Organizing Week 7 PDF - Organization Structure, Departmentalization | Business

Okay, here is the transcription of the document/image into a markdown format. ## Organizing **Week 7** --- ## Organizing **An organization structure** refers to the formal system that outlines how tasks are divided, coordinated, and managed within a company. it defines the **hierarchy, roles, r...

Okay, here is the transcription of the document/image into a markdown format. ## Organizing **Week 7** --- ## Organizing **An organization structure** refers to the formal system that outlines how tasks are divided, coordinated, and managed within a company. it defines the **hierarchy, roles, responsibilities, and communication flow** among employees and departments. The image shows a hierarchy with the following job titles: CEO, Manager, Foreman, Sales Officer, Workers and Salers. --- ## Edgar Schein's Common Elements * **Common Purpose.** It unifies employees and helps them understand the direction of the organization. * **Coordinated Effort.** It maximizes resources with a common purpose in mind. Managers need to leverage employee skills and experiences. * **Specialization and the Division of Labor** --- ## Specialization and the Division of Labor **Division of labor** is the process of breaking down work into smaller, separate tasks assigned to different individuals or groups. It allows for shared responsibility across the production process. **Specialization** refers to focusing on a specific task, skill, or area of expertise within a job or profession. It involves developing deep knowledge and proficiency in a particular function. | Feature | Specialization | Division of Labor | | :-------------- | :---------------------------------- | :--------------------------------------- | | Focus | Mastering a specific skill/field | Breaking work into separate tasks | | Scope | Individual expertise | Group or team-based work sharing | | Goal | Deep knowledge and proficiency | Efficiency through task separation | | Example | A doctor specializing in neurology | Different workers handling assembly-line tasks | --- ## Common Elements Continued * **Hierarchy of Authority:** Determines formal, position-based reporting lines and expresses who reports to whom. * Eg. CEO, business sales, office staff, customer service * **Centralization and Decentralization:** Degree to that decision making is concentrated to the top of the organization (key decisions made bay executive team vs including lower level staff) * **Formalization:** Extent to which jobs within an organization are standardized. --- ## Departmentalization ### Functional Structure * This groups employees based on their expertise (e.g., operations and finance). * Generally used to allow for a higher degree of specialization. The image shows functional structure with the following job titles: Chairman & CEO, Marketing Director, Finance Director, Design Director, Manager, Finance Manager, Designer Manager, Product Marketer, Finance Assistant, and Designer --- ## Departmentalization ### Product Division Structure * Groups employees based on product lines (e.g., aviation and transportation). * Generally used in organizations with multiple products. The image shows divisional product based structure with the following job titles: CEO, Electronics Division, Home Goods Division, and Yummy Snacks Division. --- ## Departmentalization ### Customer Division Structure * Groups employees based on which customers they do their work for (e.g., outpatient and urgent care). * Generally used in organizations that have products or services are unique to specific market segments. The image shows divisional market-based customer support team structure with the following job titles: CEO, Commercial Division, Residential Division, and Government Division --- ## Departmentalization ### Geography Division Structure * Groups employees based on their physical location * Generally used in large organizations that span multiple regions GEOGRAPHICAL ORG STRUCTURE Divisional: Geographical Organizational Structure | | | | | :---------------------- | :-------------------------- | :------------------------- | | Geographical Division 1 | Geographical Division # 2 | Geographical Division #3 | | Marketing Team | Marketing Team | Marketing Team | | Sales Team | Sales Team | Sales Team | | Service Team | Service Team | Service Team | --- ## Matrix Organizations * Organized by two dimensions (e.g., product and geography) * Each employee will have two "bosses" * Combines the localization benefits of the geography structure with those of the functional structure. * **Advantage**: Provides both flexibility and more balanced decision making. * **Disadvantage**: Complexity, which can lead to confusion. The image displays a matrix organization chart with the following elements: * CEO and President at the top. * CEO divided by SBUs 1-4 (Strategic Business Units) spanning across North, South, and Middle East * Vice President, Finance; Vice President, Engineering Applications; Vice President, Manufacturing; and Vice President, Marketing down the right side of the chart * Product Manager A, B, and C along the bottom, connected to each of the above VPs. --- ## Practice Question 1 Nike has a complex organization structure. It is broken down into divisions for manufacturing, sourcing, IT, procurement, and operations/technology. there are also divisions that specialize in running men's training, women's fitness, soccer, basketball, and digital sports. Nike's organization could be classified as this type of structure: * Functional * Product * Geography * Matrix --- ## Team-based Structures **Team-based structure**. focused on a few objectives and usually disbanded at the project's end. **A Team** is made up of people with comprehensive skills who are working towards a common purpose - created by grouping employees in a way that generates a variety of expertise. --- ## Network Structures **Network Structure**. Little bureaucracy and features decentralized decision-making - holacracy which attempts to achieve control and coordination by distributing power. It commonly uses wireless technology to communicate. Image showing a network structure comprised of Human Resources, Clients, Virtual Teams, Main Organization, Coordination Body, Information Networks, and Bidding. --- ## Modular Organizations **Modular organizations**. Businesses that have areas that can be easily separated from the company without jeopardizing it. Image that shows modular structure comprised of Epidemiology, Laboratory, Socioeconomics, Genetics, GNU Health(core module), Family, Hospital, Localizations (Brazil, Germany, India), Paediatrics Surgery, Radiology, Hemato, and Oncology. --- ## External and Internal Environment **Internal - Job Characteristics** * **Skill Variety:** degree to which a job requires the use of high-level skills * **Task Identity:** degree to which a person is in charge of completing work * **Task Significance:** degree to which a person's job affects others * **Autonomy:** degree to which a person has the freedom to perform their tasks * **Feedback:** degree to which people learn how effective they are being --- ## External and Internal Environment **External** * Greater external forces greater complexity of external environment * PESTLE --- ## Business Growth Cycle 1. **Creativity**: Marked by an early growth of company due to emphasis on product creation 2. **Direction**: Installs functional organization structure with formal communication 3. **Delegation**: Marked by application of decentralized organizational structure 4. **Coordination**: Merging of local units into product groups and establish formal planning procedures 5. **Collaboration**: Takes collaboration with the key leaders, managers, and employees to create a better structure. --- ## Class Activity: Organization Design Design and organizational structure for following hypothetical businesses: * A mature manufacturing company with a narrow product line and customers worldwide * A startup software company * An apparel company with five brand businesses distributed internationally * A media company composed of several acquisitions with a business focus on TV, film, internet, and a streaming service. --- ## Understanding Current Trends in Organization and Job Design * **Flatter Organizational Structures:** Focuses on horizontal growth digging deeper, expanding knowledge, and getting better at core competencies. * **Employee Empowerment:** Trust employees to make decisions. * Flexible work arrangements-reduced workload, compressed workweeks, and remote work. --- ## Benefits of Employee Empowerment * Empowerment aims to create an independent step involved in decision making * High productivity and creativity * More motivated employees * Better business relationships * Enhance customer experience * Boosted reputation * Higher trust in leadership * Dead time reduction * Enriched work culture --- ## THANK YOU! --- ## Quick Review * Can you correctly explain the efficiencies created by specialization and division of labor? * Are you now able to describe the characteristics of an organization structure? * Please list Edgar Schein's four common elements of organization * Can you differentiate between four basic types of departmentalization? * Please distinguish matrix organizations from traditional departments --- ## More Quick Review * Can you correctly identify aspects of the external/internal environment that influence the design of organization structure? * Please explain how the business growth cycle affects organization * Can you explain the advantages of organizational structures? * Please explain the benefits of employee empowerment * Are you able to explain the trend towards flexible work schedules? --- I hope this is helpful! Let me know if you have any other questions.