OBnotes2 - Elements of Structure-work specialization-chain...

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Elements of Structure: -work specialization -chain of command -span of control -centralization/decentralization -formalization -departmentation Organization Designs: •Simple Structure •Virtual •Matrix •Bureaucracy •Boundaryless/Horizontal Simple Structure: •Authority centralized in owner •Informal-> lack of structure •Benefits -Inexpensive -Flexible •Costs -Inefficient -Dependent on Owner Bureaucracy : •Functional departments •Standardized tasks •High formalization and centralization •Benefits -efficiency -low labor costs •Costs -coordination problems -rule bound Matrix Structure: •Functional & product departmentation • Two bosses •Benefits -coordination across multiple products/projects -efficient allocation of specialists/professionals •Costs -confusion & power struggles -leadership skills -stress
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Virtual Organization: •Small centralized core •Outsource major business functions •Benefits -Gain scale without mass -Flexible and adaptive -Quickly access new markets •Costs
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