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MNGT 3100 Chapter 7

Terms in this set (55)

organizational structure
refers to how work is coordinated between individuals and teams within an organization
- explains reporting relationships
- describes formal and informal communication channels
- sets the foundation for the type of decision-making used
centralization
formalization
hierarchical levels
departmentalization
building blocks of organization structure
centralization
formal decision making authority is held by a few people, usually at the top
decentralization
decision making authority is dispersed throughout the organization
formalization
the extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated
- written rules
- explicit regulations
high formalized
decision making is largely concerned with application of the appropriate predetermined rule, policy, procedure, or criteria
-makes employee behavior predictable
-reduces ambiguity
-provides direction to employees
advantages of formalization
-may reduce innovation
-employee motivation
-job satisfaction
-pace of decision making
disadvantages of formalization
tall hierarchical levels
- several layers of management between frontline employees and the top level
- fewer employees report to each manager
- greater opportunities for managers to supervise and monitor employee activities
flat hierarchical level
- few management levels
- larger number of employees reporting to each manager
- can lead to greater levels of freedom for each employee
tall hierarchy
employees at bottom have relatively narrow span of control
flat hierarchy
employees at bottom have relatively wide span of control
build an employee attitude of job involvement and ownership
advantage of flat organizations
- greater levels of role ambiguity
- may not satisfy job security needs to employees
- limited advancement opportunities
disadvantages of flat organizations
self-actualization
esteem
love/belonging
safety
physiological
Maslow's Hierarchy of needs
Departmentalization
is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks
functional structures
organizations using __________ group jobs based on similarity in functions
- marketing, manufacturing, finance, accounting etc.
divisional structures
in organizations using ____________ departments represent the unique products, services, customers, or geographic locations the company is serving
- each unique product or service the company is producing will have its own department
functional structure
a design that groups people together on the basis of their common expertise and experience or because they share the same resources
divisional structure
a design that groups each organizational function into a division. these divisions can correspond to either products or geographies
autonomous
(self-governing)
unlike functional areas, divisions are more __________, each with its own top executive - often a vice president - and typically manage their own hiring, budgeting and advertising
Functional Structure
Best for a company that does not have a large number of products and services requiring special attention
Functional Structure
Employees are specialists
Functional Structure
Perform better in stable environments
Divisional Structure
More agile
Divisional Structure
Perform better in turbulent environments
- creating divisions around a single focus allows personnel to better coordinate communicate and cooperate, resulting in greater agility
Divisional Structure
Employees are generalists
Divisional Structure
an employee who handles the event planning, market research, coordinate relations with agencies, and other responsibilities associated with a product
Functional Structure
an employee whose job is to handle the market research of all products
Mechanistic Structure
Organic Structure
- The four building blocks of organizational structure often coexist
- For simplicity, we can group these into two types of organizational structures depending on how the elements are arranged
mechanistic structure
- those structures that resemble a bureaucracy - highly formalized and centralized
- Rigid and resist change
- unsuitable for innovativeness and limit individual autonomy and self-determination
- maximizes efficiency and minimize cost
mechanistic structure
most organizations follow a __________ structure
organic structure
- those structures that are flexible and decentralized
- low levels of formalization
- communication lines are more fluid and flexible
- employee job descriptions are broader
- related to higher levels of job satisfaction
- conducive to entrepreneurial behavior and innovativeness
Mechanistic
McDonalds is an example of a _________ structure
Organic
Google is an example of a _________ structure
Matrix structure
A structure in which people and resources are grouped in two ways simultaneously by function and by project or product
Matrix Structure
(What Structure?)
a group of engineers each working on a different product
- responsible for designing the product within respective product division
- Also reports to the R&D Manager, who is responsible for the employee's overall performance, pay, and professional development
Organizational change
the movement of an organization from one form to another
- organizational change can take many forms
- Workplace demographics
- technology
- globalization
- changes in market conditions
- growth
- poor performance
Why do organizations change?
Workplace Demographics
- organizational change is often a response to changes in the environment
- for example, the average age of the U.S. workforce is increasing as Baby Boomers near retirement
- How might this affect organizations?
--Preferences in type of benefits may change
--Healthcare and pension cost with increase
Technology
Sometimes change is motivated by rapid changes in _____________
Changes in Market Conditions
- Market changes may also create internal changes as companies struggle to adjust
- Example: changes in health consciousness affecting the fast food industry and tobacco industry. shift to healthier alternatives
Employee resistance
what is the primary reason why organizational change fails
active resistance
the most negative reaction to a proposed change attempt
passive resitstance
being disturbed by changes without necessarily voicing these opinions
compliance
going along with proposed changes with little enthusiasm
enthusiastic support
defenders of the new way and those who actually encourage others to give support to the change effort
Why people resist change
-Disrupted habits
-Personality
-Feelings of uncertainty
-Fear of failure
-Personal impact of change
-Prevalence of change
-Perceived loss of power
- Exhaustion (self-control depletion)
- Cognitive dissonance
current beliefs
Resistance to change is also a function of the individuals ___________________
Cognitive dissonance
the mental stress or discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, or is confronted by new information that conflicts with existing beliefs, ideas, or values
improving the status quo
resistance to change may prevent.....
Unfreeze
Change
Refreeze
Lewin's three-stage process of change
Unfreeze
(Lewin's) ensures that employees are ready for change
- communicate a plan for change
- develop a sense of urgency
- build a coalition
- provide support
- allow employees to participate
change
(Lewin's) execute the intended plan
- continue to provide support
- create small wins
- eliminate obstacles
Refreeze
(Lewin's) ensures that the change becomes permanent
- share concrete results with employees
- publicly recognize those who are giving support to the change effort
- set up a dynamic feedback loop
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