MGT 250 Chapter Notes - Chapter 9: Job Performance, Departmentalization
9 May 2018
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Maria Noor Ch. 9: Designing Adaptive Organizations Oct. 16th, 2017
▪ 9-1: Departmentalization: subdividing work & workers into separate organizational units that take
responsibility for completing particular tasks.
• Organizational Structure: vertical & horizontal configuration of departments, authority, & jobs w/in a
company.
➢ Who reports to whom?
➢ Who does what?
➢ Where is the work done?
• Organizational Process: collection of activities that transforms inputs into outputs that customers value.
➢ How do things get done?
• 9-1a: Functional Departmentalization: organizes work & workers into separate units responsible for
particular business functions/areas of expertise.
➢ Not all functionally departmentalized companies have the same functions.
• 9-1b: Product Departmentalization: organizes work & workers into separate units responsible for
producing particular products/services.
➢ Managers & workers develop broader set of experiences & expertise related to entire product line.
➢ Makes it easier for top managers to assess work-unit performance.
• 9-1c: Customer Departmentalization: organizes work & workers into separate units responsible for
particular kinds of customers.
➢ Focuses organization on customer needs rather than on products/business functions.
➢ Creates separate departments to serve specific kinds of customers.
➢ Allows companies to specialize & adapt products & services to customer needs & problems.
• 9-1d: Geographic Departmentalization: organizes work & workers into separate units responsible for
doing business in particular geographic areas.
➢ Helps companies respond to demands of different markets.
➢ Reduces costs by locating unique organizational resources closer to customers.
➢ Can lead to duplication of resources.
• 9-1e: Matrix Departmentalization: hybrid structure in which 2 or more forms of departmentalization are
used together.
➢ Most common matrix combines product & functional forms of departmentalization.
➢ Allows companies to manage in efficient manner.
➢ Efficiency comes from avoiding duplication.
➢ There is a high level of coordination required to manage complexity involved in running large, ongoing
projects at various levels of completion.
o Simple Matrix: managers in diff. parts negotiate conflicts & resources.
o Complex Matrix: managers report to matrix managers, who help sort out conflicts & problems.
▪ 9-2: Organizational Authority:
➢ Authority: the right to give commands, take action, & make decisions to achieve organizational
objectives.
• 9-2a&b: Chain of Command & Line Vs. Staff Authority: vertical line of authority that clarifies who
reports to whom throughout organization.
➢ Unity of Command: management principle that workers should report to just one boss.
➢ Line Authority: right to command immediate subordinates in chain of command.
➢ Staff Authority: right to advise, but not command, others who aren't subordinates in chain of
command.
➢ Line Function: activity that contributes directly to creating/selling company’s products.
o EX: Activities that take place w/in manufacturing & marketing departments.
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Document Summary
Oct. 16th, 2017: 9-1: departmentalization: subdividing work & workers into separate organizational units that take responsibility for completing particular tasks, organizational structure: vertical & horizontal configuration of departments, authority, & jobs w/in a company. Where is the work done: organizational process: collection of activities that transforms inputs into outputs that customers value. How do things get done: 9-1a: functional departmentalization: organizes work & workers into separate units responsible for particular business functions/areas of expertise. Not all functionally departmentalized companies have the same functions: 9-1b: product departmentalization: organizes work & workers into separate units responsible for producing particular products/services. Managers & workers develop broader set of experiences & expertise related to entire product line. Makes it easier for top managers to assess work-unit performance: 9-1c: customer departmentalization: organizes work & workers into separate units responsible for particular kinds of customers. Focuses organization on customer needs rather than on products/business functions. Creates separate departments to serve specific kinds of customers.
