Presentation on theme: "Objectives To obtain knowledge concerning the various organizational structures associated with business. To gain an understanding of each type of organizational."— Presentation transcript:1 Show
2 Objectives To obtain knowledge concerning the various organizational structures associated with business. To gain an understanding of each type of
organizational structure. To learn the advantages and disadvantages of various organizational structures. 3 Main Menu Introduction to Organizational Structures 4 Introduction to Organizational Structures 5
What is an Organization?
6 Common Characteristics of Organizations
7 Organization Purpose & Employees 8 Systematic Structures of an Organization 9 Organizational Levels
10 Operative Employees Make up the base level of the pyramid 11 Supervisors Are a part of an organization’s management team 12 Middle Managers Are employees who manage other managers
13 Top Management Sets an organization’s goals and objectives 14 The Management Process
15 The Management Process
16 Organizational Structures 17 Informal Structures Are laid-back and undefined 18 Formal Structures Are clearly defined and organized 19 Introduction to Organizational Structures
20 Assessment 1. Which of the following is an example of an organization?
21 Assessment 3. Which of the following is an example of a middle manager? A. Teller at a bank B. Director
of marketing C. Chief executive officer D. Salesperson in a retail store 22 Assessment 4. Which of the following is the correct order of
organizational levels? A. Operative employees, supervisors, middle managers, top management B. Operative employees, middle managers, supervisors, top management C. Middle managers, operative employees, supervisors, top management D. Middle managers, supervisors, operative employees, top management
23 Assessment 5. Which of the following types of organizational structures is normally found in a smaller business with fewer employees? A. Employer-based structure B. Informal structure C. Employee-based structure D. Formal structure
24 Organizational Details Affecting Structure
25 Work Specialization Occurs when a job is broken down into a number of steps which are each completed by a different
individual example of work specialization: assembly line workers Requires an individual to complete the same small task over and over again in order to contribute to a final project Can cause worker boredom, fatigue and stress Is mainly used by supervisors to design jobs
26 Span of Control Is the number of employees a supervisor can direct
27 Chain of Command Is the principle in which an employee should have only one supervisor to whom he or she is responsible
Decreases conflicting demands and priorities Allows easier allocation of tasks Is a formal system of employee communication
28 Authority Refers to the rights of a supervisory position to give orders Relates to one person’s position over
another Can be divided into three types: line staff functional 29 Line Authority Is the most straightforward form of authority 30 Staff Authority Supports line authority 31 Functional Authority Signifies the rights over individuals outside
of an individual’s specific division Breaks the chain of command Can create greater efficiency by allowing specialization of skills and improved coordination Has a major problem with overlapping authority
32 How Authority Works President Director of Operations Human Resources
33 Organizational Details Affecting Structure 34
Assessment 1. Which of the following requires an individual to complete the same small task over and over again in order to contribute to a final project? A. Span of control B. Work specialization C. Multitasking D. Chain of command 2. Which of the following is the principle in which an employee should have only one supervisor to whom he or she is responsible? B. Authorization C. Supervision
35 Assessment 3. Which of the following types of authority gives the supervisor the right to direct the work of his or her employees without consulting others? A. Line authority B. Staff authority C. Functional authority D. Department authority 4. Which of the following types of authority allows input and suggestions from additional staff members, but
does not guarantee implementation? A. Department authority D. Employer authority 36 Assessment 5. Which of the following types of authority can create problems of overlapping authority? A. Line authority B. Employer authority C. Functional authority D. Department authority
37 Ways to Divide Work 38 How Decisions are Made Centralization and
decentralization 39 Centralization
Occurs when only a select few people at the top of an organization make decisions Requires additional time and research in order to present to top management Can result in uniformity of procedures Is a top-down approach to making business decisions Problem
40 Decentralization Occurs when decisions are made by the individuals who are the closest to the problem Is more conducive to making changes in a
process 41 Departmentalization Is the grouping of individuals into departments based on: work
functions product or service target market geographic territory process used to create products 42 Functional Departmentalization 43 Functional Departmentalization
Example 44 Product Departmentalization 45 Product Departmentalization
Example 46 Target Market
Departmentalization
47 Target Market Departmentalization Example
48 Geographic Departmentalization 49 Geographic Departmentalization Example 50 Process Departmentalization 51 Process Departmentalization Example
52 Departmentalization Enhances the manageability of an organization
53 Assessment Ways to Divide Work 54 Assessment 1. Which of the following occurs when decisions are made by the individuals who are the closest to
the problem? A. Authorization B. Centralization C. Supervision D. Decentralization 2. Which of the following types of departmentalization involves grouping of individuals into departments based on different tasks? A. Product departmentalization B. Functional departmentalization C. Process departmentalization D. Target market departmentalization
55 Assessment 3. Which of the following types of departmentalization groups activities based on work or customer flow? Process
departmentalization Marketing departmentalization Functional departmentalization Homogeneous departmentalization 4. A company divides employees into eastern, southern, western and central regions Which of the following describes such departmentalization? Product departmentalization Geographic departmentalization Target market departmentalization
56 Assessment 5. Which of the following types of departmentalization works well for companies with multiple product lines? A. Product departmentalization B. Marketing departmentalization C. Functional departmentalization D. Homogeneous departmentalization
57 Basic Business Structures 58 Basic Business Structures 59 Simple Structure Is a non-elaborate structure Has little formalization 60 Simple Structure Advantages Disadvantages fast flexible inexpensive 61 Functional
Structure Is an expansion of functional departmentalization 62 Functional Structure Advantages
Disadvantages
63 Divisional Structure Is composed of self-contained units or divisions 64 Divisional Structure Advantages Disadvantages focuses on results
65 Matrix Organization Combines the elements of functional and product-based departmentalization creating a dual chain of
command Employees have at least two bosses Authority is shared between two supervisors Involves regular communication 66 Matrix Organization Advantage Disadvantage 67 Matrix Chart Organizer
68 Team-based Structure Consists entirely of work groups and teams which perform an organization’s work Allows team members to have authority to
make the decisions which will affect them Has no chain-of-command 69 Team-based Structure Advantages Disadvantages 70 Boundaryless Organization 71 Learning
Organizations
72 Selecting a Structure Consider the following:
73 Organizations Should: be flexible 74 Basic Business Structures
75 Assessment 1. Which of the following is NOT a disadvantage of a simple structure? It only works well in small
organizations. It allows too much power at the top level. It has few policies and rules to guide operations. It usually costs a lot of money. 2. Authority is shared between two supervisors in which of the following types of business structures ? Matrix organization Divisional structure Employee-based structure Customer-based structure
76 Assessment 3. Which of the following types of business structures consists
entirely of work groups and teams which perform an organization’s work? Productivity structure Divisional structure Employee-based structure Team-based structure 4. Which of the following is NOT one of the considerations when selecting a business structure? Size of the business or organization Worker skills and responsibilities Business purpose Customers’ demographics
77 Assessment 5. Which of the following is an advantage of a divisional structure? A. It often increases efficiency. B. It frees headquarter staff from being concerned with everyday activities. C. It helps reduce costs. D. It can create duplication of activities and resources.
78 Assessment
79 Assessment A(n) ____________ is a systematic grouping of individuals which has been brought together to accomplish a
goal. Informal structure Organization Concord Affiliation An organization’s products and services are the driving force in accomplishing its purpose. True False 80 Assessment Which of the following is NOT one of the four basic organizational levels? Supervisors Middle managers Top management Lower managers __________ structures are laid-back and undefined. Matrix Learning Informal Staff
81 Assessment __________ is the principle in which an employee should have only one supervisor to whom he or she is
responsible. Chain of command Span of control Work specialization Supervision An assembly line is an example of __________. 82 Assessment __________ is the
grouping of individuals into departments.
83 Assessment A __________ structure is composed of self-contained units or divisions. Simple Divisional Matrix
Learning A __________ organization structure combines the elements of functional and product-based departmentalization. 84 Resources (n.d.). Retrieved
October 2, 2008, from U.S. Small Business Administration: ( ). Retrieved October 3, 2008, from AllBusiness: Guide to Organizational Charting. (n.d.). Retrieved October 2, 2008, from OrgChart.Net: Management. (2008). Retrieved October 2, 2008, from About.Com:
85 Acknowledgements Production Coordinator: Technical Writer: Is a systematic grouping of people brought together to accomplish some specific purpose?An organization is a systematic arrangement of people brought together to accomplish some specific purpose.
What structure is composed of self contained units or divisions?Functional organization groups people with comparable skills and tasks; divisional organization creates a structure composed of self-contained units based on product, customer, process, or geographical division.
Which organization structure combines the elements of functional and product based departmentalization?A Combined Approach
Matrix departmentalization combines the organizational structures of product and functional departmentalization by using parallel management structures, reports management consultancy McKinsey and Company.
What is the formal arrangement of jobs within an organization?Organizational Structure - the formal arrangement of jobs within an organization. Organizational design provides a framework of how a group of people gets the job done.
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