Structuring Organizations for Today's Challenges (2 Types of…
Structuring Organizations for Today's Challenges
The changing organization
economies of scale .This term refers to the fact that companies can reduce their production costs by purchasing raw materials in bulk
hierarchy is a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers and others who are responsible to that person
Chain of command
is the line of authority that moves from the top of the hierarchy to the lowest level
is a visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom.
came to be the term for an organization with many layers of managers.
2 Types of authority
occurs when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be
occurs when decision making is concentrated at the top level of management
Flat Organizational Structures
Tall Organizational Structures
divides organizations into separate units. The traditional way to departmentalize is by function —such as design, production, marketing, and accounting
has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with everyone reporting to only one supervisor.
are responsible for directly achieving organizational goals, and include production workers, distribution people, and marketing personnel.
advise and assist line personnel in meeting their goals, and include those in marketing research, legal advising, information technology, and human resource management.
Cross-functional self-managed teams
are groups of employees from different departments who work together on a long-term basis
in which specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure