LDR-301S Mod 1 Lesson 2 Leading Organizations org hierarchy.pdf
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Course
LDRS 320
Institution
LDRS 320
1. functional structure Strength: Specialization strengths and weak- 1. companies use a functional organizational structure, nesses people with similar knowledge and skills are grouped together. This makes it possible for employees to become specialists in their field.
Strength Productivity
1. Sp...
SNCOA LDR-301S Mod 1 Lesson 2 Leading Organizations org hierarch
and structure
Study online at https://quizlet.com/_d1ep5d
1. functional structure Strength: Specialization
strengths and weak- 1. companies use a functional organizational structure,
nesses people with similar knowledge and skills are grouped
together. This makes it possible for employees to be-
come specialists in their field.
Strength Productivity
1. Specialization leads to operational efficiencies and
enhances productivity levels.
2. Because of their expertise, workers with special-
ized skills can perform tasks quickly, efficiently and
with more confidence, thus reducing the occurrence of
work-related mistakes.
3. The main goal of functional structures in organiza-
tions is to bring the entire human and informational
resources together to meet the organization's goal.
Weakness: Management Issues
1. Communication in organizations with functional or-
ganizational structures can be rigid because of the
standardized ways of operation and the high degree of
formalization.
2. decision-making process slow and inflexible.
3. Lack of innovation and restricted views of organiza-
tional goals, along with too much focus
Weakness: Unit Coordination
1. their level of cooperation with each other is some-
times compromised.
2. groups may have difficulty working well with each
other as they may be territorial.
ultimately can bring down production levels overall,
and the company-wide employee commitment toward
meeting organizational goals
2. define organization- An organizational structure model functions as the
al structure blueprint of a company's employees and job titles
3. Identifying types of flat, mid-sized or tall
Organizational Hier-
archy Structure
, SNCOA LDR-301S Mod 1 Lesson 2 Leading Organizations org hierarch
and structure
Study online at https://quizlet.com/_d1ep5d
4. Flat Structures 1. have very few echelons or tiers in a company with a
flat organizational structure.
many small companies have flat organizational struc-
tures because of the lack of middle management. The
president of the company may employ just a few man-
agers and clerical workers until the organization grows.
5. Mid size and a. functional organizational Structure
larger companies where technologies, people and tasks are divided into
tend to use separate functional groups such as finance, opera-
a _______________ tions, marketing, human resources
structure, b. each group works independently of the others.
c. Companies that use functional organizational hier-
archy structures split their departments into functional
areas.
1. accounting, finance, engineering, and marketing
6. Companies that use divide departments by product categories.
a product organi- i. Department stores and retailers use a product orga-
zational hierarchy nizational structure.
structure..... 1. example, an executive, such as the vice president of
men's clothing, may report to the president.
7. functional organi- vice presidents, directors, and managers of marketing,
zational hierarchy for example, instead of product-oriented titles.
structures have....
8. Benefits of a prod- employees can specialize in a particular product line.
uct organizational 1. specialization fosters the production and the distrib-
hierarchy structure ution of all products.
2. can be particularly useful when product quality is
essential.
.
9. Companies that use efficiently group employees by knowledge, skills and
functional organi- resources
zational hierarchy
structures
, SNCOA LDR-301S Mod 1 Lesson 2 Leading Organizations org hierarch
and structure
Study online at https://quizlet.com/_d1ep5d
10. Organizational Hi- 1. duplication of resources
erarchy Disadvan- a. Example, the housewares, sporting goods and
tages men's clothing departments in a retail chain may re-
quire separate marketing managers. Three marketing
managers may not be practical and can drive up labor
costs.
2. May have difficulty coordinating activities with other
departments.
For example, a product manager in an electronics
company may not know what engineering is doing to
correct a certain product defect. Functionally oriented
departments may also vie for budget money
11. What is Divisional 1. Divisional Org Structures usually consists of several
Org Structure? parallel teams focusing on a single product or service
line.
a. EX: product lines are the various car brand under GM
or Microsoft's software.
b. Service line ex Bank of America's retail. Commercial,
investing and asset management arms.
2. Unlike department divisions are more autonomous
each with its own top exec - often VP
a. Typically manage their own hiring, budgeting, and
advertising.
3. Small business rarely uses a divisional structure.
12. Divisional org struc- the ability to segregate large sections of the company's
ture gives a larger business into semi-autonomous groups
business enterprise
....
13. Advantages of Divi- 1. Divisions work well because they allow a team to fo-
sional Org Structure cus upon a single product or service, with a leadership
structure that supports its major strategic objectives.
a. Having its own president or vice president makes
it more likely the division will receive the resources it
needs from the company.
b. allows it to build a common culture and esprit de
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