© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

 All organizations wrestle with structural design and reorganization The deployment of organizational resources to achieve strategic goals  Division of labor  Lines of authority  Coordination  Organizing is important because it follows from strategy 2

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizing structure defines:  The set of formal tasks assigned to individuals and departments  Formal reporting relationships  The design of the systems to ensure effective coordination 3

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

5  Work Specialization is the degree to which organizational tasks are subdivided into individual jobs; also called division of labor  Chain of Command is an unbroken line of authority that links all individuals in the organization and specifies who reports to whom

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Authority is vested in organizational positions, not people  Authority flows down the vertical hierarchy  Authority is accepted by subordinates 6

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responsibility is the duty to perform the task or activity as assigned  Accountability is the mechanism through which authority and responsibility are aligned  Delegation is the process managers use to transfer authority and responsibility down the chain 7

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Line departments perform primary business tasks  Sales  Production 8

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Staff departments support line departments  Marketing  Labor relations  Research  Accounting  Human Resources 9

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Line authority means that people in management positions have formal authority to direct and control immediate subordinates  Staff authority is narrower and includes the right to advise, recommend, counsel in the staff specialists’ area of expertise 10

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  The number of employees reporting to a supervisor  Less supervision/larger spans of control  Work is stable and routine  Subordinates perform similar work  Subordinates are in one location  Highly trained/require little direction  Rules and procedures are defined  Few planning or nonsupervisory activities  Manager’s preference 11

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  Tall structure have more levels and narrow span  Flat structure have a wide span and fewer levels

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Centralization – decision authority is located near the top of the organization  Decentralization – decision authority is pushed downward to all levels  Factors that influence centralization versus decentralization:  Change and uncertainty are usually associated with decentralization  Strategic fit  Crisis requires centralization 14

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Basis for grouping positions into departments and departments into the total organization  Vertical functional approach  Grouping of positions into departments based on skills, expertise, work activities, and resource use 15

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Divisional approach  Grouping based on organizational output  Product, program, business Geographic or Customer-based divisions group activities by geography or customer 21

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Matrix approach combines functional and divisional approaches  Improve coordination and information  Dual lines of authority  Team approach is a very widespread trend  Allows managers to delegate authority  Flexible, responsive 24

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Extends idea of horizontal coordination and collaboration  Could be a loose interconnected group  i.e., outsourcing Virtual network structure means that the firm subcontracts most of its major functions to separate companies 27

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Companies need more flexibility than vertical structure can offer  Meet fast-shifting environment  Break down barriers between departments  Need integration and coordination  Lack of coordination and cooperation can cause information problems  Growing global challenge 30

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32  Radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33 –  Project Manager – person responsible for coordinating activities of several departments for the completion of a specific project Task Force – a temporary team or committee formed to solve a specific short-term problem involving several departments Cross-functional Team – furthers horizontal coordination by including members across the organization

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Frequent, timely, problem-solving communication carried out through [employee] relationships of shared goals, shared knowledge, and mutual respect. 35

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36  Business performance is influenced by structure  Strategic goals should drive structure  Structure should facilitate strategic goals  Business performance is influenced by structure  Strategic goals should drive structure  Structure should facilitate strategic goals

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Knowledge, tools, techniques, and activities should match production activities  Manufacturing firms can be categorized according to:  Small-batch and unit production  Large-batch and mass production  Continuous process production  The technical complexity of each type of firm differs 39