Unit 1: Organizational Structure and Management Principles
For a company to be effective and profitable, a strong organizational structure must be in place. This structure provides a framework from which all goals are set and helps individuals and departments know where they fit within the company's organization. This unit will discuss the various approaches to organizational structure from hierarchy, centralization, departmentalization, and formalization to less traditional matrix, boundaryless, and learning organizational structures.
Completing this unit should take you approximately 2 hours.
1.1: Case Study: Toyota Struggles with Organizational Structure
Read the introduction and section 7.1, which includes a case study of the Japanese automaker Toyota. You will uncover some of the issues that the company encountered in 2009 and 2010 as it tried to make sense of millions of vehicle recalls due to unintended acceleration in its cars. Consider how important management practices could have been been applied to improve the situation at Toyota.
1.2: Coordinating Individuals Is a Big Part of Organizational Structure
Read this section, which discusses the difference between centralization and decentralization (regarding who will make strategic and core decisions), as well as how to apply this information within the structure of an organization. This section also covers the topics of organizational hierarchy, departmentalization, and formalization, which are the components of the structure of an organization.
1.3: Contemporary Organizational Structures: Responding to Business Trends
Read this section, which discusses how to identify a matrix organization; how to eliminate barriers as identified within a boundaryless organization; and how to change organizational behavior.
This video describes some of the factors that frequently obstruct organizational progress and offers insight into how we can overcome these obstacles in order to move forward as a society. While the focus of the talk is on the field of education, the principles discussed here can be applied to any business environment.