MGT 300 Spring 2010 Week 11

MGT 300 Spring 2010 Week 11 - Designing Organizational...

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Designing Organizational Structure (Jones-George Chapter 7) MGT 300 Week 11 April 7
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10 - 2 Designing Organizational Structure Form Follows Function: - Architecture The shape and design of a building needs to match the use for which the building is intended. - Automobiles Vehicles that have different functions (hauling people, cargo, street or off-road racing…) will have different designs - Strategy Organizations that have different intended strategies should have organizational design and structures that are best intended to facilitate those strategies
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7-3 Designing Organizational Structure Four Activities of a Manager 1. Leading 2. Organizing 3. Controlling 4. Planning Organizing: The process by which managers establish the structure of working relationships among employees to achieve goals
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7-4 Designing Organizational Structure Organizational Structure Formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals Organizational design The process by which managers make specific choices that result in a particular kind of organizational structure.
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10 - 5 Traditional Forms of Organizational Structure Organizational structure refers to formalized patterns of interactions that link a firm’s - Tasks - Technologies - People Structure provides a means of balancing two conflicting forces - Need for the division of tasks into meaningful groupings - Need to integrate the groupings for efficiency and effectiveness
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10 - 6 Patterns of Growth of Large Corporations Simple Structure Simple structure is the oldest and most common organizational form - Staff serve as an extension of the top executive’s personality - Highly informal - Coordination of tasks by direct supervision - Decision making is highly centralized - Little specialization of tasks, few rules and regulations, informal evaluation and reward system
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10 - 7 Dominant Growth Patterns of Large Corporations
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7-8 Factors Affecting Organizational Structure Figure 7.1 Contingency Theory: “ No one best way, it depends… ”
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7-9 The Organizational Environment The Organizational Environment The quicker 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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7-10 The Organizational Environment Strategy Different strategies require the use of different structures A differentiation strategy needs a flexible structure, low cost may need a more formal structure Increased vertical integration or diversification also requires a more flexible structure
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7-11 The Organizational Environment Technology The combination of skills, knowledge,
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This note was uploaded on 10/22/2010 for the course MGT 300 taught by Professor Moorhead during the Spring '08 term at ASU.

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MGT 300 Spring 2010 Week 11 - Designing Organizational...

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