Org structure: How job tasks are formally divided, grouped and coordinated. Managers need their org structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.-Work SpecializationWork specialization: also known as division of labor, to describe the degree to which activities in the org are subdivided into separate jobs-An increase in efficiency and productivity -Managers can increase productivity by enlarging the scope of job activities, give employees a variety of activities to do, allow them to do a whole and compete job, put them with interchangeable skills, increased employee satisfaction.-What is Organizational Structure?DepartmentalizationDepartmentalization: the basis by which jobs in an organization are grouped together-Functions department: hospitals devout to medical research, surgery, ICU-Advantage: efficiencies gained from putting like specialists togetherProduct or service department: tide, pampers, charmin, and pringles.-Advantage: in accountability for performanceGeography or territory: sales function may have western and eastern regions. Customers are scattered over a large geo area and have similar needs-Customer department: customers in each department have a common set of problems and needs best met by having specialists for each.-Chain of CommandChain of command: an unbroken line of authority that extends from the top of the org to the lowest echelon and clarifies who reports to whom. Authority and unity of command are part of the chain of command.-Authority: refers to the rights inherent in a managerial position to give orders and expect them to be obeyed. -Unity of command: the principle that helps preserve the concept of an unbroken line of authority. One person should only have one superior to whom he or she is directly responsible.-Self-managed, cross-functional teams, and the creation of multiple bosses hold less relevance to the 2 chain commands.-Chapter 15Thursday, April 23, 201511:31 AM Org Behavioral Page 1Span of ControlSpan of control: determines the number of levels and managers an org has. All things being equal, the wider or larger the span, the more efficient the org.-When supervisors no longer have time to provide the necessary leadership and support, they reduce effectiveness and employee performance suffers.-5 or 6 employees should be enough for a manager to maintain close control.-3 disadvantages-They're expensive because of added levels of orgs.a.They make vertical comm. In the org more complexb.Narrow spans encourage overly tight supervision and discourage employee autonomy.c.Invest in employee training to ensure performance in wider spans-Centralization and DecentralizationCentralization: the degree to which decision making is concentrated to a single point in the org.-Centralized orgs: top managers make all the decisions, and lower-level managers carry out their directives.a.The rights are inherent in a position-Research and development are in a single office-Decentralized orgs: decision making is pushed down to the managers closest to the actionb.Problems are acted more quickly and provide more input into decisions-Innovation, research, and development are in multiple locations.-Formalization:Formalization: the degree to which jobs within the org are standardized.-If a job is highly formalized, the incumbent has a minimal amount of discretion over what to do, when, and how to do it.-When formali. is low, job behaviors are unprogrammed, and employees have freedom to exercise discretion in their work-Standardization eliminates the possibility of employees engaging in alternative behaviors, but it removes the need for employees to consider alternatives.-Common Org DesignsThe Simple StructureSimple structure: An org structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formali.-It is a flat org. - a loose body of employees, 2 or 3 vertical levels, and one individ in whom the decision-making authority is centralized.-Fast, flexible, and inexpensive to operate, and accountability is clear.-WEAKNESS: increasingly inadequate as an organization grows because of low formali and high centralization.-The BureaucracyStandardization is the key concept for all bureaucracies. -Bureaucracy: an org structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.-The ability to perform standardized activities in a highly efficient manner.-Standardized operations and high formalization allow decision making to be centralized.-WEAKNESS: obsessive concern with following the rules, little need for innovative and experienced decision makers.-Matrix Structure Org Behavioral Page 2Matrix StructureMatrix structure: an org structure that creates dual lines of authority and combines functional and product departmentalization. -Found in advertising agencies, aerospace firms, research and development-STRENGTH: minimizes the number necessary while allowing the pooling and sharing of specialized resources across products, provides clear responsibilities for all activities related to a product, facilitate coordination when the org has a # of complex and interdependent activites.-DISADVANTAGE: difficult to coordinate the tasks of diverse functional specialists on time and within the budget, there is confusion , tendency to foster power struggles, and stress it places on individ.-Virtual OrgVirtual Org: aka network, modular org. A small, core org that outsources its major business functions. Structural terms: the virtual org is highly centralized, with little or no departmentalization.-A small group of executives whose job is to oversee directly any activities done in-house and to coordinate relationships with the other orgs that manufacture, distribute, and perform other crucial functions for the virtual org.-NOTE: the dotted line represents the relationships maintained under contracts. Managers in virtual structures spend most of their time coordinating and controlling external relations, typically by way of computer network links.ADVANTAGE: flexibility, allows individs to express innovative ideas with little money, save a great deal of money by eliminating