University:
University of Greenwich
Course:
BUSI1602 | Global Business and Sustainability
Academic year:

2024
Views:

193

Pages:

3
Author:

Jesly V.

DESIGNING AN EFFECTIVE ORGANIZATION STRUCTURE What is Organization Structure?  Framework for dividing responsibilities and authority  Enables accountability and coordination  Visualized in organization charts showing:   Groupings of people and tasks  Communication and authority flows Formal vs. informal organization  Formal - Official structure and relationships  Informal - Personal interactions and networks Key Organizational Design Decisions Identifying Core Competencies  Decide which functions to keep in-house based on strengths  Outsource non-core functions to other companies Defining Job Responsibilities  Optimize work specialization - dividing tasks into specialized jobs  Specialization aligns skills and improves efficiency  But can bore employees and inhibit collaboration The Chain of Command  Defines authority and accountability relationships  Flows top-down through management hierarchy  Delegation hands off tasks down chain of command Span of Management  Number of direct reports - wide vs. narrow span  Wide spans mean flatter organizations, narrow spans mean taller ones Centralization vs. Decentralization  Centralization concentrates authority at top  Decentralization delegates authority downward  Balance depends on company's needs Developing an Agile Organization  Structure, policies, capabilities enabling quick response to change  Giving teams authority to act without bureaucratic delays Major Types of Structure Functional  Groups by skill sets - R&D, manufacturing, marketing etc.  Economies of scale, career growth, deep expertise  But can create disconnected silos Divisional  Self-contained units for product, process, customer, geography  Flexibility, specialized service, but duplication and misalignment Matrix  People assigned to function and project team simultaneously  Shared resources, mix of skills  But dual reporting relationships and power struggles Network  Coordinates internal and external partners  Lowers costs, adds flexibility  But vulnerability and lack of distinction Organizing the Workforce Departmentalization  Grouping people and tasks logically into departments  Vertical layers of hierarchy  Horizontal divisions of functions/divisions Distributed and Hybrid Models  Range from traditional on-site to fully virtual/distributed  Hybrid model blends on-site and WFH  Requires extra effort to maintain unified culture Organizing in Teams Teams vs. Groups  Teams have collective mission and responsibility  Groups are looser associations for information sharing Types of Teams  Problem-solving - Improve quality and efficiency  Self-managed - Manage own work with little oversight  Functional - Within a department  Cross-functional - Across multiple departments  Virtual - Members in different locations  Social networks - Informal links within and across organizations Key Takeaways  Many organizational design options, each with tradeoffs  Moving from bureaucratic to agile structures  Blend of structures often optimal  Teams essential but require careful implementation