Chapter06

Chapter06 - Chapt er 6 Or ganizat ional Design D ivision of...

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Chapter 6 Organizational Design
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Division of Labor: Specialization Benefits of Specialization Workers can become proficient at a task Transfer time between tasks is decreased Specialized equipment can be more easily developed Employee replacement becomes easier Limitations of Specialization Employee boredom and dissatisfaction with mundane tasks Anticipated benefits of specialization do not always occur
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Departmentalization Departmentalization The process of grouping jobs according to some logical arrangement Rationale for Departmentalization Organizational growth exceeds the owner- manager’s capacity to personally supervise all of the organization Additional managers are employed and assigned specific employees to supervise
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Functional Departmentalization Advantages Each department can be staffed by functional-area experts Supervision is facilitated in that managers only need be familiar with a narrow set of skills Coordination inside each department is easier Disadvantages Decision making becomes slow and bureaucratic Employees narrow their focus to the department and lose sight of organizational goals/ issues Accountability and performance are difficult to monitor (which dept?) The grouping of jobs involving the same or similar activities (Ex: Finance or Marketing)
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Product Departmentalization Advantages All activities associated with one product can be integrated and coordinated Speed and effectiveness of decision making are enhanced. Performance of individual
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This note was uploaded on 05/26/2011 for the course MGMT 3000 taught by Professor Roberthirschfeld during the Spring '08 term at UGA.

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Chapter06 - Chapt er 6 Or ganizat ional Design D ivision of...

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