Introduction to management 13th schemerhorn bachrach chapter 11

11

John R. Schermerhorn, Jr.
Daniel G. Bachrach

Introduction to
Management
13th edition

Chapter 11
Fundamentals of Organizing


Planning Ahead — Key Takeaways
 Describe

organizing as a management function
and the difference between formal and informal
organization structures.
 Identify the traditional organizational structures,
and the strengths and weaknesses of each.
 Identify newer horizontal organizational structures,
and the strengths and weaknesses of each.
 Explain how organizational designs are changing
in the modern workplace.

Copyright ©2015 John Wiley & Sons, Inc.


Chapter 11 Outline
1.

Organizing as a Management Function
a)
b)
c)

2.

What is organization structure?
Formal structures
Informal structures

Traditional Organization Structures
a)
b)
c)

Functional structures
Divisional structures
Matrix structures

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Chapter 11 Outline
3.

Horizontal Organization Structures
a)
b)

c)

4.

Team structures
Network structures
Boundaryless structures

Organizational Designs
a)
b)
c)

Contingency in organizational design
Mechanistic and organic organization
designs
Trends in organizational designs

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Organizing as a Management Function
 Organizing


Organizing




as a management function

Arranges people and resources to work together to
accomplish a goal

Organization structure


The system of tasks, reporting relationships, and
communication linkages

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Figure 11.1 Organizing viewed in relationship
with the other management functions

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Organizing as a Management Function
 An

organization chart is a diagram describing
reporting relationships and the formal
arrangement of work positions within an
organization. It includes:

The division of
work

Supervisory
relationships

Communication
channels

Major subunits

Levels of
management

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Organizing as a Management Function
 Informal



structures …

The set of unofficial relationships between
organization members
Social network analysis


Identifies informal structures and social
relationships in the organization

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Organizing as a Management Function
 Informal


structures and social networks

Potential advantages of informal structures:
Allow people to make contacts with others who can
help them get things done
 Stimulate learning as people work and interact
together
 Sources of emotional support and friendship that
satisfy members’ social needs


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Organizing as a Management Function

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Traditional Organization Structures
 Traditional

organization structures

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Traditional Organization Structures
 Functional






structures

People with similar skills and performing
similar tasks are grouped together into formal
work units
Members work in their functional areas of
expertise
Are not limited to businesses
Work well for small organizations producing
few products or services

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Figure 11.2 Functional structures in a business,
branch bank, and community hospital

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Traditional Organization Structures
 Potential

advantages of functional
structures:






Economies of scale
Task assignments consistent with expertise
and training
High-quality technical problem solving
In-depth training and skill development
Clear career paths within functions

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Traditional Organization Structures

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Traditional Organization Structures
 Divisional






structures

Group together people who work on the same
product or process, serve similar customers,
and/or are located in the same area or
geographical region
Common in complex organizations
Avoid problems associated with functional
structures

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Figure 11.3 Divisional structures based on product,
geography, customer, and process

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Traditional Organization Structures
 Potential

advantages of divisional
structures:







More flexibility in responding to environmental
changes
Improved coordination
Clear points of responsibility
Expertise focused on specific customers,
products, and regions
Greater ease in restructuring

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Traditional Organization Structures

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Traditional Organization Structures
 Matrix




structure

Combines functional and divisional structures

to gain advantages and minimize
disadvantages of each
Used in:

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Figure 11.4 Matrix structure in a small, multi-project
business firm

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Traditional Organization Structures
 Potential







advantages of matrix structures:

Better cooperation across functions
Improved decision making
Increased flexibility in restructuring
Better customer service
Better performance accountability
Improved strategic management

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Traditional Organization Structures

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Horizontal Organization Structures
 Team






structures

Extensively use permanent and temporary
teams to solve problems, complete special
projects, and accomplish day-to-day tasks
Often use cross-functional teams composed
of members from different functional
departments
Project teams are convened for a specific
task or project and disbanded once
completed
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Figure 11.5 How a team structure uses crossfunctional teams for improved lateral relations

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