Most BSBA students enjoy studying "organization" in the Principles of Management course. The reason, I suppose, is that each student can be creative when working on a management problem that involves functional areas and lines of responsibility.
I think it is safe to say that there is rarely a "school solution" for management problems that touch on organizational matters. More than one student solution will work, and sometimes students propose organizational structures that are superior to those in textbooks.
In general, you should favor organizational structures that promote the twin goals of efficiency and effectiveness throughout the organization. Overly restrictive, highly structured organization plans sometimes inhibit communications. Other comments can be made about alternative organizational structures.
Here are some key concepts in organizational theory:
- Tall or flat--A tall organization has short spans of control, is directed from above. A flat organization has fewer layers in the bureaucracy and it allows independent actions by lower-level managers.
- Functional areas--We can organize according to functions; i.e., finance, marketing, production, administration, etc.
- Product lines--A clothing company may organize according to women's clothing, men's clothing, children's wear and so forth.
- Geographic areas--Organization by regions (withing the USA) or by countries (multinational companies).
- Customers--Banks sometimes organize according to types of customers served; i.e., retail, wholesale, commericial, home buyers, small businesses, etc.
- Hybrid--These organizations combine elements of two or more traditional forms of organizational structure.
A final note: Sometimes organizations are created to solve a specific problem (for example, to market in Third World countries), but after they complete their work these ad hoc organizations dissolve. They are also called matrix organizations. Next: leading!
Comment Preview