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Chapter 8

Chapter 8 - Organization Structure and Design.docx

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Global Management Studies
GMS 200
Shavin Malhotra

OrganizationStructureandDesignThere are 4 main components in an organizationoPlanning to set the directionoLeading to inspire effortoAnd Organizingto divide up the work arrange resources and coordinate activitiesThe Organization Structure is a system of tasks workflows reporting relationships and communication channels that link together the work of diverse individuals and groupsoAn organization chart is a diagram that shows reporting relationships and the formal arrangement of work positions within an organizationoIt shows the formal structure which is the official structure of the organization By reading an organization chart you can learn the basics of an organizations formal structure includingDivision of workSupervisory relationshipswho reports to whomCommunication channelslines show formal communication flowsMajor subunits Positions reporting to a common manager are shownLevels of management vertical layers of management are shownEvery formal structure also has an informal structure It is made up of the unofficial but often critical working relationships between organizational membersoA tool known as social network analysis identifies the informal structures and their embedded social relationships that are active in an organization It asks questions such as who they turn for help most often who they communicate with regularly and who energize or deenergize themDepartmentalization is the process of grouping people and jobs into units such as formal teams or departments that are linked together in a coordinated wayIn functional structurespeople with similar skills and performing similar tasks are grouped together into formal work units
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