MoE lecture 2
Organizational structure: the jobs to be done, how these jobs relate to one other.
Main elements that determine an organization:
- Purpose/ goal
- Mission
- Strategy
Project manager = highest
Manager programming team, manager promotion team, manager catering team = 2 nd place
Team members = 3rd place.
As an organization grows, the need for specialization grows as well. E.g: Disney did it
themselves first, now people do it for them.
Advantage’s specialization:
- Are learned more easily
- Can be performed more efficiently
- Easier to replace people who leave the organization
Disadvantages:
There is a danger of overspecialization
- People may get bored and careless
- Derive less satisfaction from their job
- Lose sight of their role in organization
After specialization, look at departmentalization. A department is a group of jobs in a logical
unit.
1. Division of activities: control and coordination are narrowed and made easier
2. Profit centers: managers can more easily see how units are performing
How…
Functional: based on the primary functions performed.
small organizations. Production, marketing, sales etc.
Product: based on the goods/services produced or sold.
Some brands have other brands too. Pepsi - lays.
Process: based on the production process used.
Fresh food vs canned food.
Customer: based on the primary type of customers.
business to business industry vs business to consumer industry.
Geographic: based on the geographic segmentation of organization units.
Usually, organizations contain a mix of different types of departmentalization. (look at pic 8-
3)
Organizational structure: the jobs to be done, how these jobs relate to one other.
Main elements that determine an organization:
- Purpose/ goal
- Mission
- Strategy
Project manager = highest
Manager programming team, manager promotion team, manager catering team = 2 nd place
Team members = 3rd place.
As an organization grows, the need for specialization grows as well. E.g: Disney did it
themselves first, now people do it for them.
Advantage’s specialization:
- Are learned more easily
- Can be performed more efficiently
- Easier to replace people who leave the organization
Disadvantages:
There is a danger of overspecialization
- People may get bored and careless
- Derive less satisfaction from their job
- Lose sight of their role in organization
After specialization, look at departmentalization. A department is a group of jobs in a logical
unit.
1. Division of activities: control and coordination are narrowed and made easier
2. Profit centers: managers can more easily see how units are performing
How…
Functional: based on the primary functions performed.
small organizations. Production, marketing, sales etc.
Product: based on the goods/services produced or sold.
Some brands have other brands too. Pepsi - lays.
Process: based on the production process used.
Fresh food vs canned food.
Customer: based on the primary type of customers.
business to business industry vs business to consumer industry.
Geographic: based on the geographic segmentation of organization units.
Usually, organizations contain a mix of different types of departmentalization. (look at pic 8-
3)
