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Business Administration
BUS 272
Christopher Zatzick

Chapter 13: Organizational structure Organizational structure: How job tasks are formally divided, grouped, and coordinated Pyramidal structure Flat structure Work specialization/division of labour: the degree to which tasks in the organization are subdivided into separate jobs Departmentalization: the basis on which jobs are grouped together  Functional: ex: accounting, manufacturing, human resource…specialists  Product departmentalization: ex. Royal bank: banking, investment, insurance…  Geographic  Process: ex: casting, press, tubing, finishing, inspecting, packing, shipping  Customer: ex: Dell: home and office, business- small, large, public Chain of command: the continuous line of authority that extends from upper organizational levels to the lowest level and clarifies who reports to whom Delegation: assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions. Span of control: the number of employees that report to a manager. Small number-close control Centralization: the degree to which decision making is concentrated at a single point in the organization Decentralization: the degree to which decision making is distributed to lower-level employees  less centralized have a greater amount of participative decision making Formalization: the degree to which jobs within the organization are standardized highly formalized: there are explicit job descriptions, lots of organizational rules, and clearly defined procedures Mechanistic model: A structure characterized by high specialization, rigid departmentalization, a clear chain of command, narrow spans of control, a limited information network, and centralization Organic model: a structure that is flat, uses cross- funtional and cross-hierarchical teams, possesses a comprehensive information network, has wide spans of control, and has low formalization Traditional organizational design: Simple structure: an organizational design characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization small retail store, start-up electronics firm, family business The bureaucracy: an organizational desi
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