Chapter 11 - Chapter11 OrganizationalStructures andProcesses

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  © 2004 by Nelson, a division of Thomson Canada Limited 1 Chapter 11 Organizational Structures  and Processes
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  © 2004 by Nelson, a division of Thomson Canada Limited 2 What Would You Do? Exide Technologies is currently  organized geographically Share prices are decreasing Debt load is increasing Which organizational structure should  Exide have?
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  © 2004 by Nelson, a division of Thomson Canada Limited 3 Learning Objectives: Designing Organizational Structures After reading these next three sections,  you’ll have a better understanding of the  importance of organizational structure  because you should be able to: 1. describe the departmentalization approach to  organizational structure 2. explain organizational authority 3. discuss the different methods for job design
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  © 2004 by Nelson, a division of Thomson Canada Limited 4 Departmentalization Functional Product Customer Geographic Matrix
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  © 2004 by Nelson, a division of Thomson Canada Limited 5 Functional  Departmentalization Exhibit 11.1
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  © 2004 by Nelson, a division of Thomson Canada Limited 6 Functional  Departmentalization Advantages creates highly skilled  specialists lowers costs through  reduced duplication communication and  coordination  problems are  lessened Disadvantages cross-department  coordination can be  difficult may lead to slower  decision making produces managers  with narrow  experiences
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  © 2004 by Nelson, a division of Thomson Canada Limited 7 Product Departmentalization Easy Food Market Cheese Milk Ice cream
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  © 2004 by Nelson, a division of Thomson Canada Limited 8 Product Departmentalization Advantages managers specialize  but have broader  experience easier to assess  work-unit  performance decision making is  faster Disadvantages duplication often  increases costs difficult to coordinate  across departments
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  © 2004 by Nelson, a division of Thomson Canada Limited 9 Customer  Departmentalization American Express Cards Travel Financial Services Business Services Adapted from Exhibit 11.3
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  © 2004 by Nelson, a division of Thomson Canada Limited 10 Customer  Departmentalization Advantages focuses on customer  needs products and 
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This note was uploaded on 01/08/2010 for the course MGMT 2300 taught by Professor Thompson during the Spring '09 term at Nipissing.

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Chapter 11 - Chapter11 OrganizationalStructures andProcesses

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