MGT 340 Exam 3 Study Guide

MGT 340 Exam 3 Study Guide - CHAPTER 10: Organizational...

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CHAPTER 10: Organizational Structure and Design I. Five Types of departmentalization a. Functional—name matches function (finance, HR, production, etc.) i. Advantage: in-depth specialization, coordination within functional area ii. Disadvantage: poor communication across functional areas, limited view of org. goals b. Product—group jobs by product line (Chevrolet, Pontiac, Cadillac, etc.) i. Advantage: allows specialization, closer to customers ii. Dis: duplication of functions, limited view of org. goals c. Geographical—group jobs by territory (Levi’s northwest, northeast, southwest, etc.) i. Advantage: Effective/efficient handling specific regional issues, serve needs of unique markets better ii. Dis: duplication of functions, can feel isolated from other organizational areas d. Process—group jobs on product or customer flow (Exxon-Mobil, A-B) i. More efficient flow of work activities ii. Dis: Can only be used with certain types of products e. Region OR Customer—by customers needs II. Define and Explain a. Chain of Command—who reports to who, from top to bottom of organization i. Authority—delegated by organization (permission to act) ii. Responsibility—obligation (expectations) b. Span of Control—how many subordinates can you watch (degree of supervision) i. Move to team activity diminishes need for span of control
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MGT 340 Exam 3 Study Guide - CHAPTER 10: Organizational...

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