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Lecture Management (2nd edition) – Chapter 10: Structuring organizations

This chapter’s objectives are to: Explain how differentiation and integration define performance cultures, describe how managers vertically organize processes and teams to centralize decision making, describe how mangers horizontally organize processes and teams to distribute decision making throughout the organization,. | Chapter 10 Structuring Organizations Learning Objectives Explain how differentiation and integration define performance cultures Describe how managers vertically organize processes and teams to centralize decision making Describe how mangers horizontally organize processes and teams to distribute decision making throughout the organization Show how managers combine vertical and horizontal approaches to organizational design in order to be more adaptive Hierarchy Vertically organized structure of power relationships, where the top level holds the most power and resources Every organization needs some type of structure in place to be successful Unites the different units of a company Brings units in tune with the company’s underlying principles, core purposes, goals, and objectives The Basics (p. 256) Hierarchy comes in many states The Basics (cont.) Figure 10.1 Designing performance cultures (p. 256) Through the creation of an organizational culture, managers can, consciously or . | Chapter 10 Structuring Organizations Learning Objectives Explain how differentiation and integration define performance cultures Describe how managers vertically organize processes and teams to centralize decision making Describe how mangers horizontally organize processes and teams to distribute decision making throughout the organization Show how managers combine vertical and horizontal approaches to organizational design in order to be more adaptive Hierarchy Vertically organized structure of power relationships, where the top level holds the most power and resources Every organization needs some type of structure in place to be successful Unites the different units of a company Brings units in tune with the company’s underlying principles, core purposes, goals, and objectives The Basics (p. 256) Hierarchy comes in many states The Basics (cont.) Figure 10.1 Designing performance cultures (p. 256) Through the creation of an organizational culture, managers can, consciously or unconsciously, design a performance culture Differentiation – process through which managers divide labor based on tasks and functions (p. 257) Integration – horizontal coordination between functions, departments, and organizational activities Organizations must strike a balance between differentiation and integration The Basics (cont.) Structure must be modified to adapt to changes in the internal and external environments Organic 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 effectively The Basics (cont.) Specialization (p. 258) Form of differentiation Focusing a group or individual’s activities based on strengths, aptitudes, or skills Coordination Synchronization of an organization’s functions to ensure efficient use of resources in pursuit of goals and objectives The Basics (cont.) To give .