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Organizational Structure and Design Chapter 10

L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. <ul><li>Defining Organiza...

L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. <ul><li>Organiz...

L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. <ul><li>Common ...

Defining Organizational Structure <ul><li>Organizational Structure </li></ul><ul><ul><li>The formal arrangement of jobs wi...

Exhibit 10–1 Purposes of Organizing <ul><li>Divides work to be done into specific jobs and departments. </li></ul><ul><li>...

Organizational Structure <ul><li>Work Specialization </li></ul><ul><ul><li>The degree to which tasks in the organization a...

Departmentalization by Type <ul><li>Functional </li></ul><ul><ul><li>Grouping jobs by functions performed </li></ul></ul>...

Exhibit 10–2 Functional Departmentalization <ul><li>Advantages </li></ul><ul><ul><li>Efficiencies from putting together si...

Exhibit 10–2 (cont’d) Geographical Departmentalization <ul><li>Advantages </li></ul><ul><ul><li>More effective and efficie...

Exhibit 10–2 (cont’d) Product Departmentalization + Allows specialization in particular products and services + Managers c...

Exhibit 10–2 (cont’d) Process Departmentalization + More efficient flow of work activities – Can only be used with certain...

Exhibit 10–2 (cont’d) Customer Departmentalization + Customers’ needs and problems can be met by specialists - Duplication...

Organization Structure (cont’d) <ul><li>Chain of Command </li></ul><ul><ul><li>The continuous line of authority that exten...

Organization Structure (cont’d) <ul><li>Authority </li></ul><ul><ul><li>The rights inherent in a managerial position to te...

Organization Structure (cont’d) <ul><li>Span of Control </li></ul><ul><ul><li>The number of employees who can be effective...

Exhibit 10–3 Contrasting Spans of Control

Organization Structure (cont’d) <ul><li>Centralization </li></ul><ul><ul><li>The degree to which decision-making is concen...

Exhibit 10–4 Factors that Influence the Amount of Centralization <ul><li>More Centralization </li></ul><ul><ul><li>Environ...

Exhibit 10–4 (cont’d) Factors that Influence the Amount of Centralization <ul><li>More Decentralization </li></ul><ul><ul>...

Organization Structure (cont’d) <ul><li>Formalization </li></ul><ul><ul><li>The degree to which jobs within the organizati...

Organizational Design Decisions <ul><li>Mechanistic Organization </li></ul><ul><ul><li>A rigid and tightly controlled stru...

Exhibit 10–5 Mechanistic versus Organic Organization • High specialization • Rigid departmentalization • Clear chain of...

Contingency Factors <ul><li>Structural decisions are influenced by: </li></ul><ul><ul><li>Overall strategy of the organiza...

Contingency Factors (cont’d) <ul><li>Strategy Frameworks: </li></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><ul><li>...

Contingency Factors (cont’d) <ul><li>Strategy and Structure </li></ul><ul><ul><li>Achievement of strategic goals is facili...

Contingency Factors (cont’d) <ul><li>Technology and Structure </li></ul><ul><ul><li>Organizations adapt their structures t...

Exhibit 10–6 Woodward’s Findings on Technology, Structure, and Effectiveness

Contingency Factors (cont’d) <ul><li>Environmental Uncertainty and Structure </li></ul><ul><ul><li>Mechanistic organizatio...

Common Organizational Designs <ul><li>Traditional Designs </li></ul><ul><ul><li>Simple structure </li></ul></ul><ul><ul><u...

Exhibit 10–7 Strengths and Weaknesses of Traditional Organizational Designs

Exhibit 10–8 Contemporary Organizational Designs Complexity of assigning people to projects. Task and personality conflict...

Exhibit 10–8 (cont’d) Contemporary Organizational Designs Lack of control. Communication difficulties.. • Disadvantages: ...

Organizational Designs (cont’d) <ul><li>Contemporary Organizational Designs </li></ul><ul><ul><li>Team structures </li></u...

Exhibit 10–9 An Example of a Matrix Organization

Organizational Designs (cont’d) <ul><li>Contemporary Organizational Designs (cont’d) </li></ul><ul><ul><li>Boundaryless Or...

Removing External Boundaries <ul><li>Virtual Organization </li></ul><ul><ul><li>An organization that consists of a small c...

Today’s Organizational Design Challenges <ul><li>Keeping Employees Connected </li></ul><ul><ul><li>Widely dispersed and mo...

Organizational Designs (cont’d) <ul><li>The Learning Organization </li></ul><ul><ul><li>An organization that has developed...

Terms to Know <ul><li>organizing </li></ul><ul><li>organizational structure </li></ul><ul><li>organizational design </li><...

Terms to Know <ul><li>divisional structure </li></ul><ul><li>team structure </li></ul><ul><li>matrix structure </li></ul><...

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