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BUSI 321 GOLDEN CHAPTER 9 ORGANIZATION STRUCTURE o Framework that defines the boundaries of the formal organization and within which the organization operates. o Organization Chart

BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

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Page 1: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

ORGANIZATION STRUCTURE

o Framework that defines the boundaries of the formal organization and within which the organization operates.oOrganization Chart

Page 2: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

FACTORS AFFECTING STRUCTURE

o Strategyo Sizeo Environment

oMechanisticoOrganic

o Technology

Page 3: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

OUTSOURCING

o Subcontracting certain work functions (information systems) to an outside entity.oBenefitsoDrawbacks

Page 4: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

CONTINGENCY APPROACH TO STRUCTURE

o The most appropriate structure depends on the technology used, the rate of environmental change, and other dynamic forces.

Page 5: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

DEPARTMENTATION

oGrouping jobs into related work units.oFunctionaloProductoGeographicoCustomeroHybrid

Page 6: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

LINE AND STAFF

o Line Structure: Direct vertical lines between the different levels.

o Line and Staff Structure: Staff specialists are added to the Line organization.oStaff functionso Line functions

Page 7: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

MATRIX STRUCTURE

oHybrid structure in which individuals from different functional areas are assigned to work on a specific project or task.oAdvantagesoDisadvantages

Page 8: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

HORIZONTAL STRUCTUREo Two group arrangement, with one group

of senior management and the other group composed of empowered employees.

o Characteristics1. Three to five core processes2. Flat hierarchy3. Team management and accountability4. Customers drive performance5. Rewards6. Maximized customer contact.7. Informed and trained employees

Page 9: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

VIRTUAL ORGANIZATION

o Temporary network of independent companies/entities.oShare skills, costs, and access to

one another’s markets.oUsually formed for a specific

opportunity, then disbanded.oTechnology plays a central role.

Page 10: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

FLAT VERSUS TALL

o Flat Structure: Few levels with relatively large (wide) spans of management in each level.

o Tall Structure: Many levels with small (narrow) spans of management.

Page 11: BUSI 321GOLDENCHAPTER 9 ORGANIZATION STRUCTURE oFramework that defines the boundaries of the formal organization and within which the organization operates

BUSI 321 GOLDEN CHAPTER 9

COMMITTEES

oStandingoAd HocoBoard of Directors!