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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.oOrganization Chart
BUSI 321 GOLDEN CHAPTER 9
FACTORS AFFECTING STRUCTURE
o Strategyo Sizeo Environment
oMechanisticoOrganic
o Technology
BUSI 321 GOLDEN CHAPTER 9
OUTSOURCING
o Subcontracting certain work functions (information systems) to an outside entity.oBenefitsoDrawbacks
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.
BUSI 321 GOLDEN CHAPTER 9
DEPARTMENTATION
oGrouping jobs into related work units.oFunctionaloProductoGeographicoCustomeroHybrid
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
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
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
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.
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.
BUSI 321 GOLDEN CHAPTER 9
COMMITTEES
oStandingoAd HocoBoard of Directors!