Goals that are established by top management and relate to where the

Goals that are established by top management and

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Goals that are established by top management and relate to where the organization wants to be in the future are ______. a. operational objectives b. budgets c. standing goals d. strategic goals 5. All of the following are significant major barriers to effective plan- ning except a(n) ______. a. lack of commitment to the planning process b. overreliance on the planning department c. overemphasis on the uncontrollable environmental factors d. lack of focus on the long term Answers: 1. a 2. c 3. b 4. d 5. c
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Chapter 6 CREATING ORGANIZATIONAL STRUCTURE Chapter Check-In Figuring out how planning and organizing coincide Understanding the different forms of organizational structures Noting the differences between formal and informal organizational structures T he second function of management is organizing. After a manager has a plan in place, she can structure her teams and resources. This impor- tant step can profoundly affect an organization’s success. Not only does a business’s organizational structure help determine how well its employees make decisions, but it also reflects how well they respond to problems. These responses, over time, can make or break an organiza- tion. In addition, the organizational structure influences employees’ atti- tudes toward their work. A suitable organizational structure can minimize a business’s costs, as well as maximize its efficiency, which increases its abil- ity to compete in a global economy. For these reasons, many businesses have tinkered with their organizational structures in recent years in efforts to enhance their profits and competitive edge. In this chapter, organizational structures are examined in detail. Topics include the development of organizational structures, including how tasks and responsibilities are organized through specialization and departmen- talization. In addition, some of the forms organizational structures may take are also explored. Finally, the differences between formal and infor- mal organizational structures are addressed.
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58 CliffsQuickReview Principles of Management The Relationship between Planning and Organizing Once managers have their plans in place, they need to organize the nec- essary resources to accomplish their goals. Organizing, the second of the universal management functions, is the process of establishing the orderly use of resources by assigning and coordinating tasks. The organizing pro- cess transforms plans into reality through the purposeful deployment of people and resources within a decision-making framework known as the organizational structure. The organizational structure is defined as The set of formal tasks assigned to individuals and departments The formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managerial control The design of systems to ensure effective coordination of employees across departments The organizational structure provides a framework for the hierarchy, or vertical structure, of the organization. An
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