MGT 304 Principles of Management

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MGT 304 Principles of Management

• Organizational Structure

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MGT 204

• Organizational Structure-(text) the
  distributions, along various lines, of people
  among social positions that influence the role
  relations among these people.

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MGT 204

• Another definition-The manner in which an
  organization divides its labor into specific
  tasks and achieves coordination of these tasks
• In English-Coordinating efforts through division
  of labor
• WJ Patterson

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MGT 204

• 3 functions of Organizations
• To achieve organizational goals
• To minimize or regulate the influence of
  individual variations on the organization
• The settings in which power/authority is
  exercised.

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MGT 204

• Division of Labor
• Vertical Division
• Primarily concerned with appropriating authority
  for planning and decision making
• Who gets to tell whom what to do

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MGT 204

• 2 Key issues to Vertical Division of Labor
• Autonomy/Control As the number of levels of
  management increase, the authority to make
  decisions get less and less. The flatter the
  organization, the more authority.
• Communication-More vertical division, the more
  communication is critical and can be harder to
  achieve.

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MGT 204

• Horizontal Division of Labor
• Groups the tasks into jobs, then to departments
• Organizations differ from one to the next as to
  how they divide the labor into jobs.
• Based on need, resources and talent available

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MGT 204

• President
• Vice Presidents
• Senior Managers
• Supervisors
• Workers
• Making Goods Selling Goods Handling
  Finances HR Acctg

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MGT 204

• 2 Key Issues in Horizontal Division
• Job Design
• Differentiation-the separation of functions or
  departments to differ in terms of goals, time
  spans and personalities
• Coordination is the KEY

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MGT 204

• Departmentation-the assignment of jobs to
  departments
• Methods of Departmentation
• Functional employees with closely related
  skills and responsibilities are assigned to the
  same department
• Product Departments are formed on the basis of
  a particular product, line or service

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MGT 204

• Departmentation (cont.)
• Matrix Employees remain members of a functional
  department while also reporting to a product or
  project manager.
• Geographic-Relatively self contained units
  deliver a product in a specific territory
• Customer-Same as geographic, but to specific
  customers

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MGT 204

• 5 Basic Methods of Coordinating Divided Labor
• Direct Supervision-Traditional form.
  Coordinating the efforts of subordinates through
  chain of command.
• Standardization of Work Process-Routine jobs are
  coordinated by technology. Exp-McDonalds, making
  a burger
• Standardization of Outputs-BUDGET, BUDGET, BUDGET

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MGT 204

• Continued
• Standardization of Skill-Most common in
  professionals Technicians. Example-A surgery
  team can coordinate its work without much verbal
  communication. Each person has a task and knows
  when and how to perform it.
• Mutual Adjustment-People wearing different hats
  and adjusting each day.

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MGT 204

• Other Methods
• Integration-The process off attaining
  coordination across department lines
• Liaison Role-Person assigned to help achieve
  coordination between their department and another
• Task Force-Temporary groups set up to solve
  coordination problems across department lines

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MGT 204

• Other Methods (cont.)
• Integrators-Organizational members permanently
  assigned to facilitate coordination between
  departments

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MGT 204

• Traditional Structural Characteristics
• Span of Control-The number of subordinates
  supervised by a superior
• Flat Organization-Few levels of authority
• Tall Organization-many levels of authority
• Formalization-Work roles are HIGHLY defined
• Centralization-localized decision making power

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MGT 204

• Mechanistic Structures-Structures characterized
  by tallness, specialization, centralization, and
  formalization.
• Organic Structure-Structures characterized by
  flatness, low specialization, low formalization,
  and decentralization

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MGT 204

• Impact of Size-As size increases,
  decentralization decreases, formalization
  increases, increased need for coordination and
  control.
• Downsizing-Intentional reduction of work force
  with the goal of improving efficiency or
  effectiveness.

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MGT 204

• Bureaucratic Model-Designed by Max Weber. 5
  Characteristics
• Specialization and Division of Labor
• Rules and Procedures
• Authority
• Impersonality of office
• Promotion by merit

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MGT 204

• Problems with bureaucratic model
• Lots of RED TAPE
• Dominance of Authority
• Reduced Flexibility
• People usually do not rise due to merit, but rise
  because of seniority

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Puzzle of the Week

• What do the following words have in common?
• LIFE SHED SONIC VOID POLKA SOFA
• WIFE POND SOLID TRIED ROLE SONG
• SPONGE WRONG UPON ZONE