1. Organizational Structures

2. Organizing Organizational Structure Organizational Design
The formal structure of task and reporting relationships
Organizational Design
The process by which managers make specific organizing choices that result in the construction of a particular organizational structure

3. How do Managers Design a Structure
How to group tasks into individual jobs
How to group jobs into functions and divisions
How to coordinate and allocate authority in the organization among jobs, functions, and divisions
Whether to pursue a more formal or flexible structure

4. Job Design
The process by which managers decide how to divide tasks into specific jobs
how does McDonald’s divide up their workers?
How does Subway divide up their workers?

5. Organizational Chart
You are the President of “Colonel By Enterprises” and you have to organize the following employees. On a separate sheet of paper, draw an organizational chart.
VP of Marketing
Director of Personnel
VP of Production
VP of Finance
Mkt’g Mgrs for 3 regions
VP of R & D
Prod’n Mgrs for 3 Product Lines
Admin Ass’t to President
R & D dept of 150 people
Sales Force of 100 people
Production Force of 500 People
Quality Control Officer

6. Why Do We Have Org Structures?
As organizations get bigger there is a greater need for information because:
volumes of work are higher
the organization is increasingly multi-directional
more of the work is done in a non-standardized way
As organizations get bigger there is greater differentiation, which means:
increased task specialization
attitudes, values, beliefs
skills, experiences

7. Why Do We Have Org Structures?
The worse the informal relationships
the larger the organization or sub-unit
the further the physical distance between sub- units

8. Functional Structure CEO Administration Human Resources Finance
Marketing
Marketing Research
Sales
Production
Plant A
Plant B

9. Product Structures CEO Buick Admin Function Production Plants Cadillac
GMC

10. Matrix Structure General Manager Project A Project B Project C
Administration
Finance
H.R.
Project B
Team 1
Team 2
Project C
Production
Plant A
Plant B
Marketing
Mkt Res
Sales
Project A
Team 1
Team 2

11. Geographic Structures
CEO
Central Region
Admin Function
Finance
Northern Region
Southern Region

12. Market Structure CEO Large Business Customers Admin Function Finance
Small Business Customers

13. Structural Forms of Organizations
Type of Org
Functional
Production
Matrix Structure
Benefits
Promotes integration within functions, simple
Promotes integration within and across functions, but only as they relate to products/markets/etc.
Dual focus on product/market/etc. and on functions
Problems
Hinders integration between functions
Hinders integration between products/markets/etc. and within functions in the total organization
Duplication of resources
High tension, Diffused focus, Requires high levels of skills

14. Positions Within an Organization
Chairman of the Board
Chief Executive Officer
President
Vice President
Finance
Marketing
Administration
Production

15. Corporate Governance
The system of control and performance monitoring of top management
They are formally charged with ensuring that an organization operates in the best interest of the owners of the company – (the shareholders)
Board of Directors is selected
Chosen because of their selective expertise

16. Board of Directors their Job
Establish polices for company
Review performance of CEO
Approve annual budget
Set salaries and compensation of company management

17. Chairman of the Board
Board