Management 301 Exam 3 Study Guide Chapter 8 Organization Structure Design Human Body DNA Heartbeats Roads Olympics Sochi 2014 Domino s Internet What is Structure Dictionary Definition Anything composed of parts arranged together in some way Structure is everywhere Family sports video games buildings Penn State planes pizza joints etc Don t forget the process of Management Planning Organizing Leading Controlling organization is in the process of management and is the first step in structure Organizing Arranging tasks people and other resources to accomplish the work requires structure Divide up work arrange resources and coordinate activities Business Structure comes in 2 forms 1 Formal 2 Informal Clicker Question Why should we care about structure in organizations we join It helps us known where we fit in Ex Google Founders 1998 Larry Page and Sergey Brin and Eric Schmidt Culture and structure at Google are things that are going to work and did work Strategy to provide structure First thing to do was provide an offsite then have staff meetings quarterly objectives that are reviewed Schmidt company works very well and needed a little structure and list making 1st Form of Business Structure Formal Organizational Charts Divide up work Arrange resources Coordinate activities CEO at the top Vice Presidents Managers The Rest Xerox 2011 Organizational Chart page 157 in notebook see chart Ursula Burns CEO Not bold line reporting Bold staff Line Profession Responsible for core business functions think developing new products making products and selling products Staff Profession Play important support roles but CIO directly brings in revenue think accounting HR EHS legal Manufacturing manager line Marketing employee line involved in selling Legal Department staff Human Resources Manager staff Employee Health environment and safety manager staff Organizational Structure President Vice President Corporate Relations Events Projects Finance Human Resources Marketing What Do Organizational Charts Provide Chain of Command Span of Control Communication Flow Division of Work Major Units Staff vs Line Levels of Management Ex of Chain of Command Startrek video Captain and commander tell each other what they think of each other and then Captain asks commander to fly the ship Ex of Span of Control Tall VS Flat Tall a lot of levels tight more beaurocratic limited span of control Flat Manager with broad range flexible ex mgmt 301 CEO Michael Dell of Dell Computer Restructuring Organization structure that was unwieldy 20 folks reporting into the CEO and the organization needed to be changed Every person sat down together and decided what they needed to do and why Folks saw that it was the right thing to do and it needed to be done They didn t waste a lot of time and they made it happen In the U S business 4 general managers were reporting to the CEO and didn t have to The structure is now changed and simplified with new positions in areas they are trying to invest and build new capability Ex new global services organization and investing a lot in that because it s a high growth opportunity for the future Clicker Question You work at J J and share an issue with your Boss who in turn shares it with their boss etc This represents what about structure Chain of Command 2nd Form of Business Structure Informal There are Pros and Cons to informal structure Support groups help make decisions Smeal is anti technology which has its own pros and cons social network analysis Structural Types How Business Organizes Functional Divisional Matrix Team Network and back to functional again Ron s Business Journey An Act of Fiction Bean bag business hugs bean bag commercial Needs structuring Functional Structure ex Will Smith CEO VP Finance VP Operations VP Marketing VP Accounting Departments Line Staff Line Staff Departments Line Staff Line Staff Benefits of Functional Structure Economies of Scale Broad Expertise Training for Skill Functional Career Paths Marketing for life EX of Organizational Functional Structure Gulfstream are the functions Admin Legal Product Support Finance Marketing Sales Programs Engineering Operations CEO President Government Programs Functional Organization Structure Issues functional is not perfect Silos and Chimneys Each Silo and Chimney are functions and they are used to define the negatives of functions Clicker Question I m starting a new business If I go with a functional structure which below is not a benefit A Competition among functions B Scale economic advantages C Development of broad expertise D Superior Functional career paths E Enhances Skill development Divisional Structure ex Shia Leabouf CEO Product 1 Product 2 HR Manufacturing Finance Departments HR Manufacturing Finance Departments Benefits of Divisional Structure For used experts better coordination increase accountability grow shrink easier In divisional structure there are still functions but we are focusing more around the products Big 3 in Divisional Structure Business Unit product Geography and Customer Negative Duplication of Services EX of Product Divisional Structure GE general electric Divisional Structure Geographical CEO Europe Great Britain France Germany Departments Americas U S Brazil Mexico Departments Big Global companies do geographical divisional structure ex Dunkin Donuts Also Lowes went Geographically U S North 5 regions South 5 regions and West 4 regions Asian China Japan Korea Departments Cut the company up and focus on specific areas Divisional Structure and Customer Focused EX P G Walmart CVS Sheez They all have different products Matrix Structure ex Marc Zuckerberg pushing hard and doing things you believe HR CEO Legal MKTG FIN OPER S C Design Manager Project 1 Manager Project 2 Manager Project 3 Benefits of Matrix Structure Accountability to products Better communication Team solving issues Top MGMT focus on strategy The manager and Mktg columns illustrate the combination functional and divisional Project can also be referred to as programs business units 2 bosses EX of Matrix Structure Lockheed Martin Big electronics in air space land and water Multimanager Cross Functional Team HR CEO Legal MKTG FIN OPER S C Design Defense Air Navel Info Tech Biometrics Cyber Sec Space Explore Sat Climate Clicker Question Organizing a company around the same product is what structure Divisional Cross Functional Team Structure W L Gore ex Donald Trump video you re fired Very rarely used as total organizing structure
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