Management and Organization

Behavior
Organization
Structure
 Differentiation

• Vertical – authority
• Horizontal – functioning/specializing
• Integration – communication and control
 Leadership

• The board of directors

• Chairman of the board
• CEO
• Corporate governance
 B o a r d o f D ire c to r s

C h ie f E x e c u tiv e O ffic e r

E x . V P F in a n c e E x. V P H R E x . V P P la n n in g L e g a l C o u n c il G ro u p P re s . A G ro u p P re s . B

D iv . G M 1 D iv G M 2 D iv . G M 3
A Wide Span of Control
A Narrow Span of Control
Insert Figure 15.7 here
Hierarchy of Authority

 Authority: The power that enables a

person in a higher position to hold a person
in a lower position accountable for his or
her actions. Carries with it the
responsibility (accountability) for using
organizational resources effectively.
 Span of control: The number of
subordinates who report to a manager.
 Tall organizations have many levels in the
hierarchy relative to their size; flat
organizations have few.
 Management

• Delegation
• Advantages:
 OJT for long haul
 Closer to the action

 Motivation

 Acceptance

 Monkey off of the manager’s back

• Disadvantages
 Time in the short run
 Horizontal Structure

• Line vs. Staff

• Form of structure
Functional Structure

An organizational structure that groups

together people who hold similar
positions, perform a similar set of tasks,
or use the same kinds of skills.
 Functional Structure

• Economies of scale
• Monitoring the field
• Performance standards
• Specialized training/skills
• Focused on one area (limited misc. work)
• Line of communication is simple
• Promotional/career opportunities are clear
• Easiest to set-up
Insert Figure 15.3 here
 Divisional Structures

Advantages
• Information needs are managed easily
• Full time commitment to area (product,
etc.)
• Task is clear
• Broad exposure and training
 The Divisional Structure

Possible disadvantages
• Increased costs
• Duplication of functions
• Miscommunication across divisions
• Competition for resources
 Insert Figure 15.4 here

Note: only include part A

 Insert Figure 15.4 here

Note: only include part B

 Insert Figure 15.4 here

Note: only include part C

 The Matrix Structure

• Complex network of reporting

relationships among product teams and
functions
• People and resources grouped by
• Function
• Product
A Matrix Structure
 Network Structure

• Also called dynamic, network, modular or

virtual organizations
• Tied together with contracts (outsourced)
 Integration

• Standardization
• Formalization
• Planning
• Mutual adjustment
 Mutual Adjustment

• Direct contact
• Liaison
• Task forces
• Teams
• Product managers
• Matrix organizations
Using a Team to Increase Coordination
 Bureaucracy and Beyond

• Mechanistic structures
• Organic structures
• Independent divisions
• Conglomerates