Organizational Structure - Chapter 13

Organizational Structure - Chapter 13 - ORGANIZATION...

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Chapter 13 ORGANIZATION STRUCTURE
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“Management Talk” “Our company today is leaner, faster, more flexible and more efficient – in short much more competitive. But our journey is far from finished. Building upon our recent success and momentum, we are determined to drive GM to the next level – to sustained success.” Rick Wagoner, General Motors, Chairman and CEO
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Objectives Read an organizational chart List the four types of organizational structures and explain the advantages and disadvantages of each type Name the factors that affect the type of structure an organization adopts Describe the roles of the chief executive officer and the board of directors
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Understanding Management General Motors has a long, proud history of being one of the biggest car manufacturers in the world. By the 1980s and 1990s, however, the company was losing profits to newer, more efficient manufacturers. Since then, the company has updated its factories and streamlined its operations in order to reduce costs.
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Management Skills How would consolidating six divisions help General Motors improve serviced and cut costs? What are the possible drawbacks of merging the separate divisions? Have you ever been in a situation at home or work where there were too many people in charge of completing a task? What suggestions would you make to simplify the process?
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Sec. 13.1: Understanding how organizational structures work Can you describe a graphic organizer you have used in school or the classroom? What are the benefits of using them? Why is it important for businesses to have organization charts?
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What You’ll Learn How to read an organizational chart The four main types of organizational structures The difference between staff and line functions The benefits of adopting a matrix or team structure
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Why is this important? “Without an appropriate organizational structure, a business will not succeed”
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What is an Organization Structure ? A way to organize employees into some kind of structure to meet goals Minimizes confusion Coordinates activities by clearly identifying which individuals are responsible for which tasks
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Types of Organizational Structures? 1. Line Structure 2. Line and Staff Structure 3. Matrix Structure 4. Team Structure Organizational Chart : A visual representation of a business’s organizational structure
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Line Structure Authority originates at the top and moves downward Common among small companies Line Functions Functions that contribute directly to company profits Production managers, sales reps, and marketing managers CFO Senior Managers Mid-level Managers Lower-level Managers Non-management Employees
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Line Structure Line Managers Collect and analyze all information needed to carry out their responsibilities Example: Production Managers Hire and fire all of the assembly-line workers in their departments Order all supplies for their department CFO Senior Managers Mid-level Managers Lower-level Managers Non-management Employees
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This note was uploaded on 01/13/2012 for the course BUS M 201 taught by Professor Mcgregor during the Fall '11 term at BYU.

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Organizational Structure - Chapter 13 - ORGANIZATION...

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