10 - PART FOUR C H A P T E R T E N Organizational Structure...

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PART FOUR C H A P T E R T E N Organizational  Structure  and Design 10 Chapter Outline Introduction Defining Organizational Structure Work Specialization Departmentalization Chain of Command Span of Control Centralization and Decentralization Formalization Organizational Design Decisions Mechanistic and Organic Organizations Contingency Factors Strategy and Structure Size and Structure Technology and Structure Environmental Uncertainty and  Structure Common Organizational Designs Traditional Organizational Designs Simple Structure Functional Structure Divisional Structure Contemporary Organizational Designs Team Structures Matrix and Project Structures The Boundaryless Organization The Learning Organization O rganizations are experimenting with different approaches to organizational structure and design. For instance, in the chapter-opening Manager’s Dilemma, Svenska Handelsbanken, Sweden’s premier bank has a network of 540 branch offices across the Nordic region. The branches are autonomous. Lars Gronstedt, President and Group Chief Executive, attributes the decentralized structure with 30 years of growing market share and an above average return on equity. The next challenge for Gronstedt is to have the Handelsbanken to become a learning organization. What can he do to make this happen? 121
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Many PowerPoint Slides, including both original text art and newly created images, have been developed and are available for you to coordinate with Chapter 10 materials presentation. ANNOTATED OUTLINE 1. INTRODUCTION. Organizational structure can play an important role in an organization’s success. The process of organizing—the second management function—is how an organization’s structure is created. 2. DEFINING ORGANIZATIONAL STRUCTURE. Managers are seeking structural designs that will best support and allow employees to effectively and efficiently do their work. A. Before we look at the elements of organizational structure and design, we need to define some important terms. 1. Organizing is the process of creating an organization’s structure. That process has several purposes, as shown in Exhibit 10.1. 10.1 If I’m a lower-level manager, what kinds of organizing will I be doing? 2. An organizational structure is the formal arrangement of jobs within an organization. 3. Organizational design is the process of developing or changing an organization’s structure. It involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. We need to take a closer look at each of these structural elements. B.
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10 - PART FOUR C H A P T E R T E N Organizational Structure...

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