12-Chapter 15_Organizational Structure (1).pptx

12-Chapter 15_Organizational Structure (1).pptx -...

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Foundations of Organization Structure Chapter 15
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What is an organization’s structure? An organization’s structure defines how job tasks are formally divided, grouped and coordinated. Organizational charts provide a simplified , visual representation of an org’s structure, depicting units & lines of authority. Organizational design is the process of assessing an org’s strategy & environment to determine the appropriate structure.
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Why is organizational structure important? Startups typically begin with flat & flexible organizations, but maintaining this structure is not easy with time and growth. Managers must balance competing demands for flexibility and control while providing overall direction. Structural decisions are fundamental to sustaining organizational growth. Decisions about structure are influenced by: Strategy: what do we want to accomplish? Environment: how much & how often are we forced to deal with change?
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Learning Objectives 1. Identify seven elements of an organization’s structure . 2. Identify the characteristics of common & alternative structures . 3. Describe the effects of downsizing on organizational structures & employees. 4. Contrast the reasons for mechanistic and organic structural models. 5. Analyze the behavioral implications of different organizational designs.
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7 Elements of an Organization’s Structure 1. Specialization 2. Departmentalization 3. Chain of command 4. Span of control 5. Centralization 6. Formalization 7. Boundary spanning
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Specialization The division of labor into separate activities The advantages of work specialization are: Making efficient use of employee’s skills Improving skills through training & repetition Less time is spent changing tasks There are potential drawbacks to specialization when carried too far: Boredom, fatigue, & stress Low productivity & poor quality Increased absenteeism & high turnover
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Departmentalization Grouping jobs together so common tasks can be coordinated The basis of grouping can be: function, type of product/service, geography, process differences, or type of customer The advantages of departmentalization are: Efficiencies gained by grouping specialists Increased accountability for performance More (better) localized service The major drawback of departmentalization is: Silos form based on groupings that prevent efficient problem solving and innovation
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Chain of Command An unbroken line of authority; clarifies who reports to whom.
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  • Fall '14
  • narrow spans, boundary spanning, leaner organization

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