Ch16 - Ch. 16: Foundations of Organization Structure OS:...

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Ch. 16: Foundations of Organization Structure o OS: defines how job tasks are formally divided, grouped, and coordinated. o Work specialization: o Point at which the human diseconomies from specialization (boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high turnover) more than offset the economic advantages o Solution: enlarge scope of job activities o Departmentalization: after specialization of jobs, grouping together ob jobs so common tasks can be coordinated o Functions: major advantage is obtaining efficiencies from putting like specialists together o Functional departmentalization seeks to achieve economies of scale by placing people with common skills and orientations into common units o Product: each major product is placed under the authority of an executive who has complete global responsibility for that product increased accountability for product performance o Geography: best used when customers are scattered and have similar needs based on their locations o Process departmentalization: used for processing customers as well as products (DMV) o Customer: ex is Microsoft. Assumes customers in each department
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Ch16 - Ch. 16: Foundations of Organization Structure OS:...

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