GMS Exam Review PDF

- - - - - - Powerpoint slides / textbook Chp 1 - - ***what is*** - - - - - - - - - - - - - - Chp 7 ***What is*** - - - - - - - - - Try to understand examples of these - - - - - -...

- - - - - - Powerpoint slides / textbook Chp 1 - - ***what is*** - - - - - - - - - - - - - - Chp 7 ***What is*** - - - - - - - - - Try to understand examples of these - - - - - - - - - - Chapter 7 has situational questions Chp 5 **What is** - - - - - - - - - - - - - Chp 2 ***Theory*** **What is** - - - - - - **Chp 1** - Continuous learning is the ongoing process of acquiring new skills or knowledge to adapt and grow personally or professionally. **Ex.** An example of continuous learning is a professional taking online courses to update their skills or earn new certifications to stay competitive in their field. - The \"war for talent\" refers to the competition among companies to attract, hire, and retain skilled and talented employees. **Ex.** An example of the \"war for talent\" is a tech company offering high salaries, remote work options, and extensive benefits to attract top software developers in a competitive job market. ***What is?*** - Social capital is the network of relationships, trust, and cooperation between people that provide support, resources, and opportunities. **Ex.** An example of social capital is a person using their professional network to find a job opportunity through a referral from a trusted connection. - Is the combined brainpower and shared knowledge of an organization's employees. **Ex.** A company\'s database of customer information, product designs, and marketing strategies that gives it a competitive advantage. - A knowledge worker\'s mind is a critical asset to employers and adds to the intellectual capital of an organization. They are likely to provide creative support to the organization. **Ex.** A software developer who uses their expertise to create apps or programs, solving problems and adding value through their specialized knowledge. - A virtual team/work involves people collaborating remotely, often from different locations, using digital tools and technology instead of meeting in a physical office. **Ex.** A project team with members from the U.S., India, and Germany working together through video calls and online collaboration tools. **Technology** - - - - - A network is a group of interconnected people or systems that share information, resources, or support. **Ex.** A professional networking group where members connect to share job opportunities, industry insights, and business contacts. - The worldwide interdependence of resource flows, product markets, and business competition that characterize our economy. **Ex.** 1. 2. - Information technology (IT) is the use of computers, networks, and software to store, manage, and process data. **Ex.** A company using cloud services to store and access its files securely from anywhere. - Workforce diversity is the inclusion of people from different backgrounds, cultures, genders, ages, and abilities in a workplace. **Examples:** 1. 2. - Code of moral principles that set standards of conduct of what is "good" and "right", as well as "bad" and "wrong" - - 1. 2. 3. 4. - Reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness - **An example** Workplace Diversity is a marketing firm that employs individuals of various ethnicities, genders, ages, and abilities, including people from different countries, ensuring a wide range of perspectives and ideas in their campaigns and projects. - Frenturing is when companies collaborate with others (often competitors) to share resources, technology, or expertise for mutual benefit. **Examples:** 1. 2. A real-life example of frenturing is the **Star Alliance**, where airlines like Lufthansa, United Airlines, and Singapore Airlines collaborate. They share routes, lounges, and frequent flyer benefits, allowing them to expand their services and reach without directly competing on all fronts. How diversity bias can occur in the workplace: - - - - - - - Barriers for the workforce are obstacles that prevent people from accessing or advancing in jobs. **Examples:** 1. 2. - People change jobs more often and work on flexible contracts **Ex.** Freelance Designers: People who don't work for just one company but take on design projects from different clients whenever they want. Ride-Share Drivers: Drivers using apps like Uber work for themselves, choosing when and where they want to drive instead of being tied to a fixed schedule or company. - An overall measure of the quantity and quality of work performance with resource utilization taken into account - Resource utilization is how well you use available resources (like time, money, or people) to get the most work done effectively. **Examples:** 1. 2. Chp 7 ***What is*** - Managers must have - ability to understand new technologies and to use them to their best advantage - ability to locate, gather, organize, and display information for decision-making and problem solving - ability to evaluate and analyze information to make actual decisions and solve real problems - is the skill of interacting well with others. It means being able to communicate clearly, understand others\' feelings, work well in teams, and build good relationships. - Heuristics are simple, quick ways to solve problems or make decisions using past experiences or rules of thumb instead of detailed analysis. **Examples:** 1. 2. - Taps information systems to extract and report data in organized ways that are useful to decision makers Business intelligence is the process of using data and technology to understand how a business is doing and make better decisions. **Examples:** 1. 2. - ### Planning for different possible future situations so you\'re prepared, no matter what happens. Examples: - - - Finding solutions to fix issues or challenges. Examples: - - - Making decisions that involve uncertainty, hoping for a positive outcome. Examples: - - - When something doesn't work as expected or falls below the required standard. Examples: - - - A chance to do something better or achieve more success. **Examples:** - - Try to understand examples of these - - inactive in information gathering and solving problems **Examples:** - - - reactive in gathering information and solving problems **Examples of Problem Solvers:** 1. 2. - proactive in anticipating problems and opportunities and taking appropriate action to gain an advantage **Examples:** - - - - ### **Systematic Thinking Examples:** 1. 2. - ### **Intuitive Thinking Examples:** 1. 2. - Critical thinking is carefully analyzing information, asking questions, and considering different perspectives before making a decision or forming an opinion. **Examples:** 1. 2. - applies both intuitive and systematic thinking - **Easy explanation !!!!!** - **Examples of Multi-Dimensional Thinking:** 1. 2. - - \- *Programmed decisions apply solutions that are readily available from past experiences to solve structured problems* - *- Nonprogrammed decisions apply a specific solution to meet the demands of a unique problem - commonly faced by higher-level management* **Ex.** ### **Structured Problem:** A problem with a clear solution and steps to follow.\ **Example:** - - ### **Unstructured Problem:** A problem without a clear solution or steps, requiring creativity and judgement.\ **Example:** - - - ### **Programmed Decisions:** These are routine, everyday decisions that follow a set process or rule because they happen often. **Examples:** 1. 2. ### **Non-Programmed Decisions:** These are new, unusual decisions that don't have a clear rule or process, so they require creative thinking and judgement. **Examples:** 1. 2. - When people continue investing time, money, or effort into something, even if it's not working, because they've already committed to it. **Example:** - - This happens when important people or groups are left out of the decision-making process, leading to poor decisions or resistance later. **Example:** - - When someone only pays attention to information that supports their existing beliefs and ignores anything that goes against them. **Example:** - - Making decisions based on the information that is most readily available or recent in memory, rather than all relevant data. Example: - Global economy: - Globalization - World 3.0 - **Chp 5** **What is** - Globalization has a range of effects, both positive and negative: ### **Positive Effects:** 1. 2. 3. 4. It\'s like a giant web connecting the world, making things better for some while creating challenges for others. - ### **Negative Effects:** 1. 2. 3. 4. - ### **Multinational Company:** - - - ### **Transnational Company:** - - - So, a multinational company adjusts more to each place, while a transnational company stays the same everywhere! - Managing business and organizations with interests in more than one country **Ex.** **International Team Leadership**: - - **Cross-Cultural Training Programs**: - - **Global Supply Chain Management**: - - **International Marketing Strategy**: - - **Setting Up International Offices**: - - - ### **Why Businesses Expand Globally:** 1. - 2. - 3. - 4. - 5. - ### **Ways Businesses Can Go Global:** 1. - 2. - - 3. - 4. - 5. - These strategies help businesses grow and compete on a global scale! **How Companies Go Global:** - the process of purchasing materials or services around the world for local use - selling locally made products in foreign markets - buying foreign-made products and selling them domestically - one firm pays fee for rights to make or sell another company's products - a fee is paid for rights to use another firm's name, branding, and methods **Reasons why businesses go global:** - - - - - - Governments have several ways to restrict global companies operating in their countries. Here are the most common methods: ### **1. Tariffs:** - - ### **2. Quotas:** - - ### **3. Regulations and Standards:** - - ### **4. Subsidies to Local Companies:** - - ### **5. Bans and Embargoes:** - - ### **6. Foreign Investment Restrictions:** - - ### **7. Licensing and Permits:** - - These tools allow governments to control the influence of global companies and protect their own economies, industries, and interests. **Legal and political systems** - - - - - Legal and political systems (cont.) - Potential loss in value of a foreign investment due to instability and political changes in the host country - Forecast political disruptions that threaten the value of a foreign investment **Regional Economic Alliances** - - - - - - Global companies face several obstacles when they operate in different countries. Here are the most common challenges: ### **1. Cultural Differences:** - - ### **2. Legal and Regulatory Issues:** - - ### **3. Political Instability:** - - ### **4. Economic Risks:** - - ### **5. Supply Chain Complexities:** - - ### **6. Communication Barriers:** - - ### **7. Compliance with Local Business Practices:** - - ### **8. Competition with Local Companies:** - - ### **9. Adaptation of Products and Services:** - - ### **10. Intellectual Property (IP) Risks:** - - These obstacles require careful planning, flexibility, and a strong understanding of the local markets to overcome successfully. **Ethical challenges for Global Businesses:** - - - - Ethical issues for Global Businesses: - illegal practices that further one's business interests (SNC Lavalin) - makes it illegal for Canadian firms and their representatives to engage in corrupt practices overseas - - - - The agreement between the USA, Canada, and Mexico is called the **United States-Mexico-Canada Agreement (USMCA)**. It replaced the **North American Free Trade Agreement (NAFTA)** in 2020. Here's a simple overview of what it does and its key points: ### **What is the USMCA?** - - ### **Key Features of the USMCA:** 1. - 2. - - 3. - - 4. - - 5. - - 6. - ### **Why is the USMCA Important?** - - In short, the USMCA updates and improves upon the old NAFTA agreement, focusing on fair trade, modern industries (like digital and auto), and protecting workers and the environment. - The **European Union (EU)** is a political and economic union made up of **27 European countries**. It was created to promote cooperation, peace, and economic stability among its members. Here's a simple breakdown of what the EU does and why it's important: ### **What is the European Union?** - - - ### **Key Features of the EU:** 1. - - 2. - - 3. - - 4. - - 5. - 6. - ### **Why is the EU Important?** - - - ### **Examples of EU Initiatives:** - - - The European Union is one of the most successful examples of regional cooperation in the world, focusing on economic integration, social policies, and maintaining peace among its members. - The **Gamo Watt's Cage**, often just called **Watt's Cage**, is a model used to describe and understand **social networks**---how people are connected to each other and how information spreads through these connections. It was developed to explore how things like trends, rumors, or behaviors start and spread in society. ### **What is Watt\'s Cage (Gamo Watt's Cage)?** - - ### **How Does It Work?** - - ### **Examples of Watt\'s Cage in Real Life:** 1. - 2. - 3. - 4. - The Watt's Cage model helps us understand why some things catch on quickly and go viral, while others don't spread at all. It's about the **connections** and **thresholds** of individuals within the network. - Culture is the shared set of beliefs, values, and patterns of behavior common to a group of people. - The dimensions of culture refer to the different ways cultures vary and influence behavior, communication, and social norms. A well-known framework for understanding these dimensions is **Hofstede's Cultural Dimensions Theory**, but there are other models too. Here's an overview of the main dimensions: ### **1. Power Distance:** - - - ### **2. Individualism vs. Collectivism:** - - - ### **3. Uncertainty Avoidance:** - - - ### **4. Masculinity vs. Femininity:** - - - ### **5. Long-Term vs. Short-Term Orientation:** - - - ### **6. Indulgence vs. Restraint:** - - - These dimensions help explain the differences in behaviors, attitudes, and social structures across cultures. Understanding them can improve communication, management, and collaboration in multicultural settings. - Low context cultures - emphasize communication via spoken or written words - - - High context cultures -- rely on nonverbal and situational cues as well as on spoken or written words - - - Monochronic cultures -- people tend to do one thing at a time - Polychronic cultures -- time is used to accomplish many different things at once - **Monochronic Culture**: - - - **Polychronic Culture**: - - - - Tight and Loose Cultures - - - - - "The nail that sticks up will be hammered down" "The squeaking wheel gets the grease" \- Asian or North American idiom?? ### **Tight vs. Loose Culture** - - - - - - - - - Values and national cultures (Hofstede): - - - - - - Confusion and discomfort a person experiences in an unfamiliar culture **Culture shock** is the feeling of confusion, surprise, or discomfort you get when you experience a new culture that is very different from your own. It often happens when you travel, live, or work in a foreign country. It can make people feel out of place because things like language, behaviour, and daily routines may be unfamiliar. ### **Stages of Culture Shock:** 1. - 2. - 3. - 4. - ### **Examples of Culture Shock:** 1. - 2. - 3. - - 4. - 5. - Culture shock is a normal experience when adjusting to a new environment, and with time, most people learn to adapt and appreciate the differences. **Chp 2** **What is** - Assumption - people are rational **Scientific Management:** 4 guiding principles (Frederick Taylor) 1. 2. 3. Zara's use of these behavioural management approaches helps them stay efficient, meet customer demands, and quickly adapt to fashion trends, ensuring the company runs smoothly and stays competitive. 4. Taylor =\> often called the "father of scientific management" =\> noticed that workers often did their jobs with wasted motions and without a consistent approach. **Ex.** ### 1. Assembly Line Production (e.g., Ford Motor Company): - - ### 2. Fast Food Restaurant (e.g., McDonald's): - - **Administrative Principles:** Rules/ duties of management (Henri Fayol) - - - - - **Ex.** Here are two examples of administrative principles, which are basic rules or guidelines for managing organizations: 1. - - 2\. **Unity of Command**: - - **Bureaucratic organization:** Bureaucracy (Max Weber): - - - - **Ex.** Bureaucratic organizations follow a structured and hierarchical setup with clear rules, procedures, and a chain of command. Here are some simple examples: 1. - 2. - 3. - 4. - 5. - In these examples, the focus is on following rules, having a clear structure, and ensuring consistent operations. - Self actualization needs - **highest level** ***Need for self-fulfilment; to grow and use abilities to fullest and most creative extent*** Esteem needs - **higher order needs** ***Need for esteem in eyes of others; need for respect, prestige, recognition, need for self-esteem, personal sense of competence, mastery*** Social needs - **lower order needs** ***Need for love, affection, sense of belongingness in ones relationships with other people*** Safety needs - **lower order needs** ***Need for security, protection, and stability in the events of day-to-day life*** Psychological needs - **lower order needs** ***Most basic of all human needs: need for biological maintenance: food, water, and physical well-being*** - **McGregor's Theory X and Y** Theory X assumes that workers: - - - - - **Theory Y assumes that workers are:** - - - - - **EXAMPLE** McGregor's Theory is called Theory X and Theory Y, and it's about how managers view their employees and how those views influence their management style. It was developed by Douglas McGregor in the 1960s. Here's a simple breakdown: ### Theory X - - - ### Theory Y - - - ### Summary - - McGregor's theory highlights that a manager's belief about employees can shape the workplace environment. Theory X leads to a more rigid and controlled approach, while Theory Y promotes a more flexible and empowering management style. - - - - **Example** **Contingency thinking** means that there's **no one-size-fits-all** approach in management. Instead of following a fixed rule, managers adjust their strategies based on the situation or context. It's about being **flexible** and **adapting** to different circumstances. Here are some simple examples: ### **Example 1: Leadership Style** - - - ### **Example 2: Decision-Making** - - ### **Example 3: Employee Motivation** - - ### **Example 4: Workplace Environment** - - ### **Summary** Contingency thinking is all about **adapting** management style, leadership, and strategies based on the **situation** and the **people** involved. It's the idea that different challenges need different solutions! - - - - - - - - - **Ex.** **Evidence-Based Management (EBM)** is about making business decisions based on **facts, data, and proven research** instead of gut feelings, opinions, or tradition. It's like using science and information to run a business smarter. Here are a few simple examples: ### **Example 1: Hiring Process** - - ### **Example 2: Performance Management** - - ### **Example 3: Employee Well-Being Programs** - - ### **Example 4: Customer Service Improvement** - - ### **Example 5: Marketing Strategies** - - In all these examples, the company uses **real data and research** to make informed decisions, leading to more effective and efficient management. - Total quality management (TQM) - - **Ex.** **Total Quality Management (TQM)** is an approach where a company focuses on **improving the quality** of its products, services, and processes by involving **everyone** in the organization. The goal is to make sure customers are happy and to continuously find ways to get better. Here are some easy examples: ### **1. Toyota's Kaizen Approach:** - - ### **2. Ritz-Carlton Hotel:** - - ### **3. Dell's Customer Feedback System:** - - ### **4. McDonald's Consistent Service:** - - ### **5. Airline Safety Checks:** - - TQM is all about **everyone working together** to make things better, step by step, and focusing on **quality** at every level of the organization to keep customers satisfied. **Theory scenarios for chapter 2** Here are short and simple scenarios for each theory: ### 1. Classical Management Approaches: - - - - - - ### 2. Maslow's Hierarchy of Needs: - ### 3. McGregor Theory (Theory X and Theory Y): - ### 4. Contingency Thinking: - ### 5. Evidence-Based Management: - ### 6. Total Quality Management (TQM): - Chapter 8 Management What is planning? **Planning -** The process of setting objectives and determining how best to accomplish them **Objectives and goals -** Identify the specific results or desired outcomes that one intends to achieve. **Plan -** A statement of action steps to be taken in order to accomplish the objectives. 2- steps in the planning process - - - - - 3- role of planning in the management process Planning - to set the direction - - Organizing - to create structures Controlling - to ensure results - - Leading - to inspire effort 4\. Benefits of planning - - - - Time management tips - - - Time management tips - - - - Chapter 8b Types of plans Most of us - A few of us - Very few of us - **Types of Plans Used by Managers** **Strategic plans** --- set broad, comprehensive, and longer- term action directions for the entire organization or a major division **Vision** -- clarifies purpose of the organization and what it hopes to be in the future **Tactical plans** -- specify how the organization's resources are used to implement strategy **Types of Plans Used by Managers** Functional plans -- indicate how different components within the organization will help accomplish the overall strategy - - - - - - Types of Plans Used by Managers Operational plans --- describe short-term activities to implement strategic plans - - - - Operational plans are detailed \"how-to\" guides for daily tasks. They break big goals into smaller, actionable steps so everyone knows what to do, when, and how. Think of it like a recipe for running a business smoothly. Strategic plans **Vision** - - For example IBM Vision: " to be the world's most successful and important information technology company." Manufacturing to Services For example amazon Vision: \"Our vision is to be earth\'s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online." Book Store to Marketplace **Strategy** - - **Tactical/Functional Plans** - - - - - - - - 6\. Planning tools and techniques Forecasting - - - Contingency planning - - - Scenario planning - - - - Benchmarking - - Chapter 8c 7\. Implementing plans **5 characteristics of great goals - SMART** Specific - Measurable - Timely - Relevant - Attainable - Participatory Planning - - - Chapter 10 - - - Basic Concepts of Strategy - - Sources of competitive advantage: - - - - - Levels of Strategies - - - **Strategic Analysis** - **Strategic Questions:** - - - - - Strategic Analysis Analysis of mission: - **Good mission statements identify:** - - - - **Strategic Analysis** Stakeholders - strategic accomplishments - **Strategic Analysis** Analysis of Core values: - - **Analysis of objectives:** - Strategic Analysis Analysis of organizational resources and capabilities: - - Potential core competencies: - - - - Porter's 5 Forces is a framework to analyze competition in an industry. It helps businesses understand their position and develop strategies. Here are the 5 forces, with simple explanations: 1. - - 2. - - 3. - - 4. - - 5. - - Chapter 10b **Strategy Formulation** - - 1. 2. **Corporate-Level Strategy Formulation** - **Portfolio Planning Model**: - **BCG Matrix**: - 1. 2. **BCG Matrix Categories**: - - - - Corporate-Level Strategy Formulation Global strategies: - - - Business-Level Strategy Formulation - - Chapter 10c **Strategy Implementation** - - **Must be supported in every aspect of management:** - - - - **Strategy Implementation** **Strategic planning failures that hinder strategy implementation:** [Failures of substance] - [Failures of process] Poor handling of strategy implementation - - Strategy Implementation Strategic control - Corporate governance - Strategy Implementation **Strategic leadership** - **Critical tasks of strategic leadership** - - - - - Chapter 14a 1. The **Nature of Leadership** revolves around **power**, which is the ability to influence others and drive desired outcomes. Here\'s a breakdown: ### **Power** - - ### **Sources of Managerial Power** 1. - - 2. - - ### **Sources of Position Power** 1. - - 2. - - 3. - - ### **Sources of Personal Power** 1. - - 2. - - 3. - - ### **Visionary Leadership** - - - ### **Servant Leadership** - - - - - - ### **Empowerment** - - ### **How Effective Leaders Empower Others** 1. - - 2. - - 3. - - 4. - - ### **Leadership Traits and Behaviours** #### **Important Traits for Leadership Success:** 1. 2. 3. 4. 5. 6. 7. 8. #### **Leadership Behaviour** - - - - #### **Task Concerns:** - - - - #### **People Concerns:** - - - #### **Classic Leadership Styles (Task vs. People Concerns):** 1. 2. 3. 4. By understanding these traits and behaviors, leaders can develop a style that balances the needs of the task and the people, adapting based on the situation. Contingency Approaches to Leadership Fiedler's Contingency Model - - - **Diagnosing situational control:** - - - **Task-motivated leaders are most successful in:** - - **Relationship-motivated leaders are most successful in:** - **Contingency Approaches to Leadership** [Hersey-Blanchard situational leadership model] - their followers - tasks [Leadership styles:] **Delegating** - **Participating** - situations) **Selling** - **Telling** - ### **House's Path-Goal Leadership Theory** This theory suggests that a leader\'s role is to help followers achieve their goals by providing the necessary direction, support, and resources. The leader's style should match the needs of the followers and the situation. #### **Leadership Styles for Dealing with Path-Goal Relationships:** 1. - - - 2. - - - 3. - - - 4. - - - By aligning these leadership styles with the needs of followers and the task at hand, leaders can improve motivation, performance, and job satisfaction. ### **Leader-Member Exchange (LMX) Theory** Leader-Member Exchange (LMX) theory focuses on the individual relationships between leaders and followers. It posits that leaders do not treat all their subordinates the same; instead, they form different types of relationships with each follower, leading to the concept of \"in-groups\" and \"out-groups.\" #### **Key Concepts of LMX:** 1. - - - - - - 2. - - - - - - #### **Implications of LMX Theory:** - - ### **Vroom-Jago Leader-Participation Theory** The **Vroom-Jago Leader-Participation Theory** is a decision-making model that helps leaders choose the most appropriate method for involving their team in decision-making, based on the nature of the problem and the situation. #### **Basic Decision-Making Choices:** 1. - - 2. - - 3. - - #### **Contingency Factors in the Vroom-Jago Theory:** 1. - - 2. - - 3. - - By assessing these factors, leaders can choose the most effective decision-making approach for the given situation, balancing the need for quality, acceptance, and time efficiency. **Contingency Approaches to Leadership** [Vroom-Jago leader-participation theory] Leader should use authority-oriented decision methods when: - - - - [A leader should use group-oriented and participative decision methods when:] - - - - **Contingency Approaches to Leadership** [Vroom-Jago leader-participation theory:] Benefits of participative decision methods: - - - [Potential disadvantages of participative decision methods:] - - Chapter 14c **Personal Leadership Development** - - - **Personal Leadership Development** **Emotional intelligence** [The ability of people to manage emotions in social relationships] **Characteristics of the emotionally intelligent leader:** - - - - - ### **Personal Leadership Development** #### **Gender and Leadership** - - - - - - - - - ### **Personal Leadership Development** #### **Moral Leadership** - - - - #### **Drucker's "Good Old-Fashioned" Leadership** - **Chapter 6a** ### **The Nature of Entrepreneurship** - - - - - - ### **The Nature of Entrepreneurship** #### **Social Entrepreneurship** - - - ### **Entrepreneurship and Small Business** #### **Small Business Statistics** - - - - ### **Entrepreneurship and Small Business** #### **Starting a Small Business** - - - - ### ### ### ### **Entrepreneurship and Small Business** #### [Family-Owned Small Businesses] - - - - - - #### [Small Business Development] - - - chapter 6 **Chapter 6c** New Venture Creation Business plan - - ### **Sample Business Plan Outline:** 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. ### **New Venture Creation** #### **Forms of Ownership** - - - - - - - - #### **Financing** - - - - - **Chapter 11** ### **Organizing as a Management Function** - - ### **Organization Chart** An organization chart is a diagram that outlines the reporting relationships and formal arrangement of work positions. It typically includes the following elements: 1. - 2. - 3. - 4. - 5. - - - - ### **Potential Advantages of a Functional Structure:** 1. 2. 3. 4. ### **Potential Disadvantages of a Functional Structure:** 1. 2. 3. ### **Divisional Structures** A **divisional structure** groups people together who work on the same product or process, serve similar customers, or are located in the same geographical region. This structure is commonly found in complex organizations and helps avoid some of the issues that arise with functional structures. - ### **Potential Advantages of Divisional Structures:** 1. 2. 3. 4. 5. ### **Potential Disadvantages of Divisional Structures:** 1. 2. 3. ### **Matrix Structure** A **matrix structure** combines elements of both functional and divisional structures to leverage the advantages of each while minimizing their disadvantages. This structure is commonly used in industries such as manufacturing, services, professional fields, non-profits, and multi-national corporations. ### **Potential Advantages of Matrix Structures:** 1. 2. 3. 4. 5. ### **Potential Disadvantages of Matrix Structures:** 1. 2. 3. 4. 5. ### **1. Team Structures** A **team structure** involves the use of both permanent and temporary teams to solve problems, complete special projects, and handle daily tasks. Often, these teams are cross-functional, meaning they consist of members from different functional departments. **Project teams** are typically formed to address specific tasks or projects and disband once the project is completed. ### **Potential Advantages of Team Structures:** 1. 2. 3. 4. 5. ### **Potential Disadvantages of Team Structures:** 1. 2. 3. ### **3. Boundaryless Organizations** A **boundaryless organization** eliminates many internal boundaries between subsystems and external boundaries with the environment. This structure combines elements of **team** and **network** structures, with the addition of \"temporariness.\" These organizations encourage creativity, quality, timeliness, flexibility, and efficiency. ### **Key Requirements for Boundaryless Organizations:** 1. 2. 3. 4. ### **Virtual Organization** A **virtual organization** is a specialized form of boundaryless organization. It operates through a network of external alliances that are engaged as needed, often facilitated by **information technology** (IT) and the **Internet**. These alliances allow the organization to remain flexible and adaptable while accessing external expertise and resources. ### **Organizational Designs** Organizational design refers to the process of creating structures that enable an organization to achieve its mission and objectives. The goal is to match the structure with the situational contingencies, balancing between **mechanistic** or **bureaucratic** designs on one end and **organic** or **adaptive** designs on the other. ### **Bureaucracy** Bureaucracy is a type of organizational design that is based on logic, order, and the legitimate use of formal authority. Bureaucratic designs typically include: 1. 2. 3. 4. ### **Environment and Organizational Design** The environment plays a key role in determining the most suitable design for an organization: - - - ### **Mechanistic Designs** Mechanistic designs are typically structured for **predictable goals** and are characterized by: - - - - - - ### **Organic Designs** In contrast, **organic designs** are suited for more adaptable and dynamic goals. They feature: - - - - - - ### **Contemporary Organizing Trends** Modern organizations are evolving toward more flexible structures, including: - - - - - - - - ### **Delegation** Delegation is the process of assigning responsibility, authority, and accountability: 1. 2. 3. ### **Centralization and Decentralization** - - -