This chapter’s objectives are to: Explain how differentiation and integration define performance cultures, describe how managers vertically organize processes and teams to centralize decision making, describe how mangers horizontally organize processes and teams to distribute decision making throughout the organization,...
Trang 1SECOND EDITION
Chapter 10
Structuring
Trang 2§ Explain how differentiation and integration define
performance cultures
§ Describe how managers vertically organize processes and teams to centralize decision making
§ Describe how mangers horizontally organize processes and teams to distribute decision making throughout the organization
§ Show how managers combine vertical and horizontal approaches to organizational design in order to be more adaptive
Trang 3§ Hierarchy
where the top level holds the most power and resources
be successful
principles, core purposes, goals, and objectives
The Basics (p. 256)
Trang 4The Basics (cont.)
Figure 10.1
Trang 5§ Designing performance cultures (p. 256)
can, consciously or unconsciously, design a performance
culture
• Differentiation – process through which managers divide labor based on tasks and functions (p. 257)
• Integration – horizontal coordination between functions,
departments, and organizational activities
§ Organizations must strike a balance between differentiation and integration
The Basics (cont.)
Trang 6§ Structure must be modified to adapt to changes in the internal and external environments
• Organic organization – highly adaptive structure defined
by horizontal integration, distributed decision making, and employees with a high degree of generalization (p. 257)
• Span of control – the optimum number of direct reports
that a person can manage effectively
The Basics (cont.)
Trang 7§ Specialization (p. 258)
strengths, aptitudes, or skills
§ Coordination
efficient use of resources in pursuit of goals and objectives
The Basics (cont.)
Trang 8§ To give clarity to the integration process, managers
should rely on:
• Standardization – performance context where policies and procedures seek to create uniform results (p. 258)
• Formalization – degree to which policies and procedures determine specific jobs and functions
• Delegation – when a manager grants power and authority
The Basics (cont.)
Trang 9§ Vertical organization structure
channels
• Authority – implicit and explicit power that a manager or employee has to fulfill an organizational function or role
• Chain of command – predefined structural order of
authority that determines how decisions are made and
communicated
Vertical Approach (p. 259)
Trang 10Figure 10.2
Trang 11§ Corporate governance (p. 261)
and fulfillment of duties to stakeholders
§ Broker
outcomes for two or more parties
§ Organization chart
organized
Trang 12§ Vertical model at work (p. 261)
• Network organization – a group of independent companies that organize themselves to appear as a larger entity (p.
262)
§ Changing organizational structure
• Unityofcommand principle – each employee reports to
and is accountable to only one manager (p. 263)
Vertical Approach (cont.)
Trang 13§ Decentralized structure
information in order to make decisions and recommend
changes
§ Researching organizational structures
• Departmentalization – groups together processes and jobs based on functions, products or customers
Horizontal Approach (p. 264)
Trang 14§ Functional organization (p. 265)
through clear levels of authority
• Autonomy – level of individual discretion that an employee has to make decisions
§ Divisional organization
market segments or geography
§ Matrix organization
Horizontal Approach (cont.)