Quản trị kinh doanh - Chapter 10: Structuring organizations

Chapter 10Structuring OrganizationsLearning ObjectivesExplain how differentiation and integration define performance culturesDescribe how managers vertically organize processes and teams to centralize decision makingDescribe how mangers horizontally organize processes and teams to distribute decision making throughout the organizationShow how managers combine vertical and horizontal approaches to organizational design in order to be more adaptiveHierarchyVertically organized structure of power relationships, where the top level holds the most power and resourcesEvery organization needs some type of structure in place to be successfulUnites the different units of a companyBrings units in tune with the company’s underlying principles, core purposes, goals, and objectivesThe Basics (p. 256)Hierarchy comes in many statesThe Basics (cont.)Figure 10.1Designing performance cultures (p. 256)Through the creation of an organizational culture, managers can, consciously or unconsciously, design a performance cultureDifferentiation – process through which managers divide labor based on tasks and functions (p. 257)Integration – horizontal coordination between functions, departments, and organizational activitiesOrganizations must strike a balance between differentiation and integrationThe Basics (cont.)Structure must be modified to adapt to changes in the internal and external environmentsOrganic organization – highly adaptive structure defined by horizontal integration, distributed decision making, and employees with a high degree of generalization (p. 257)Span of control – the optimum number of direct reports that a person can manage effectivelyThe Basics (cont.)Specialization (p. 258)Form of differentiationFocusing a group or individual’s activities based on strengths, aptitudes, or skillsCoordinationSynchronization of an organization’s functions to ensure efficient use of resources in pursuit of goals and objectivesThe Basics (cont.)To give clarity to the integration process, managers should rely on:Standardization – performance context where policies and procedures seek to create uniform results (p. 258)Formalization – degree to which policies and procedures determine specific jobs and functionsDelegation – when a manager grants power and authorityThe Basics (cont.)Vertical organization structureCharacterized by hierarchical authority and communication channelsAuthority – implicit and explicit power that a manager or employee has to fulfill an organizational function or roleChain of command – predefined structural order of authority that determines how decisions are made and communicated Vertical Approach (p. 259)Vertical Approach (cont.)Figure 10.2Vertical Approach (cont.)Corporate governance (p. 261)Compendium of polices intended to ensure transparency and fulfillment of duties to stakeholdersBrokerTrusted intermediary that facilitates mutually-agreed upon outcomes for two or more partiesOrganization chartVisual document that communicates how a company is organizedVertical model at work (p. 261)Network organization – a group of independent companies that organize themselves to appear as a larger entity (p. 262)Changing organizational structureUnity-of-command principle – each employee reports to and is accountable to only one manager (p. 263) Vertical Approach (cont.)Decentralized structureRelies on all employees to collect and communicate information in order to make decisions and recommend changesResearching organizational structuresDepartmentalization – groups together processes and jobs based on functions, products or customersHorizontal Approach (p. 264)Functional organization (p. 265)Hierarchical structure where employees are managed through clear levels of authorityAutonomy – level of individual discretion that an employee has to make decisionsDivisional organizationProcesses and jobs are grouped based on clearly defined market segments or geographyMatrix organizationFacilitates horizontal integration and collaborationHorizontal Approach (cont.)