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BA310-2-2 Structure Clicker Master - BA 310 Organizational...

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1 BA 310: Organizational Structure I
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2 Why should we worry about organizational structure? Organization structure answers the question: How do we organize all the people who come to work each day? Jobs (what’s inside each box on the org chart?) Departments (how are the jobs grouped?) Hierarchy (who’s in charge?) Coordination (how do people work together?) Poor structural choices can have enormous costs. For example, priorities are set wrong, communication becomes difficult and slow, coordination and motivation suffers. “Your box on the org chart is your world” It fundamentally shapes your attitudes, perceptions and behaviors Organizational Structure is one of the “big levers”
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3 Roadmap: Structure How does an organization chart work? How does being in a “box” in the chart affect behavior? What are the different ways to organize departments? What are the pros and cons of each? How do you choose the best way? What is a “functional” structure? What are its pros and cons? What is an organizational “silo?” What is bad about them? What is a “divisional” structure? Where should it be used?
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4 Structure: Fundamental Concepts Organizational Structure: The formal framework by which job tasks are divided, grouped, and coordinated. Two pillars: Specialization: Dividing the work up Includes jobs and departmentalization Coordination: Keeping everyone working in sync Includes horizontal & vertical mechanisms
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5 Departmentalization Departmentalization is the basis by which jobs are grouped together. “Boxes” on the organization chart can represent a job holder AND/OR a department Departments are a primary means of specialization (e.g., finance, marketing, so on) Departments are the primary means by which the specialized personnel are coordinated There are often multiple levels of departments Basis of departmentalization can vary: Functional Geography (Region) Product Customer Each type has pros and cons
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6 Organization Chart Jesse Ventura President Steven Gold Manager, Finance Luther X Manager, Legal Stan McHale Manager, Marketing Accounting Clerk Accounting Clerk Paralegal Litigation Specialist Advertising Specialist Sales Rep “Finance Dept”
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7 Functional Departmentalization Pros: High specialization; Strong coordination w/in functions High Efficiency (low duplication) Cons: Inflexible (“One size fits all”) Poor coordination across depts Limited view of organizational goals Jesse Ventura President & CEO Steven Gold VP Finance Luther X VP Legal Stan McHale VP Marketing & Sales Ivory Mgr, Marketing Edge Mgr., Sales Groups similar JOBS together (by functions performed) “Usual Suspects”
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8 What are the implications of being “in a box” in an organization chart.
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