CHAPTER_10_STUDY_NOTES

CHAPTER_10_STUDY_NOTES - Designing Adaptive Organizations...

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Designing Adaptive Organizations Chapter 10 Designing Adaptive Organizations Chapter Outline I. Organizing the Vertical Structure A. Work Specialization B. Chain of Command C. Span of Management D. Centralization and Decentralization II. Departmentalization A. Vertical Functional Approach B. Divisional Approach C. Matrix Approach D. Team Approach E. The Virtual Network Approach F. Advantages and Disadvantages of Each Structure III Organizing for Horizontal Coordination A. The Need for Coordination B. Task Forces, Teams, and Project Management C. Reengineering IV. Factors Shaping Structure A. Structure Follows Strategy B. Structure Reflects the Environment C. Structure Fits the Technology Annotated Learning Objectives After studying this chapter, students should be able to: 1. Discuss the fundamental characteristics of organizing including such concepts as work specialization, chain of command, span of management, centralization versus decentralization. Organizing is important because it follows the management function of planning. Planning and strategy define what to do; organizing defines how to do it. Organization structure is a tool that managers use to harness resources for getting things accomplished. Organizing is the deployment of organizational resources to 255
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Designing Adaptive Organizations achieve strategic goals. The deployment of resources is reflected in the organization's division of labor into specific departments and jobs, formal lines of authority, and mechanisms for coordinating diverse organization tasks. Work specialization, sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs. The chain of command is an unbroken line of authority that links all persons in an organization and shows who reports to whom. The span of management is the number of employees reporting to a supervisor. Sometimes called the span of control, this characteristic of structure determines how closely a supervisor can monitor subordinates. The average span of control used in an organization determines whether the structure is tall or flat. A tall structure has an overall narrow span and more hierarchical levels. A flat structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels. Centralization and decentralization pertain to the hierarchical level at which decisions are made. Centralization means that decision authority is located near the top of the organization. With decentralization, decision authority is pushed downward to lower organization levels. Span of management, or span of control, is the number of employees reporting to a supervisor. This characteristic of structure determines how closely a supervisor can monitor subordinates. Generally, when supervisors must be closely involved with subordinates, the span should be small, and when supervisors need little involvement with subordinates, it can be large. Formalization is the written documentation used
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This note was uploaded on 09/08/2011 for the course MGMT 405 taught by Professor R purser during the Spring '08 term at S.F. State.

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CHAPTER_10_STUDY_NOTES - Designing Adaptive Organizations...

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