Organizing the Business Enterprise Chapter 6 Organizing the Business Enterprise PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved.

“Anyone can do any amount of work provided it isn't the work he's supposed to be doing at the moment.” —Robert Benchley Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Key Topics Organizational structure Specialization and departmentalization Responsibility, authority, delegation, and accountability Functional, divisional, matrix, and international organizational structures The informal organization and intrapreneuring Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Organizational Structure Specification of the jobs to be done within an organization and how those jobs relate to one another Copyright © 2005 Prentice Hall, Inc. All rights reserved.

What Elements Influence Organizational Structure? Purpose Mission Organizational structure is usually quite fluid! Strategy Size Technology External Environment Copyright © 2005 Prentice Hall, Inc. All rights reserved.

The Building Blocks of Organizational Structure SPECIALIZATION: What needs to be done, and who will do it? DEPARTMENTALIZATION Customer Geographic Product Functional Process Copyright © 2005 Prentice Hall, Inc. All rights reserved.

The Decision-Making Hierarchy Assigning Tasks Performing Tasks Distributing Authority Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Centralized and Decentralized Organizations Top managers hold most decision-making authority Decentralized Lower level managers hold significant decision-making authority Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Organizational Structure and Span of Control Relatively narrow span of control Relatively wide span of control Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Forms of Authority Line Authority Staff Authority Line Departments Staff Authority Staff Members Committee and Team Authority Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Basic Forms of Organizational Structure Functional Organization Divisional Organization International Organization Matrix Organization Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Organizational Design in the 21st Century Boundaryless Organizations Team Organizations Virtual Organizations Learning Organizations Copyright © 2005 Prentice Hall, Inc. All rights reserved.

The Informal Organization: A Powerful Dynamic Informal Groups The Grapevine Intrapreneuring Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Chapter Review Discuss the elements that influence organizational structure. Explain specialization and departmentalization. Distinguish among responsibility, authority, delegation, and accountability. Explain decision-making in centralized vs. decentralized organizations. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Chapter Review (cont’d) Distinguish among functional, divisional, matrix, and international organizational structures. Describe the informal organization and intrapreneuring. Copyright © 2005 Prentice Hall, Inc. All rights reserved.