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Organization Structure - Coggle Diagram

- - - - specialization enables efficiency
        
        too much specialization; monotony and boredom; creates separation and hinders coordination
      - new strategic issues => new positions or departments
        
        SONY => CISO after hacking issue
  - - - scalar principle refers to a clearly defined line of authority in the organisation that includes all employees. Authority and responsibility for different tasks should be distinct. All persons in the organisation should know to whom they report, as well as the successive management levels all the way to the top.
      - Unity of command means that each employee is held accountable to only one supervisor.
  - - - distinguished by three characteristics
        
        Authority flows down the vertical hierarchy. Positions at the top of the hierarchy are vested with more formal authority than are positions at the bottom.
        
        Authority is accepted by subordinates. Although authority flows from the top down, subordinates comply because they believe that managers have a legitimate right to issue orders.
        
        acceptance theory of authority argues that a manager has authority only if subordinates choose to accept his or her commands. If subordinates refuse to obey because the order is outside their zone of acceptance, a manager’s authority disappears.
        
        Authority is vested in organisational positions, not people. Managers have authority because of the positions they hold,
    - - Management in practice
        
        Advantages of delegation
        
        Decisions are made at the right level
        
        lower level employees are motivated
        
        employees can develop decision making skills
        
        Approach
        
        Delegate the whole task to one person
        
        Select the right person
        
        extend authority
        
        give thorough instruction
        
        maintain feedback
        
        evaluate and reward performance
        
        Decentralization attempts often bogged down by middle managers' inability to delegate
- - - - coordination The managerial task of adjusting and synchronising the diverse activities among different individuals and departments.
    - - collaboration A joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose.
    - - re-engineering The radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed.
- - - - divisional structure An organisation structure in which departments are grouped based on similar organisational outputs.
        
        geographic or customer based
        
        In this structure, all functions in a specific country or region report to the same division manager. This structure focuses organisation activities on local market conditions, such as consumer preferences, industry regulations and infrastructure. Competitive advantage may come from the production or sale of a product adapted to a given country.
        
        advantages
        
        Fast response, flexibility in an unstable environment, Fosters concern for customers’ needs
        
        how it works
        
        In a divisional structure, divisions are created as self-contained units, with separate functional departments for each division.Each department is smaller and focuses on a single product line or customer segment. Departments are duplicated across product lines.
        
        disadvantages
        
        Duplication of resources across divisions, Less technical depth and specialisation in divisions, Poor coordination across divisions
      - often considered essential in large businesses
    - - matrix approach An organisation structure that utilises functional and divisional chains of command simultaneously in the same part of the organisation.One unique feature of the matrix is that it has dual lines of authority.
        
        disadvntages
        
        Frustration and confusion from dual chain of command High conflict between two sides of matrix Many meetings, more discussion than action Human relations training needed Power dominance by one side of matrix
        
        top leader, matrix boss, two boss emoloyees
        
        advantages
        
        More efficient use of resources than single hierarchy Flexibility, adaptability to changing environment Development of both general and specialist management skills Interdisciplinary cooperation, expertise available to all divisions Enlarged tasks for employees
    - - functional structure An organisation structure in which positions are grouped into departments based on similar skills, expertise and resource use.
        
        Disadvantages
        
        The primary disadvantages reflect barriers that exist across departments.
        Because people are separated into distinct departments, communication and coordination across functions are often poor. Poor coordination means a slow response to environmental changes, because innovation and change require involvement of several departments.
        
        Advantages
        
        Employees who perform a common task are grouped to permit economies of scale and efficient resource use.
        The large functional departments enhance the development of in-depth skills because people work on a variety of problems and are associated with other experts within their own department. Because the chain of command converges at the top, the functional structure offers a way to centralise decision making and provide unified direction from top managers.
        Samson, Danny, e
        
        How it works
        
        The functional structure is a strong vertical design. Information flows up and down the vertical hierarchy, and the chain of command converges at the top of the organisation. In a functional structure, people within a department communicate primarily with others in the same department to coordinate work and accomplish tasks or implement decisions that are passed down the hierarchy.
  - - - The team-based approach gives managers a way to delegate authority, push responsibility further down the organisation and create participative teams that engage the commitment of workers. This approach enables organisations to be more flexible and responsive in the competitive global environment.
        
        advantages
        
        Some advantages of functional structure Reduced barriers among departments, increased compromise Less response time, quicker decisions Better morale, enthusiasm from employee involvement Reduced administrative overheads
        
        disascantages
        
        Dual loyalties and conflicts Time and resources spent on meetings Unplanned decentralisation
        
        2 approaches
        
        cross-functional team A group of employees assigned to a functional department that meets as a team to resolve mutual problems.
        
        permanent teams A group of participants from several functions who are permanently assigned to solve ongoing problems of common interest.
    - - An organisational structure in which the organisation subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organisation.
        
        Rather than being housed under one roof, services such as accounting, design, manufacturing and distribution are outsourced to separate organisations that are connected electronically to the central office. 40 Networked computer systems, collaborative software, and the Internet enable organisations to exchange data and information so rapidly and smoothly that a loosely connected network of suppliers, manufacturers, assemblers and distributors can look and act as one seamless company. The idea behind networks is that a company can concentrate on what it does best and contract out other activities to companies with distinctive competence in those specific areas. This enables a company to do more with less.
      - avantages
        
        Global competitiveness Workforce flexibility/challenge Reduced administrative overhead
        
        disadvantages
        
        No hands-on control Can lose organisational part Employee loyalty weakened