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Falltest2end - Organizational Design The Specialization Coordination Dilemma After designing job how can these be effectively organized into work

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Organizational Design The Specialization Coordination Dilemma After designing job –how can these be effectively organized into work units More you specialize more difficult it is to coordinate (Can coordinate across boundaries) Identify critical interdependencies and draw boundaries around them Problems with coordination or lack of specialization?? Organization Design Strategy 1. Primitive Structure-Agency-Form a) One boss and few employees (who act as agents or extensions of the boss) b) All employees report directly to the boss c) Flexible but breaks down with complexity (boss has limited info-processing capacity) 2. Functional Design a) Groups activities into separate units/departments (Each takes a distinctive function) Example: Fortune 500 companies (back in the day) or Domino’s parent company b) Advantages Lots of specialization within specialized departments Efficient use of resources (don’t duplicate and greater focus on specialization) Simple communication network Simplifies training of functional specialists Gives status to major functional areas Preserves strategic control at top management Provides career path for specialists (reinforce and enhance expertise) c) Disadvantages – Lack of coordination Coordination takes longer (many departments – harder to coordinate) No concern for organization’s mission (specialty not overall tasks) Interdepartmental coordination Cost of coordination Employees identify with specialty Broadly trained managers are limited (all functional) Client satisfaction is lower Slow to respond to change in environment Slow to innovate d) When do you use it? – up to date technically within a specialty d.i)Stable environment d.ii) Few/one product lines d.iii) Goals are efficiency and quality d.iv) Small/medium organization Decisions made at the CEO. Coordinations by VPs – under CEO – most centralized Slowest to go all the way to CEO for decision.
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3. Product Design a) 3M – 40 product divisions (most Fortune 500 companies today) b) Each major product line is through a separate and semi-autonomous division c) Responsive to the environment and efficient coordination d) Can set up profit centers e) Better to accommodate growth f) ADVANTAGES Profit centers (pinpoint problems quicker and task completion responsibility is easy to
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This note was uploaded on 10/07/2011 for the course MGT 3200 taught by Professor Sauley during the Fall '06 term at LSU.

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Falltest2end - Organizational Design The Specialization Coordination Dilemma After designing job how can these be effectively organized into work

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