and supervisors are typically employees who have been promoted bc of their superior performance 0 Disadvantages of a functional structure 1 When the range of products or services that a company produces increases its various functions can begin to experience dif culties 2 Coordination problems may arise As organizations attract customers w different needs it may nd it hard to service these different needs by using a single set of functions 3 As companies grow they often expand their operations nationally Servicing the needs of diff regional customers w a single set of manufacturing sales or purchasing functions become very dif cult Divisional structures Product Market and geographic o Divisiona group of functions created to allow an organization to produce and dispose of a particular kind of good or service to customers 0 Divisional structuregroups employees into functions but who then focus their activities on making a particular product or serving a speci c type of customer 0 Product structuredimensional organizational structure that groups functions by type of product so that each division contains the functions it needs to service the products it produces CEOCorporate managerComputer division Aerospace division Appliance division 0 Market structuregroups functions by types of customers so that each division contains the functions it needs to service a speci c segment of the market CEOCorp ManagerCorporate customers Small business customers Individual customers Govt agencies 0 Geographic structuregroups functions by region so that each division contains the functions it needs to service customers in a speci c geographic area CEOCorp managerWestern Eastern Southern Central region Advantages of a divisional structure 0 Coordination advantagesbc each division contains its own set of functions functional groups are able to focus their activities on a speci c kind of good service or customer This narrow focus helps a division create highquality products and provide highquality customer service 0 Motivational advantagesthis structure makes it easier for organizations to evaluate and reward the performance of individual divisions and their managers and reward them in a way that is closely linked to performance Corporate mgmtset of managers whose responsibility is to supervise and oversee the divisional maangers Disadvantages of a divisional structure 1 bc each division has its own set of functions the operating costs of managing an organization increase a Operation costs cost associated w managing an organization 2 Communication may suffer bc so many managers it is hard to communicate effectively 3 Divisions may start to compete for organizational resources and pursue their own goals at the expense of organizational goals Matrix structurean organizational structure that simultaneously groups people by function and by product team 0 Coordination adv 1 needs to develop new products very rapidly 2 needs to maximize communication and cooperation between team members Innovation and creativity are key to the organization s continuing success 0 Motivational adv Provides a work setting giving employees freedom and autonomy over their work activities Job design in uences work attitudes and behaviors matrix allows for motivation and encourage work behaviors that enhance quality and innovation 0 Disadvantages of matrix structure I Can increase role con ict and ambiguity high levels of stress constantly moving from one team to another
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