Chapter 8: Structuring Organizations for Today's Challenges - Coggle…
Chapter 8: Structuring Organizations for Today's Challenges
Determine the job that needs to be completed
Dividing tasks/Division of labor
Divide tasks based on skill sets
Employees can develop skills in depth
The company can achieve economies of scale
Employees can coordinate work within the function
Departments may not communicate well
Employees may identify with their department’s goals rather than the
The company’s response to external changes may be slow
People may not be trained to take different managerial responsibilities.
Department members may engage in groupthink
Started with large companies in the 20th century
Economies of scales
Products were cheaper to acquire and manufacture
Set up in a hierarchy
Create a chain of command
Create an organization chart
Tall organization structure
Flat organization structure
Unity of command
Each worker is to report to one, and only one, boss.
Hierarchy of authority
All workers should know to whom they report. Managers should have the right to give orders and expect others to follow
Division of labor
Functions are to be divided into areas of specialization
such as production, marketing, and finance.
Subordination of individual interests to the general interest
Workers are to think of themselves as a coordinated team. The goals of the team are more important than the goals of individual workers.
Managers have the right to give orders and the power to
Degree of centralization
The amount of decision-making power vested
in top management should vary by circumstances.
Clear communication channels
All workers should be able to reach
others in the firm quickly and easily.
Materials and people should be placed and maintained in the
A manager should treat employees and peers with respect and
Esprit de corps
A spirit of pride and loyalty should be created among
people in the firm.
Decision making is concentrated at the
top level of management.
Decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be.
Line and Staff Organization
Matrix Style Organization
Cross Functional Self Managed Teams