review chapter 8

ORGANIZING STRUCTURE

      Fundamental Of Organizing

The organization chart depicts the positions in the firm and the way they are arraged. Organization chart the reporting structure and devision of labor in an organization.

·         Differentiation

Several related concepts underlie the idea of structural differentiation. For example,differentiation is created through division of labor and job specialization.Divison of labor the assignment of different people or groups. Specialization a process in wich different individuals and units perform diffrent tasks.

·         Intergration

As organization differentiate their structures, managers must simultaneously consider issues of integration. Coordination and is related concept,Coordination, refer to the procedures that link the various parts of the organization to achieve the organization’s overall mission.

      The Vertikal Structure

·         Authority in Organizations

At the most fundamental level, the functioning of every organization depend on the  use of authority, the legitimate right to make decisions and tell other people what to do. For example, a boss has the authority to give an order to a subordinate.

·         Hierarchical levels

The authority levels of the organizational pyramid. The key responsibilities at this top level include corporate governance-a term describing the oversight of the firm by its executive staff and board of directors.

·         Span Of Control

The number of subordinates who report directly to an executive or supervisor is called the span of control. The implications of differences in the span of control for the shape of organization are straightforward.

·         Delegation

Delegation is the assignment of authority and responsibility to a subordinate at a lower level. Delegation is perhaps the most fundamental feature of management because it entails getting work done through othres.

·         Decentralization

In the centralized organizations, important decisions usually are made at the top. In decentralized organizations, more decisions are made at loewr levels.

      The Horizontal Structure

·         The Functional Organization

The functional structure may be most appropriate in rather simple, stable environments. Departmentalization arround specialized activities such as production, marketing, and human resources.

·         The Devisional Organiation

Departmentalalization that groups units around products, customers, or geographic regions. In this structure, separate divisions may act almost as separate business or profit centers and work autonomously to accomplish the goals of the entire enterprise.

·         The Matrix Organization

A matrix organization is a hybird form of organization in which functional and devisional forms overlap. An organization composed of dual reporting relationships in which some employees report to two superiors-a functional manager and devisional manager. Matrix organization have dual rather than a sigle line of command.

·         The Network Organization

The network organization is a collection of independent, mostly single-function firms that collaborate to produce a good or service.

      Organizing Integration

·         Coordination by standardization

Standardization contrains actions and integrates various units by regulating what people do. People often know how to act-and how to interact-because standard operating procedures spell out what they should do. Establishing common routines and procedures that apply uniformly to everyone.

·         Coordination by Plan

Coordination by plan does not require the same high defree of stability and routinazation required for coordination by standardization. Interdependent units are required to meet deadlines and objectives that contribute to a common goals.

·         Coordination by Mutual Adjusment

Coordination by mutual adjusment involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreable to everyone. Units interact with one another to make accommodations to achieve flexible coordination.

·         Coordination and Communication

Huge amounts of information flow from the external environment to the organization and back to the environment. To cope, organizations must acquire, process, and respond to that information. Doing so has direct implications for how firms organize. To function effectively, organizations need to develop structures for processing information.