Unit 4 Organizing Lesson 1 Types Of Organization Structures PDF

Unit 4 | Organizing Lesson 1 | Types of Organization Structures Organization and Management 11 - Aequitas October 3, 2024 Objectives ▪ understand the nature of organizations and the organizing process by giving its definition ▪ distinguish the various types of organizational structures by discus...

Unit 4 | Organizing Lesson 1 | Types of Organization Structures Organization and Management 11 - Aequitas October 3, 2024 Objectives ▪ understand the nature of organizations and the organizing process by giving its definition ▪ distinguish the various types of organizational structures by discussing each’s key features and pros and cons ▪ determine the importance of the organizational structure in communication and decision-making Outline for today’s class… ▪ Game ▪ Discussion on: ▪ nature of organization ▪ types of organization structures The Nature of Organization ▪ What is organization / organizing? ▪ one of the core functions of management, alongside planning, leading, and controlling. ▪ the process of arranging resources, such as people, tasks, and materials, in a structured manner to achieve specific goals ▪ involves defining roles, responsibilities, and relationships to ensure coordinated efforts toward objectives Types of Organization Structures 1. Hierarchical organization (also known as line) 2. Functional organization 3. Divisional organization 4. Flat organization 5. Matrix organization 6. Team organization 7. Network organization 8. Project organization Task ▪ Group yourselves into four (4) members. ▪ On Oct 7, Monday, each group will present the pros and cons (advantages and disadvantages) of their assigned organization structure. ▪ Presentations must be kept to ONLY two (2) minutes. Task ▪ References (to be posted in MS Teams): “10 Types of Organizational https://www.indeed.com/career- Structures for Businesses” advice/career-development/types-of- organizational-structures “7 Types of Organizational https://creately.com/blog/diagrams/ty Structures (Organizational Chart pes-of-organizational-charts/ Types) for Different Scenarios” “Types of Organizational Structures https://www.businessnewsdaily.com/ to Consider for Your Business” 15798-types-of-organizational- structures.html Let’s reflect… How does the choice of organizational structure impact communication and decision-making within a company? Unit 4 | Organizing Lesson 1 | Types of Organization Structures Organization and Management 11 - Aequitas October 8, 2024 Objectives ✓ understand the nature of organizations and the organizing process by giving its definition ▪ distinguish the various types of organizational structures by discussing each’s key features and pros and cons ▪ determine the importance of the organizational structure in communication and decision-making Outline for today’s class… ▪ Group presentation ▪ Reflection + insight Types of Organization Structures ▪ An organization structure: ▪ “outlines the hierarchy within an organization, and… ▪ “describes the roles, responsibilities and lines of command that exist to achieve the organization's business goals” (Indeed). ▪ “governs the flow of information through levels of the company” (Business News Daily) ▪ “determines how information, responsibilities and approval will flow within your company” (BND) Types of Organization Structures 1. Hierarchical organization (also known as line) 2. Functional organization 3. Divisional organization 4. Flat organization 5. Matrix organization 6. Team organization 7. Network organization 8. Project organization Presentation time! In two minutes, present your assigned organization structure: what it is, and its pros and cons. Non-presenting groups, please keep in mind this reflection question: “How does the choice of organizational structure impact communication and decision-making within a company?” Hierarchical Organization D Power flows from the board of directors down to the CEO through the rest of the company from top to bottom. P ▪ clearly defines reporting relationships, project organization and division of authority ▪ details your company’s corporate ladder and promotional structure, thereby encouraging high- quality work C ▪ Bureaucratic hurdles could delay project completion ▪ It can make employees feel like they have no say Functional Organization D Similar to hierarchical organization, but with each department having its own department head acting as staff director and reporting to the CEO P ▪ helps employees develop specific, specialized roles ▪ boosts individual departments’ and employees’ self- sufficiency and innovation C ▪ doesn’t encourage communication and interaction among different departments Divisional Organization D more common in enterprise companies with many large departments, markets or territories; each line or product (division) has its own chief commanding executive P ▪ The different departments have some flexibility to operate separately ▪ departments have more autonomy and room for innovation C ▪ risks accidental duplication of resources ▪ encourages poor communication and internal competition among different departments Flat Organization D an organizational structure in which almost all employees have equal power; common in startups P ▪ Employees have more responsibility and independence. ▪ Faster to implement new practices or ideas, with less risk of error C ▪ Confusion around reporting procedures ▪ Employees lack or don’t develop specialized skills. Matrix Organization D fluid form of the classic hierarchical structure; allows employees to move from one department to another P ▪ Supervisors have the flexibility to choose the best employees for a project ▪ Employees have the opportunity to learn and foster skills outside their primary roles C ▪ There could be conflicts of interest between the needs for project organization and department organization. Team Organization D allows department heads to collaborate with employees from other departments as needed; similar to a matrix structure, but the focus is less on employee fluidity than on supervisor fluidity P ▪ The lack of compartmentalized labor drives productivity, growth and transparency C ▪ Confusion given the potential bypassing of traditional executive and lower-level roles Network Organization D especially suitable for a large, multi-city or even international company operating in the modern era P ▪ functional roles are distributed among on-site employees, off-site employees, freelancers and outsourced third parties ▪ drives employee communication, collaboration, and innovation C ▪ vague as to which employee, department or office should make the final decisions Projectized Organization D focus is on one project at a time; involves the demobilization of teams and resources upon a project’s completion P ▪ fosters more efficient decision-making and communication ▪ increases employee flexibility and versatility C ▪ Power might be too strongly centralized with the project manager Unit 4 | Organizing Lesson 1 | Types of Organization Structures Organization and Management 11 - Aequitas October 9, 2024 Objectives ✓ understand the nature of organizations and the organizing process by giving its definition ▪ distinguish the various types of organizational structures by discussing each’s key features and pros and cons ▪ determine the importance of the organizational structure in communication and decision-making Outline for today’s class… ▪ Conclude discussion on organization structures ▪ Begin Lesson 3 (discussion + assignment) Types of Organization Structures 1. Hierarchical organization (also known as line) 2. Functional organization 3. Divisional organization 4. Flat organization 5. Matrix organization 6. Team organization 7. Network organization 8. Project organization Centralization Centralization occurs when: ▪ major decisions are made by top management; and the ▪ lower management and employees must seek approval from top management. ▪ (Common in businesses with stable business environments.) Centralization Decentralization occurs when: ▪ lower management is allowed to make important decisions. ▪ (It is applicable to companies that are widely dispersed in several areas.) Let’s reflect… How does the choice of organizational structure impact communication and decision-making within a company? Insight The organization structure of a company significantly affects communication and decision- making processes. ▪ In centralized structures, decision-making is top-down, which can slow down communication but ensures clear authority. ▪ In decentralized structures, communication is more collaborative, allowing for quicker, more innovative decisions but can lead to complexities and challenges in coordination. Insight The organization structure of a company significantly affects communication and decision- making processes. It is essential to align the structure with the organization’s goals for optimal decision-making and communication flow. Objectives ✓ understand the nature of organizations and the organizing process by giving its definition ▪ distinguish the various types of organizational structures by discussing each’s key features and pros and cons ▪ determine the importance of the organizational structure in communication and decision-making Objectives ✓ understand the nature of organizations and the organizing process by giving its definition ✓ distinguish the various types of organizational structures by discussing each’s key features and pros and cons ✓ determine the importance of the organizational structure in communication and decision- making Unit 4 | Organizing Lesson 2 | Organization Theories Organization and Management 11 - Aequitas October 14, 2024 Objectives ▪ Understand organization theories by analyzing business situations Outline for today’s class ▪ Discuss answers to independent learning task last Oct 10, Thursday ▪ Continue discussion on organization theories You’ve watched a video on… ▪Classical Management Theory ▪ Bureaucracy ▪ Scientific Management ▪ Administrative Science Comprehension check! How did the shift from small workshops to large factories create new management challenges? ▪ The shift increased the scale and complexity of operations, requiring more formal organization, clear hierarchies, and efficient processes to manage a larger workforce and ensure productivity. Comprehension check! Why is it important for authority to be tied to official positions in a bureaucratic structure? ▪ It helps maintain stability and predictability in an organization, allowing for clear lines of responsibility and accountability. Comprehension check! How do their views on hierarchy and authority differ from modern management practices? ▪ While they focused on strict hierarchies and centralized authority, modern management practices often emphasize flexibility, collaboration, and empowerment of employees, moving away from rigid structures. Task ▪Scenario: Improving Efficiency in a Retail Store ▪Imagine you are a consultant brought in to help a medium-sized retail store that sells electronics. The store has about 20 employees, and recently, they have been facing several challenges: Task ▪Scenario: Improving Efficiency in a Retail Store × Customers complain about long wait times at checkout. × Inventory isn’t being restocked efficiently, causing delays in product availability. × Employees often switch tasks without a clear role or responsibility. Task Using the principles of Classical Management Theory (Weber's bureaucracy, Taylor's scientific management, and Fayol’s administrative science), you need to propose specific changes to improve the store's efficiency. Comprehension check! What is the main idea behind Max Weber's concept of bureaucracy? ▪ Weber's bureaucracy emphasizes a formalized and structured approach to management, characterized by clear hierarchies, defined roles, and standardized procedures to ensure efficiency and fairness. Comprehension check! What was the focus of Frederick Taylor's scientific management approach? ▪ Taylor's scientific management aimed to improve economic efficiency and labor productivity by analyzing and optimizing workflows, establishing standardized tasks, and using time and motion studies. Comprehension check! What are the key activities Fayol believed managers should excel at according to administrative science? ▪ Fayol identified planning, organizing, leading, coordinating, and controlling as the essential functions of management that should be prioritized for effective organization. Comprehension check! What common ideas did Weber, Taylor, and Fayol share about organizational management? ▪ All three theorists emphasized the importance of structure, hierarchy, and clear processes in management. They believed that organized systems could enhance efficiency and productivity. Task Instructions: ▪Max Weber (Bureaucracy): Propose how you would use Weber’s bureaucratic principles to structure the retail store more effectively. What kind of hierarchy would you establish, and how would you ensure clear roles, responsibilities, and authority within the organization? Bureaucracy (Max Weber) Possible answers: ▪ Hierarchy: implement a clear chain of command ▪ Roles and responsibilities: clearly define roles such s inventory manager, customer service supervisor, etc. ▪ Authority and rules: introduce formal rules and procedures; use job titles to assign responsibility and to maintain order in decision-making Task Instructions: ▪Frederick Taylor (Scientific Management): Identify one or two tasks within the store (e.g., restocking inventory, customer checkout) that you could streamline using Taylor's principles of scientific management. How would you study these tasks, and what improvements could you suggest to increase efficiency? Scientific Management (Frederick Taylor) Possible answers: ▪ Task: Restocking inventory ▪ Observe how employees restock shelves and how long ▪ Create a standardized restocking procedure ▪ Task: Customer checkout ▪ Analyze the checkout process: time spent scanning items and processing payments ▪ Introduce more ergonomic cashier stations, faster barcode scanners, and employee training on multitasking Task Instructions: ▪Henri Fayol (Administrative Science): As a store manager, how would you apply Fayol’s principles of management to ensure smoother operations? For example, how would you plan, organize, and control the staff’s activities to reduce chaos and improve performance? Administrative Science (Henri Fayol) Possible answers: ▪ Planning: Develop a weekly schedule that ensures optimal staffing levels during peak hours ▪ Organizing: Allocate resources such as inventory and staff based on specific needs of each department ▪ Controlling: Implement regular performance reviews and set daily or weekly targets ▪ Coordinating: Hold daily briefings to align all staff on goals, tasks, and any special store events “To manage is to forecast and plan, to organize, to command, to coordinate and to control.” – Henri Fayol Organization Theories ▪ Classical Management Theory ▪ Bureaucracy ▪ Scientific Management ▪ Administrative Science ▪ Systems Theory Let’s watch this video… Systems Theory Comprehension check! What is the main premise of systems theory? ▪ Organizations are complex systems comprised of interrelated components that work together to achieve common goals. Comprehension check! What are the core components of a system? ▪ inputs ▪ processes ▪ outputs Comprehension check! Explain the concept of holism. How does interdependence within a system affect organizational dynamics? ▪ In organizational systems, this means that the interactions and relationships among components can create unique outcomes that cannot be predicted by analyzing components in isolation. Comprehension check! Explain the concept of holism. How does interdependence within a system affect organizational dynamics? ▪ Interdependence within a system means that changes or actions in one part of the organization affect other parts. “The whole is greater than the sum of its parts.” – Aristotle Unit 4 | Organizing Lesson 2 | Organization Theories Organization and Management 11 - Aequitas October 22, 2024 Let’s watch this video… Systems Theory Task (in pairs) ▪ Scenario: Analyzing the Customer Service System of a Local Coffee Shop ▪ A local coffee shop, Kape Ta!, has recently experienced an increase in customer complaints about slow service during peak hours. The management wants to improve customer satisfaction and streamline operations. Task (in pairs) Instructions (for columns near the door): 1. Identify Key Components: List down the key components of the coffee shop's customer service system. ▪ inputs: _____________ ▪ processes: _____________ ▪ outputs: _____________ ▪ feedback mechanisms: _____________ Comprehension check! What are the core components of a system? ▪ inputs ▪ processes ▪ outputs Possible answers: ▪ Inputs: Staff training, equipment (coffee machines, order systems), and product availability. ▪ Processes: Order-taking, drink preparation, payment processing, and customer interaction. ▪ Outputs: Quality of service, customer satisfaction, and time taken to serve customers. ▪ Feedback Mechanisms: Customer feedback forms, social media reviews, and staff input. Task (in pairs) Instructions (for columns in the middle): 2. Analyze Interrelationships: Analyze how key components interact with each other. ▪ How does staff training impact the speed of service? ▪ How does the layout of the shop affect the order-taking and drink preparation process? ▪ How does quality of equipment (coffee machines, order system) affect overall customer satisfaction? Possible answers: ▪ Staff training: Staff training directly impacts the speed of service. Well-trained staff can perform tasks faster and with fewer errors, which reduces wait times and improves overall customer satisfaction. ▪ Layout: A well-organized layout allows baristas to move seamlessly between taking orders, preparing drinks, and delivering them, minimizing bottlenecks and optimizing service speed. Task (in pairs) Instructions (for columns near the windows): 3. Suggest improvements: suggest specific improvements that the coffee shop could implement to enhance customer service in terms of: ▪ processes: ___________ ▪ training: ___________ ▪ technology use: ___________ ▪ (what else?) Possible answers: ▪ Streamlining Processes: Adjusting the order flow or redesigning the workspace for efficiency. ▪ Training Programs: Introducing new training for staff on time management or customer interaction. ▪ Technology Use: Implementing a mobile ordering system or improving point-of-sale technology. “The whole is greater than the sum of its parts.” – Aristotle Let’s find value… Which management theory do you prefer: the classical (bureaucracy, scientific management, administrative science) or the more modern systems theory? What value can we draw from each?  The application of organizational theories helps in optimizing organizational functioning and adapting to Insight changing environments. Objectives ✓ Understand organization theories by analyzing business situations