Chapter 9

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Organizational Structure

the vertical and horizontal configuration of departments, authority, and jobs with a company

Vertical Structure

answers questions such as "who reports to whom?", "who does that?", "where is the work done?"

Organizational Structure

the collection of activites that transforms inputs into outputs that costumers value

Organizational Process

asks "how do things get done?"

Departmentalization

a method of subdividing work and workers into separate organizational units that take responsibilities for completing particular tasks

Functional Departmentalization

organizes work and workers into separate units responsible for business functions or areas of expertise; most common form of departmentalization and typically used for small businesses or businesses starting out

Ex: accounting dept, sales, marketing, production, HR, etc..

Product departmenalization

organizes work and workers into separate units responsible for producing particular products or services; organized into product categories

Customer departmentalization

organizes work and workers into separte units responsible for particular kinds of customers

Geographic departmentalization

organizes work and workers into separte units responsible for doing business in particular geographic areas

Matrix departmentalization

a hyrbid structure in which two or more forms of deparmentalization are used together; most common matirx cmobines the product and functional forms of deparmentalization

Ex: Procter & Gamble

Matrix Departmentalization

employees usually report to two bosses, lead to much more cross functional interaction, require significant coordination between managers

simple matrix

managers in different parts of the matrix negotiate conflicts and resources directly

complex matrix

matric in which specialized matrix managers and departments are added to the organization structuer; managers from different departments report to a matrix managers to resolve conflicts

authority

the right to give commands, take action, and make decisions to achieve organizational objectives

chain of command

the vertical lines of authority that clarifies who reports to whom

people higher in the chain of command

have the right, if they so choose, to give commands, take action, and make decisions concerning activities occuring anywhere below them in the chain

unity of command

workers should report to just one boss; matrix departmentalization violates this rule-of-thumb

line authority

the right to command immediate subordinates in the chain of command

delegation of authority

assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsibile

centralization of authority

the location of most authority at the upper levels of the organization

decentralization

the location a significant amount of authority in the lower levels of the organization; workers are authorized to make decisions are solve problems on their own; has faster decision making and happier customers and workers

standardization

solving problems by consistently applying the same rules, procedures, and processes

job specialization

occurs when a job is composed of a small part of a larger task or process; typically easy to do, simply, low variety, and high repition

Ex: McDonalds workers 1. "May I take your order please" 2. "Drive to the second window 3. Take the money make change

job rotation

periodically moving workers from one specialized job to another to give them more varitety and the opportunity to use different skills

Ex: secretary who only answers phones could be asked to do some filing

job enlargement

increasing the number of differnet tasks that a worker performers within one particular job; often viewed as just more work and more stressful to the employee

Ex: having a mirror attacher at a car dealer clean and check mirror power controls

job enrichment

increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work

job characteristics model

an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to postive work outcomes

redesigning jobs->core job characteristics->critical psychological states->personal and work outcomes

internal motivation

motivation that comes from the job itself rather than from outside rewards

skill variety

the number of different activieties performed in a job

task identity

the degree to which a job is perceived to have a substantial impact on others inside or outside the organization

autonomy

the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the work

feedback

the amount of information the job provides to workers about their work performance

redesigning tasks

combining tasks, forming natural work units, establishing client reslationships, vertically loading the job, opening feedback channels

on the JCM

core job characteristics

skill variety, task identiy, task significance, autonomy, feedback

On the JCM

critical psychological states

experienced meaningfulness of the work, experienced responsibility for the outcomes of work

On the JCM

personal and work outcomes

high internal work motivation

On the JCM

vertical loading

pushing some managerial authority down to workers

mechanistic organizations

characterized by specialized jobs and responsibilities; percisely defined, unchanging roles, and a rigid chain of command based on centralized authority and vertical communication; works best in stable, unchanging business environments; concerned with organization structure

organic organizations

characertized by broadly defined jobs and responsibility lossely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge; works best in dynamic, changing business environments; concerned with organization process

intraorganizational process

the collection of activities that take place within an organization to transform inputs into outputs that customers value

reengineering

the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, comtemporary measures of performances, such as costs, quality, service and speed

task interdependence

the extent to which collective actions is regulated to complete an entire piece of work

three kinds of task interdependence

pooled interdependence, sequential interdependence, reciptocal interdependence

pooled interdepence

each job or deparment independentlycontributes to the whole

sequential interdependence

work must be performed in succession, as one group's or job's outputs becomes the inputs for the next group or job

reciprocal interdepedence

different jobs or groups work togetherin a back-and-forther manner to complete the process

empowering workers

permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions

empowerment

feelings of intrincisc motation, in which workers percieve their work to have impact and meaning and perceive themselves to be competent and capable of self-determination

interorganizational process

a collection of activites that occur among companies to transform inputs into outputs that customers value

when you buy a Liz Claiborne outfit, you are buying from the suppliers and not Liz Clairborne

modular organizations

an organzaiton that outsources noncore business activities to outside companies suppliers, specialists, or consultants

virtual organization

an organization that is part of a network in which many companies share skills, costs, and capabilities marketing and customers to collectively solve customer problems

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