TAILIEUCHUNG - Lecture Management: Leading and collaborating in a competitive world (10/e) – Chapter 8

After studying Chapter 8, you will be able to: Explain how differentiation and integration influence an organization's structure, summarize how authority operates, define the roles of the board of directors and the chief executive officer, discuss how span of control affects structure and managerial effectiveness,. | Organization Structure Chapter Eight McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives LO 1 Explain how differentiation and integration influence an organization’s structure. LO 2 Summarize how authority operates. LO 3 Define the roles of the board of directors and the chief executive officer. LO 4 Discuss how span of control affects structure and managerial effectiveness. LO 5 Explain how to delegate effectively. 8- Learning Objectives (cont.) LO 6 Distinguish between centralized and decentralized organizations. LO 7 Summarize the ways organizations can be structured. LO 8 Identify the unique challenges of the matrix organization. LO 9 Describe important integrative mechanisms. 8- Conventional Organization Chart 8- Figure Fundamentals of Organizing Differentiation the organization is composed of many different units that work on different kinds of tasks, using different skills and work methods. Integration these differentiated units are put back together so that work is coordinated into an overall product 8- Differentiation Division of labor The assignment of different tasks to different people or groups Specialization A process in which different individuals and units perform different tasks 8- Integration Coordination The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission 8- Authority in Organizations Authority The legitimate right to make decisions and to tell other people what to do. 8- Delegation Delegation The assignment of new or additional responsibilities to a subordinate Responsibility, Authority, and Accountability 8- Advantages of Delegation Leverages managers’ energy and talent Allows managers to accomplish more than they could on their own Helps develop effective subordinates. Promotes a sense of being an important, contributing member of the organization, so employees tend to feel a stronger commitment, perform their tasks better, and engage in more innovation 8- Decentralization Centralized organization An organization in which high-level executives make most decisions and pass them down to lower levels for implementation Decentralized organization An organization in which lower-level managers make important decisions 8- The Functional Organization Functional organization Departmentalization around specialized activities such as production, marketing, and human resources. 8- The Divisional Organization 8- Figure The Matrix Organization Matrix organization An organization composed of dual reporting relationships in which some managers report to two superiors—a functional manager and a divisional manager 8- The Network Organization Network organization A collection of independent, mostly single-function firms that collaborate on a good or service 8-

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