Organizing the Business

Transcription

1 Slide 1 BA-101 Introduction to Business Organizing the Business Chapter Six 1-1 Slide 2 What Is Organizational? Organizational specification of the jobs to be done within an organization and the ways in which they relate to one another 6-2 Slide 3 Organization Charts Organization Chart diagram depicting a company s structure and showing employees where they fit into its operations Chain of Command reporting relationships within a company 6-3

2 Slide 4 The Organization Chart 6-4 Slide 5 Determinants of Organizational Mission Strategy Size Internal environment External environment 6-5 Slide 6 The Building Blocks of Organizational Specialization Identification of specific jobs that need to be done and determining who will perform them Departmentalization Grouping tasks and jobs for efficiency Establishment of a Decision-Making Establishing supervisory responsibility and decision-making authority 6-6

3 Slide 7 Departmentalization Departmentalization - process of grouping jobs into logical units Product Chevy, Jeep, Buick Process - manufacturing Function accounting, human resources, marketing Customer wholesale, retail, govt. Geographic by state, region Oregon / Northwest 6-7 Slide 8 Multiple Forms of Departmentalization 6-8 Slide 9 Decision-Making Centralization vs. Decentralization Centralized Organization Decisions are made at the top Decentralized Organization Decision-making authority is delegated to levels of management at points below the top What are the advantages & disadvantages of each? 6-9

4 Slide 10 Distributing Authority: Centralization and Decentralization Flat Organizational Decentralized companies with relatively few layers of management Span of Control Number of people a manager supervises 6-10 Slide 11 Distributing Authority: Centralization and Decentralization Tall Organizational characteristic of centralized companies with multiple layers of management 6-11 Slide 12 The Delegation Process Delegation - process through which a manager allocates work to subordinates 1. Assigning responsibility assign the task to the appropriate person 2. Granting authority provide the power and resources necessary to complete the task 3. Creating accountability establish checkpoints and accountability for the successful completion of the task 6-12

5 Slide 13 Forms of Authority Line Authority organizational structure in which authority flows in a direct chain of command from the top of the company to the bottom Staff Authority authority based on expertise that usually involves counseling and advising line managers 6-13 Slide 14 Line and Staff Organization 6-14 Slide 15 Basic Forms of Organizational Functional 6-15

6 Slide 16 Basic Forms of Organizational Divisional divisions operate as autonomous businesses under the larger corporate umbrella may be based on product or geography 6-16 Slide 17 Basic Forms of Organizational Matrix Concurrent vertical and horizontal reporting structure Some companies use a temporary matrix organization for completion of a specific project and affecting only one part of the firm 6-17 Slide 18 Matrix Organization of Martha Stewart Living Omnimedia 6-18

7 Slide 19 Organizational Design for the Twenty-first Century Team organization Reliance on project-type teams, with little underlying functional hierarchy Learning organization Continuous learning and development of employees results in organizational transformation Virtual organization Little or formal structure with few permanent employees 6-19 Slide 20 Informal Organization Informal Organization Network, unrelated to the firm s formal authority structure, of everyday social interactions among company employees The Grapevine informal communication network 6-20