 The framework of task-and-authority relationships in a company that coordinates and motivates employees to work together toward a common goal.

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Presentation transcript:

 The framework of task-and-authority relationships in a company that coordinates and motivates employees to work together toward a common goal.

◦ A structure that groups people together because of their expertise or the type of activity they do (typically into departments).

 Coordination advantages  Motivational advantages

1. Problems when the range of goods and services a company makes increases 2. Problems as companies attract customers with different needs 3. Problems when companies expand nationally and globally

Product structure

 Geographic structure ◦ a structure in which divisions are created to serve the needs of customers in a particular region, country, or world area

Figure 8.6

 Coordination advantages  Motivational advantages

 Operating costs are much higher  Having more managers can result in communications problems, slower decision making, and lower performance

 Matrix Structure ◦ a structure that groups people and resources in two ways simultaneously: by function and by product.

Matrix Structure

1. The company can develop new products more rapidly 2. It can maximize communication and cooperation between team members 3. Maximizes innovation and creativity.

 Dual reporting relationships  Bosses come into conflict over precisely who is in charge of which team members and for how long.  Employees feel the lack of a stable “home base”.

Figure 8.9

 Get into your teams and complete this task in 20 minutes;  You and your team mates are setting up a new business in the maritime line. Discuss and submit; 1. The vision of your company. 2. Construct an organisation structure for your company.

Scenario: Your firm is expanding to Jakarta and Vietnam. You and your HR department staffs are sitting in a meeting to present to the CEO on; 1. The new firm structure (organization chart). 2. How many new people would you need? 3. How would you attract the new people? 4. What specific qualifications must these new staffs possess? Scenario: Your firm is expanding to Jakarta and Vietnam. You and your HR department staffs are sitting in a meeting to present to the CEO on; 1. The new firm structure (organization chart). 2. How many new people would you need? 3. How would you attract the new people? 4. What specific qualifications must these new staffs possess?