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2. Organizing The Business Enterprise
Chapter 7
Organizing The
Business Enterprise

3. Copyright 2005 Prentice- Hall, Inc.
Chapter Outline
What is Organizational Structure?
The Building Blocks of Organizational Structure
Establishing The Decision-Making Hierarchy
Basic Forms of Organizational Structure
Informal Organization
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4. Organizational Structure Influenced By:
Jobs To Be Done
How Jobs Relate To One Another
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5. Determinants Of Organization
Purpose
Mission
Strategy
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6. Copyright 2005 Prentice- Hall, Inc.
Organization Chart
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7. Copyright 2005 Prentice- Hall, Inc.
Chain Of Command
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8. Building Blocks Of Structure
Specialization- Specific Jobs To Specific People
Departmentalization
Group Jobs In Logical Units
Profit Center
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9. Types Of Departmentalization
Customer
Product
Process
Geographic
Functional
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10. Customer Departmentalization
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11. Product Departmentalization
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12. Process Departmentalization
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13. Geographic Departmentalization
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14. Functional Departmentalization
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15. Multiple Forms Of Departmentalization
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16. Hierarchy For Decisions
Assign Tasks
Responsibility
Authority
Perform Tasks
Delegation
Accountability
Distribute Authority
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17. Small Business Delegation Fear
Employee Can’t Do As Well
Something Will Go Wrong
No Long-Range Plan
Not Up-To-Date On Industry Trends & Competitive Products
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18. Big Business Delegation Fear
Subordinate Doesn’t Know Job
Subordinate “Show Manager Up”
Desire To Retain Control
Inability To Effectively Delegate
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19. Centralized/Tall Structure
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20. Copyright 2005 Prentice- Hall, Inc.
Flat Organization
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21. Decentralized/Flat Structure
Makes Some Decisions
(Empowered)
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22. Copyright 2005 Prentice- Hall, Inc.
Tall Organization
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23. Copyright 2005 Prentice- Hall, Inc.
Span Of Control
Narrow
Wide
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24. Line vs. Staff Authority
Staff Managers
Line Managers
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25. Line/Staff Organization
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26. Committee/Team Authority
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27. Functional Organization
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28. Divisional Organization
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29. Copyright 2005 Prentice- Hall, Inc.
Matrix Organization
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30. International Division Structure
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31. 21st Century Organizations
Boundaryless
Team
Virtual
Learning
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32. Copyright 2005 Prentice- Hall, Inc.
Virtual Organization
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33. Informal Organizations
Informal Groups- Interact Among Themselves
Grapevine
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34. Intrapreneuring Safety Of Large Organization Intrapreneur
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