Chapter 10 Designing Adaptive Organizations © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organizing  All organizations wrestle with structural design and reorganization The deployment of organizational resources to achieve strategic goals  Division of labor  Lines of authority  Coordination  Organizing is important because it follows from strategy © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organizing the Vertical Structure Organizing structure defines:  The set of formal tasks assigned to individuals and departments  Formal reporting relationships  The design of the systems to ensure effective coordination © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.1 Sample Organization Chart © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organizing Concepts  Work Specialization is the degree to which organizational tasks are subdivided into individual jobs; also called division of labor  Chain of Command is an unbroken line of authority that links all individuals in the organization and specifies who reports to whom © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Authority, Responsibility, and Delegation    Authority is vested in organizational positions, not people Authority flows down the vertical hierarchy Authority is accepted by subordinates © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Authority, Responsibility, and Delegation  Responsibility is the duty to perform the task or activity as assigned  Accountability is the mechanism through which authority and responsibility are aligned  Delegation is the process managers use to transfer authority and responsibility down the chain © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Line and Staff Authority Line departments perform primary business tasks   Sales Production © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Line and Staff Authority Staff departments support line departments      Marketing Labor relations Research Accounting Human Resources © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Line and Staff Authority  Line authority means that people in management positions have formal authority to direct and control immediate subordinates  Staff authority is narrower and includes the right to advise, recommend, counsel in the staff specialists’ area of expertise 10 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.6 Dual-Authority Structure in a Matrix Organization 25 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.7 Global Matrix Structure 26 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Virtual Network Approach  Extends idea of horizontal coordination and collaboration  Could be a loose interconnected group i.e., outsourcing Virtual network structure means that the firm subcontracts most of its major functions to separate companies 27 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.8 Network Approach to Departmentalization 28 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.9 Structural Advantages and Disadvantages 29 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organizing for Horizontal Coordination  Companies need more flexibility than vertical structure can offer Meet fast-shifting environment Break down barriers between departments Need integration and coordination  Lack of coordination and cooperation can cause information problems Growing global challenge 30 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.10 Evolution of Organization Structures 31 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Reengineering  Radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed 32 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Task Forces, Teams, and Project Management Task Force – a temporary team or committee formed to solve a specific short-term problem involving several departments  Project Manager – person responsible for coordinating activities of several departments for the completion of a specific project Cross-functional Team – furthers horizontal coordination by including members across the organization 33 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.11 Project Manager Relationships to Departments 34 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Relational Coordination  Frequent, timely, problem-solving communication carried out through [employee] relationships of shared goals, shared knowledge, and mutual respect 35 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Structure Follows Strategy   Business performance is influenced by structure Business performance is influenced by structure   Strategic goals should drive structure Strategic goals should drive structure   Structure should facilitate strategic goals Structure should facilitate strategic goals 36 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.12 Factors Affecting Organization Structure 37 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10.13 Relationship of Structural Approach to Strategy 38 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Structure Fits the Technology  Knowledge, tools, techniques, and activities should match production activities  Manufacturing firms can be categorized according to: Small-batch and unit production Large-batch and mass production Continuous process production  The technical complexity of each type of firm differs 39 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part [...]... publicly accessible website, in whole or in part Span of Management   Tall structure have more levels and narrow span Flat structure have a wide span and fewer levels 12 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 2 Reorganization and Span of Management 13 © 2016 Cengage Learning All Rights Reserved... part 10. 3 Five Approaches to Structural Design 16 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 3 Five Approaches to Structural Design 17 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 3... not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 3 Five Approaches to Structural Design 19 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 3 Five Approaches to Structural Design 20 © 2016 Cengage Learning All Rights Reserved May not be scanned,... not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 4 Functional vs Divisional Structure 22 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 5 Geographic-Based Global Organization Structure 23 © 2016 Cengage Learning All Rights Reserved May not... scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 6 Dual-Authority Structure in a Matrix Organization 25 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 7 Global Matrix Structure 26 © 2016 Cengage Learning All Rights Reserved May not be scanned,... not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 8 Network Approach to Departmentalization 28 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 9 Structural Advantages and Disadvantages 29 © 2016 Cengage Learning All Rights Reserved May not be... information problems Growing global challenge 30 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 10 Evolution of Organization Structures 31 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Reengineering...Span of Management   The number of employees reporting to a supervisor Less supervision/larger spans of control Work is stable and routine Subordinates perform similar work Subordinates are in one location... service, and speed 32 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Task Forces, Teams, and Project Management Task Force – a temporary team or committee formed to solve a specific short-term problem involving several departments  Project Manager – person responsible for coordinating activities of several... coordination by including members across the organization 33 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 11 Project Manager Relationships to Departments 34 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ... area of expertise 10 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Span of Management  ... or duplicated, or posted to a publicly accessible website, in whole or in part 10. 2 Reorganization and Span of Management 13 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied... scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10. 10 Evolution of Organization Structures 31 © 2016 Cengage Learning All Rights Reserved May not