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Transcript of ORGANIZATIONAL STRUCTURE
I. What is organizational structure?
What is organizational structure?
The role of organizational structure
2. Harnessing Experience
3. Decision Making
5. Span of control
Types of organizational structure
Organizational structure of Kentucky Fried Chicken (KFC)
A company will structure its organization according to products and services it offers.
Organizing departments by customers is efficient because of diversity.
The software company may sell to consumers, corporations, financial institutions, hospitals and health clubs.
Using the experience of groups to accomplish tasks and projects.
Structure organizations => make the best decisions possible
Easier to make local decisions
from the top of the organization down
directors and managers
Span of control pertains to the number of employees an executive or manager oversees.
- Similar skill => group together into work units
- Economies of scale with efficient use of resources.
- Difficulties in determining responsibilities for environmental changes.
- Groups together people working on the same product, in the same area,...
- Sometimes called "market structures".
- Groups together people and jobs working on a single product or service.
- Clearly identify costs, profits, problems, and successes in a market area with a central point of accountability.
- Also called "area structures".
- Also called "Market Structures".
- Groups together jobs and activities that are part of the same processes.
- Take the form of product-purchasing teams, order-fulfillment teams, and systems-support teams for the mail-order catalog business.
- More flexibility in responding to environmental changes.
- Increase costs through the duplication of resources and efforts across division
- Combines functional and divisional approaches to emphasize project or program teams.
- Increased flexibility in adding. removing, and/or changing operations to meet changing demands.
- Two-boss system is open to power struggles and members may be frustrated
Usage of Matrix Structures:
- Structure has gained strong foothold in the workplace, with usage in diverse
settings like manufacturing, service industries, professional fields, and the nonprofit sector.
- Also found in multinational corporations.
- Common in organizations pursuing growth strategies in dynamic and complex
II. The role of organizational structure
III. Types of organizational structure
IV. Organizational structure of Kentucky Fried Chicken (KFC)
- Share technical expertise, interests, and responsibilities
- Not limited to businesses
- Work well for small organizations
- Tend to work best in relatively stable environments
- Work within areas of expertise
- Task assignments are consistent with expertise and training.
- High-quality technical problem solving.
- In-depth training and skill development within functions.
- Clear career paths within functions.
- Functional Chimneys Problem
- Uses permanent cross-functional teams to integrate functional expertise.
- Belong to at least two formal groups at the same time.
- Report to two bosses.
- Better customer service as there is always a program, product, or project manager to answer questions.
- Better performance accountability through the program, product, or project managers.
- Improved strategic management
- Team meetings are time-consuming
- Teams may develop "groupitis"
- Popular among organizations with diverse operations
- "Divisions" are more autonomous compare to the "department".
- Is broken down into four parts: Product, Geographic, Customer, and Process
- Groups together people and jobs performed in the same location.
- Commonly used in international operations.
- Group together people and jobs that serve the same customers or clients.
- The major appeal is the ability to best serve the special needs of the different customer groups
- Simplified coordination across functional departments.
- Clear points of responsibility for product or service delivery.
- Expertise focused on specific customers, products, and regions.
- Accurate measurement of performance
- Greater ease in changing size by adding or deleting divisions.
- Create unhealthy rivalries as divisions compete for resources and attention
- Reduce economies of scale
- Emphasize division needs and goals
- Reduction of in-depth expertise
- Competition amongst divisions
Quality Control Department
• Shows the marketing position
• Give the suggestion
• Provide competitors’ information
• Introduce the new policies
– Ensure adequate funds are available for resources
– Ensure costs are controlled
– Establish and control profitability levels
– Payment of bills and expenses
– Payment of salaries
– Provides information for managers and decisionmakers within business
– Facilitate Marketing Department
– Study to identify most suitable methodology
– Participate in the pre discussions with the client
– Phase of processing food
– Administration of restaurant
– Handling the problems
– Train the employees
– Describe the job
– Analyse the job
– Determine the salaries
– Reviewing application form
– Interviewing applicants
– Inducting new employees
– Appraising employees performance
– Make a decision about the employees training
– Provide a career advice to subordinates
• QC & QA (Quality control & Quality Assurance)
• Test the new taste
Satisfy customers through offering high quality
Great pride in serving each other
Seek continuous improvement
- Shows the marketing position of the organization.
- Shows the market share of KFC.
- Gives the suggestion to the higher authorities for the future improvement.
Span of control