1. Organizing the Business Enterprise
Chapter 6
Organizing the Business Enterprise
PowerPoint Presentation by Charlie Cook
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2. “Anyone can do any amount of work provided it isn't the work he's supposed to be doing at the moment.” —Robert Benchley
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3. Key Topics Organizational structure
Specialization and departmentalization
Responsibility, authority, delegation, and accountability
Functional, divisional, matrix, and international organizational structures
The informal organization and intrapreneuring
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4. Organizational Structure
Specification of the jobs to be done within an organization and how those jobs relate to one another
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5. What Elements Influence Organizational Structure?
Purpose
Mission
Organizational structure is usually quite fluid!
Strategy
Size
Technology
External Environment
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6. The Building Blocks of Organizational Structure
SPECIALIZATION:
What needs to be done, and who will do it?
DEPARTMENTALIZATION
Customer
Geographic
Product
Functional
Process
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7. The Decision-Making Hierarchy
Assigning Tasks
Performing Tasks
Distributing Authority
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8. Centralized and Decentralized Organizations
Top managers hold most decision-making authority
Decentralized
Lower level managers hold significant decision-making authority
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9. Organizational Structure and Span of Control
Relatively narrow span of control
Relatively wide span of control
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10. Forms of Authority Line Authority Staff Authority
Line Departments
Staff Authority
Staff Members
Committee and Team Authority
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11. Basic Forms of Organizational Structure
Functional Organization
Divisional Organization
International Organization
Matrix Organization
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12. Organizational Design in the 21st Century
Boundaryless Organizations
Team Organizations
Virtual Organizations
Learning Organizations
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13. The Informal Organization: A Powerful Dynamic
Informal Groups
The Grapevine
Intrapreneuring
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14. 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.
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15. Chapter Review (cont’d)
Distinguish among functional, divisional, matrix, and international organizational structures.
Describe the informal organization and intrapreneuring.
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