OrgMan 12 Notes
OrgMan 12 Notes
2. Divisional Structures
- groups together people who work on the same
product or process, serve similar customers or
are located in the same area or geographical
region.
- are common in complex organizations with
diverse operations that extend across many
- Each department has a manager or director products, territories, customers, and work
who answers to an executive a level up in the processes.
hierarchy who may oversee multiple
departments.
o One such example is a director of
marketing who supervises the marketing
department and answers to a vice
president who is in charge of the
marketing, finance, and IT divisions.
- ADVANTAGE:
o Employees are grouped by skillset and
function, allowing them to focus their
collective energies on executing their
roles as a department.
- CHALLENGE:
o lack of inter-departmental
communication, with most issues and
discussions taking place at the managerial
level among individual departments.
For example, one department
working with another on a project
may have different expectations or
details for its specific job, which
could lead to issues down the road.
o with groups paired by job function, there
is the possibility employees can develop
“tunnel vision” – seeing the company
solely through the lens of the jobs
employee’s job function
- ADVANTAGE:
o greater flexibility to a large company
with many divisions, allowing each one
to operate as its own company with one
or two people reporting to the parent
company’s chief executive officer or
upper manager staff. Instead of having all
programs approved at the very top levels,
those questions can be answered at the
divisional level.
- CHALLENGE:
o by focusing on divisions, employees
working in the same function in different
divisions may be unable to communicate
well between divisions.
o also raises issues with accounting
practices and may have tax implications.
- ADVANTAGES:
o employees can share their knowledge
across the different functional divisions,
allowing for better communication and
understanding of each function’s role.
o And by working across functions,
Ex: McDonald’s - divided into components that are employees can broaden their skills and
given responsibilities based on operational
requirements. Each division handles a specific
operational area or set of strategic objectives.
3. Matrix Structure
- combines the functional and divisional
structures. In effect, it is an attempt to gain the
advantages and minimize the disadvantages of
each. knowledge, leading to professional
- employees may report to two or more bosses growth within the company.
depending on the situation or project. - CHALLENGES:
o For example, under normal functional o can be tough reporting to multiple bosses
circumstances, an engineer at a large and knowing what to communicate to
engineering firm could work for one boss, them.
but a new project may arise where that that is why it is very important for
engineer’s expertise is needed. employees to know their roles,
o For the duration of that project, the responsibilities, and work priorities.
employee would also report to that o reporting to multiple managers may add
project’s manager, as well as his or her confusion and conflict between managers
boss for all other daily tasks. over what should be reported.
o if priorities are not clearly defined,
employees, too, may get confused about
their roles.
- Because the central core is relatively small and
the surrounding networks can be expanded or
shrunk as needed, the network structure helps
lower costs and improve flexibility in dealing
with changing environments.
- It is quite a contrast to the old model in which
organizations basically owned everything they
needed.
- helps visualize both internal and external
relationships between managers and top-level
management.
- They are not only less hierarchical but are also
B. Horizontal Organization Structures more decentralized and more flexible than
- Gives an idea on how to break certain other structures.
disadvantages of a vertical structure - idea behind: based on social networks.
o Its structure relies on open
1. Team Structures communication and reliable partners;
- Extensively use permanent and temporary both internal and external.
teams to solve problems, complete special o viewed as agiler than other structures
projects, and accomplish day-to-day tasks because it has few tires, more control, and
- made of teams working towards a common the bottom flow of decision making.
goal while working on their individual tasks.
- less hierarchical, and they have flexible
structures that reinforce problem-solving,
decision-making, and teamwork.
- have changed the way many industries work.
o Globalization has allowed people in all
industries around the world to produce
goods and services cooperatively.
o Especially, manufacturing companies
must work together with suppliers around
the globe while keeping the cost to a
minimum while producing high-quality
products.
C. Boundaryless Structures
2. Network Structures
- Uses information technologies to link with 1. Boundaryless Organization
networks of outside suppliers and service - Eliminate internal boundaries among
contractors subsystems and external boundaries with the
- Organizations have a central core of full-time external environment
employees surrounded by “networks” - Team + Network + “Temporariness”
composed of outside contractors and partners - Key requirements:
that supply essential services. o Absence of hierarchy
o Empowerment of team members surrounding virtual organizations
o Technology utilization from a knowledge management
o Acceptance of impermanence perspective.
- there are not any major structures and the main
approach to business is to allow information to Week 4
flow freely and ideas to be the driving force of Planning
efficiency, innovation, growth in the company.
- Such a company is built to do one thing very 1. Discuss the nature of planning
well: to survive in a world that is constantly 2. Compare and contrast the different types of
changing. plans
- Internal to the boundaryless organization,
spontaneous teamwork and communication XVII. PLANNING AND GOAL
replace formal lines of authority.
- Meetings and information sharing happen
SETTING IN
continuously. MANAGEMENT
- People work together in teams that form and (Video)
disband as needed.
- There is little hierarchy but lots of PLANNING
empowerment and technology utilization; - considered the most fundamental.
impermanence is accepted. - everything else stems from planning.
- Knowledge sharing is both a goal and an - the economic, political, and social turmoil of
essential component. recent years has sparked a renewed interest in
organizational planning, particularly planning
for crises and unexpected events.
- A goal is desired future state that the
organization wants to realize.
o Goals are important because
organizations exist for a purpose, and
goals define and state that purpose.
- Plan
o a blueprint specifying the resource
o allocations, schedules, and other actions
2. Virtual Organization necessary for attaining goals.
- takes the boundaryless concept to the extreme. - The Concept of Planning
- operates as a shifting network of alliances that o usually incorporates both goals and plans.
are engaged as needed using IT and the o Planning means determining the
Internet. organization’s goals and defining the
- a flexible network of independent entities means for achieving them.
linked by telecommunication and computing
technologies to share skills, knowledge, and
access to expertise in non-traditional ways. IMPORTANCE
- a form of cooperation involving companies, 1. Provides Direction
institutions, and/or individuals delivering a - Setting objectives
product or service based on a common - Determine the best ways to accomplish the set
business understanding. objectives
o Units participate in the collaboration and - Deciding what you exactly want to accomplish
present themselves as a unified and finding the best way to accomplish this
organization. 2. Creates a solid platform for other function
- A virtual organization is one whose employees of management
are spread geographically and communicate - organizing: allocate and arrange
via phone, email, and the internet. resources to accomplish tasks
o The concept explores - leading: guide human resources to
technologies and issues ensure high task output
- controlling: monitor task output and take 4 Levels of Goals and Plans in an Organization
necessary corrective measures – mission, strategic, tactical, and operational goals
and plans.
managers think about the future rather than 1. The Formal Mission Statement: a broadly
thinking merely in terms of day-to-day activities. stated definition of an organization’s basic
business scope and operations that
PLANNING PROCESS distinguishes it from similar types of
- must focus on objectives and goals that organizations.
identify specific or desired results 2. Strategic
- Goals and objectives should push you to
achieve substantial results plans: include action steps by which an
- Always keep in mind to create achievable organization intends to attain strategic goals.
plans (action steps) goals: are a broad statement of where an
- With proper planning comes proper organization wants to be in the future; pertains
implementation to the organization as a whole rather than to
specific divisions or departments.
1) Define Objectives 3. Tactical
- Identify desired outcomes in very specific 4. Operational
ways; know where you want to go; be very plans: identify the specific procedures or
specific that you will know when you have processes needed at lower levels of the
reached your target or how far off the mark organization, such as individual departments
you are and employees.
goals: are a specific, measurable result that is
2) Determine where you stand vis-à-vis expected from departments, work groups, and
objectives individuals.
- Evaluate current accomplishments with the
desired ???
XVIII. TYPES OF PLANS
- According to Length of implementation
3) Develop premises regarding future
Long-Term
conditions
- Anticipate future events; create alternative o 3 or more years;
scenarios for possible events; identify which o gets shorten because of external
scenarios will help or hinder you from environmental forces (ex:
reaching your objectives technology, laws keep on
changing)
4) Analyze alternatives and make a plan o sets the direction of the
- List and evaluate possible actions; among organization as a whole = general
alternatives that can help, choose the one that objectives. and goals
will most likely to accomplish your objectives; Short-Terrm
describe what must be down and follow the o 1 year or less
best course of action. o Based on long-range plans and
sets the situation for lower-level
5) Implement the plan and evaluate results management
- Take action and carefully measure your o Department or unit specific
progress toward objectives; follow through by
doing what is planned, its requirements;
results; corrective actions; revise plans if - According Frequency of use
needed Single use
- Change is constant, be flexible o For Unique, one-time-only events
Standing
o Used repeatedly to handle
frequently recurring events
- According to Who plans XIX. SEC (Securities and
Strategic Plans – Top Management
o Identifies along-term directions for
Exchange Commission)
5. the government agency tasked with
the organization regulating and monitoring business
o Creates a framework for allocating organizations and corporations
resources maximum
Performance impact Affiliate
o Vision mission goals and 6. a company associate that holds a minority
objectives stake in the ownership of the parent
Tactical plan – Middle Management company
o Aka functional plan
o Helps to implement all or parts of Subsidiary
strategic plan 7. a company owned by another company or
o Specifies how different a parent company
operations within the organization
will help advance the overall
strategy FOREIGN BUSINESS ORGANIZATIONS
Operational Plan – Low Management 1. Branch Office
o Identifies short-term activities to 8. organized to do the activities of the
implement strategic plans head office from the host country
o Describes what needs to be done
o Policies and procedures 2. Representative Office
o Can be single-use plans (events- 9. fully supported by the head office and
based) does not obtain funds from its main office
overseas
PRACTICES OF MANAGEMENT
PREVIOUS REV: (don’t mind) 1. Coordination
12. synchronization and integration of
activities
2. Effectiveness
13. degree to which objectives are achieved
14. doing the right thing
15. focuses on the results Cultural Dimensions
28. Studied by Geert Hosfstede
3. Efficiency 1. Power Distance - the degree to which a
16. comparison of what is actually produced society accepts or rejects the unequal
or performed distribution of power among people in
17. how you maximize resources organizations and the institutions of society
18. doing things right 29. E.g.: US subordinates use the name or
19. focuses on the process nickname
Regional Alliances
49. a union in a particular regional area that
provides and helps in developing
countries which will mutually
benefit in the future
1. The European Union (EU)
50. composed of 27 democratic countries
2. North Ameriacan Free Trade Agreement
(NAFTA)
51. reached by the Mexican, Canadian, and
U.S. governments
3. Association of Southeast Asian Nations
(ASEAN)
52. 10 Southeast Asian nations
4. African Union (AU)
5. East African Community (EAC)
6. South Asian Association for Regional
Cooperation (SAARC)
ASEAN
Biggest problem: difficult to create common
standards because national standards remain so far
apart