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Unit3CompanyStructure.

1/35TrendofOSContentsIntroductionPrincipleofOrganizationalDesignVerticaldimensionHorizontaldimensionTrendofOrganizationalDesignAssignment2/35Organizationalstructureisdefinedasthespecificationofthejobstobedonewithinanorganizationandthewaysinwhichtheyrelatetooneanother.Definition3/354/35SimplestructureWife

Husband5/35ExecutiveDirector

AssistanttotheExecutiveDirector

DirectorofPersonnelDirectorofPurchasingDirectorofOperationOtherDirectorsUnit1Manager

Unit2Manager

PersonnelOperationPurchasingOther6/35ExecutiveDirector

AssistanttotheExecutiveDirector

DirectorofPersonnelDirectorofPurchasingDirectorofOperationOtherDirectorsUnit1Manager

Unit2Manager

PersonnelOperationPurchasingOther7/35Authority:Therightsinherentlieinamanagerialpositiontogiveordersandexpectthemtobeobeyed.Responsibility:Anobligationtoperformassignedactivities.Authority&Responsibility8/35Lineauthority:theauthoritythatentitlesamanagertodirecttheworkofasubordinate.Staffauthority:authoritygiventoindividualswhosupport,assist,andadviseotherswhohavelineauthority.Chainofcommand:theflowofauthorityfromthetoptothebottomofanorganization.Authority9/35Centralization:lowermanagersarenotcapableatmakingdecisions.Validity:Morestableenvironment.Decisionissignificant.Companyislarge.Disadvantage:Facecrisisorfailurerisk.Centralization10/35Decentralization:lowermanagersarecapableatmakingdecisions.Validity:uncertainEnvironment.DecisionisminorCompanyisgeographicallydispersed.Decentralization11/35Thenumberofsubordinatesamanagercansuperviseefficientlyandeffectively.SpanofControl12/35ContrastingSpansofControlAssumingSpanof4

AssumingSpanof8

1148164096512646425610244096Operators:4096Managers:1365level:7Operators:4096Managers:585Level:513/35Tall&Flatorg:

Tallstructureshavemanylevelsofauthorityrelativetotheorganization’ssize.CommunicationgetsdifficultandCommunicationscanalsobecomegarbled.Moretimebeingtakentoimplementdecisions.Flatstructureshavefewlevelsbutwidespansofcontrol.Resultsinquickcommunicationsbutcanleadtooverworkedmanagers.14/35TheprocessofgroupingindividualsintoseparateunitsordepartmentstoaccomplishorganizationgoalsFunctionaldepartmentalizationProduct&ServicedepartmentalizationGeographicDepartmentalizationMarketorCustomerDepartmentalizationProcessdepartmentalizationGlobalstructureDepartmentalization15/35Groupingactivitiesbyfunctionsperformed.Functionaldepartmentalization16/35FunctionalDepartmentalizationExecutiveDirector

DirectorofPersonnelDirectorofPurchasingDirectorofOperationOtherDirectorsUnit1Manager

Unit2Manager

PersonnelOperationPurchasingOther17/3518/35divisionscreatedaccordingtothetypeofproductorservice.Product&Service

departmentalization19/35Product&ServiceStructure20/35Geographicstructure:divisionsbasedontheareaofacountryorworldserved.GeographicDepartmentalization21/35GeographicStructure22/35Marketstructure:divisionsbasedonthetypesofcustomersserved.MarketorCustomerDepartmentalization23/35MarketorCustomerDepartmentalization24/35ProcessdepartmentalizationGroupingactivitiesonthebasisofproductorcustomerflow.25/35Processdepartmentalization26/35Whenmanagersfinddifferentproblemsordemandsacrosstheglobe,globalsolutionsareneeded.Globalgeographicstructure:

differentdivisionsserveeachworldregion.Globalproductstructure:

Customersindifferentregionsbuysimilarproductssofirmskeepmostfunctionalworkathomeandsetupadivisiontomarketproductabroad.GlobalStructures27/35TrendofOSMatrixStructureTeam-basedStructureNetwork

Structure28/35Matrixstructure:

managersgrouppeoplebyfunctionandproductteamssimultaneously.Advantage:Disadvantage:MatrixStructure29/35MatrixStructureCEOFunc.ManagersSalesDesignProductionProductteamAProductteamBProductteamCProductTeam=twobossemployeeTeamManagers30/35ProductTeamStructure:

Themembersarepermanentlyassignedtotheteamandempoweredtobringaproducttomarket.Team-basedStructure31/35ProductTeamStructureCEOFunc.ManagersSalesDesignProductionManufacturingManufacturingManufacturing=ProductTeamManager=Teammember32/35awholese

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