MHR301_Ch10 - Chapter 10 Managing Organizational Structure...

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Chapter 10 Managing Organizational Structure Leanne Powers MHR301 From McGraw-Hill Irwin Contemporary Management
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Designing Organizational Structure Organizing The process by which managers establish  working relationships among employees to  achieve goals. Organizational Structure Formal system of task and reporting  relationships showing how workers use  resources. Organizational design The process by which managers make specific  choices that result in a particular kind of  organizational structure.
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The Organizational Environment The Organizational Environment The faster the environment changes, the  more problems face managers. Structure must be more flexible (i.e.,  decentralized authority) when  environmental change is rapid.
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Formal or Flexible? More flexible structure More formal structure Rapidly-changing environment Stable environment More complex (or non-routine)  technology Less-complex technology used  in task environment Higher task variety Higher task analyzability Small batch or continuous- process production Mass-production More highly-skilled workforce More entry-level or semiskilled  workforce Strategic necessity  (differentiation strategy) Strategic necessity (low-cost  strategy) More vertical integration or  global expansion Less vertical integration; fewer  global operations
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Job Design Job Design The process by which managers decide  how to divide tasks into specific jobs. The appropriate division of labor results 
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This note was uploaded on 05/18/2008 for the course MHR 301 taught by Professor Sharif-zadeh during the Fall '07 term at Cal Poly Pomona.

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MHR301_Ch10 - Chapter 10 Managing Organizational Structure...

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