1. Designing Organizational Structure Chapter Seven Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 7-2 Designing Organizational Structure Organizing – The process by which managers establish the structure of working relationships among employees to achieve goals

3. 7-3 Designing Organizational Structure Organizational Structure – Formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals

4. Factors Affecting Organizational Structure Figure 7.1 7-4

5. The Job Characteristics Model Figure 7.2 7-5

6. Job Characteristics Model 7-6

7. Grouping Jobs into Functions Functional Structure – An organizational structure composed of all the departments that an organization requires to produce its goods or services 7-7

8. 7-8 Divisional Structures Divisional Structure – An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer

9. Figure 7.4 Product, Market, and Geographic Structures 7-9

10. Global Geographic and Global Product Structures Figure 7.5 7-10

11. Matrix Structure Figure 7.6 7-11

12. Macy’s Hybrid Structure Figure 7.7 7-12

13. Tall & Flat Organizations Figure 7.9 7-13

14. Types and Examples of Integrating Mechanisms Figure 7.10 7-14

15. 7-15 Strategic Alliances Strategic Alliance – An agreement in which managers pool or share firm’s resources and know-how with a foreign company and the two firms share in the rewards and risks of starting a new venture. Outsource – To use outside suppliers and manufacturers to produce goods and services