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Chapter 13 - Organizational Structure.docx

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COMM 292
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Chp 13 Organizational StructureWhat Is Organizational StructureOrganizational StructureHow job tasks are formally divided grouped and coordinated Pyramidal Structure vs Flat Structure RestructuringChanging structures from time to time often involving layoffs Six Key Elements of Designing Organizational Structure 1 Work SpecializationThe degree to which tasks in the organization are subdivided into separate jobs o Individuals specialize in doing part of an activity rather than entire activity o Specialization can be efficient as skills improve through repetition o Less costly to find and train workers for specific tasks o Specialization can lead to boredom low productivity poor quality higher turnover etc o Induces higher productivity at the price of lower job satisfaction 2 DepartmentalizationThe basis on which jobs are grouped together o Functional Departmentalization Efficiencies from putting people with common skills and orientations together in common units o Product Departmentalization Increased accountability for product performance o Geographic Departmentalization Valuable if organizations customers are scattered everywhere and have similar needs based on location o Process Departmentalization Specialization in one specific phase of production offering homogeneous categorizing of activities o Customer Departmentalization Specialization on the basis that customers of each department have a common set of problems and needsTwo trends of departmentalization 1 Greater emphasis on customer departmentalization 2 Rigid functional departmentalization increasingly complemented by teams that cross over traditional departmental linesChain of CommandThe continuous line of authority that extends from upper organizational levels to the lowest level and clarifies who reports to whom o DelegationAssignment of authority to another person to carry out specific duties allowing the employee to make some of the decisionsManagers ensure right people are taking part in decision making while employees are being empowered o Selfmanaged and crossfunctional teams have decreased relevance of chain of command
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