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In this video, we will explain about management organizations.

▼Table of contents
0:00 Self-introduction
0:11 Management organization
0:24 Organization by function
1:00 Divisional organization
1:26 Matrix organization
2:02 Project organization
2:22 Management position titles
3:49 This is what will come up in the exam! (Summary)
4:10 Fall 2016 Question 25 Past questions

▼Contents
In this video, we will explain about "management organizations".
Of the four major management resources, people, things, money, and information, a management organization is a collection of people.

First, let's look at the different types of management organizations.

Functional organization
A functional organization is an organization in which departments are divided by function.

You probably haven't heard the word "function" very often.

A function is the ability required to perform a job.

For example, you need sales skills to sell things, and accounting skills to calculate money. Such abilities are called functions.

In a functional organization, departments are divided by function, and employees only perform the roles of the department to which they are assigned.

Divisional organization
A divisional organization is an organization in which each business division has departments by function.
A "business division" is a unit that divides a business by "type of product" or "sales region."

An example of a divisional organization is a company that has two business divisions: a domestic business division and an overseas business division.
Each business division has a general affairs department, sales department, etc. under it.

Matrix organization
A matrix organization is an organization in which employees belong to multiple departments, such as functional departments and business departments.
A characteristic of a matrix organization is that one employee belongs to more than one department, so there are colleagues in each department.
There are also more than one boss who gives instructions.
The advantage of a matrix organization is that it is easy to cooperate with other departments and share work know-how. On the other hand, the disadvantage is that having multiple bosses can cause confusion in the chain of command.

Project organization
A project organization is a temporary organization created by gathering experts from each department to achieve a certain purpose.
The characteristic of a project organization is that it is temporary.
Once the purpose is achieved, the project organization is dissolved.

Job titles of management
The management organization that we have explained so far is made up of many departments. The people who bring these departments together are the company's management.
The job titles of these management members are often asked in exams.
In Japanese companies, there are job titles such as "representative director," but the exam will ask about American-style job titles.
American-style job titles, like "CEO," start with C and end with O.
C stands for Chief and means "highest," and O stands for Officer and means "officer."
In other words, the letters in between tell you what the person is responsible for.

CEO is Chief Executive Officer. He has ultimate responsibility for all operations.
CIO is Chief Information Officer. He is the executive responsible for information, and mainly oversees information systems.
CTO is Chief Technology Officer. He is responsible for the technology department, including manufacturing and research and development.
CFO is Chief Financial Officer. He is the executive responsible for the company's finances.

This is what will come up in the exam!
In this field, "organizational structure" and "job titles" are frequently asked questions.
The key to organizational structure is to be able to visualize the diagram.
For job titles, if you can change English abbreviations to their full names, you will be much closer to the correct answer.

Past Questions
Which corporate organizational structure is represented by the diagram?

A. Divisional organization
B. In-house venture organization
C. Functional organization
D. Matrix organization

In the divisional organization (A), each business division has a department for each function.
Each business division has specialized departments such as development, manufacturing, and sales.

In-house venture organization (B), an internal organization that is operated as if it were an independent company when starting a new business.

In the functional organization (C), business operations are divided into specialized functions and organized into departments. The diagram in the question is not divided into business divisions. In addition...