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Chapter 10

Chapter 10. Managing Organizational Structure and Culture. Organizational Structure. Organizational Architecture

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Chapter 10

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  1. Chapter 10 Managing Organizational Structure and Culture

  2. Organizational Structure • Organizational Architecture • The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used MGMT 321 – Chapter 10

  3. Organizational Structure • Organizing • Establishing working relationships among employees to achieve goals. • Organizational Structure • Formal system of task and reporting relationships showing how workers use resources. • Organizational Design • Creating a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way MGMT 321 – Chapter 10

  4. Factors Affecting Organizational Structure MGMT 321 – Chapter 10

  5. The Organizational Environment Organization structure depends on: • How to group tasks into individual jobs • How to group jobs into functions and divisions • How to allocate authority and coordinate functions and divisions MGMT 321 – Chapter 10

  6. Job Design • Job Design • Deciding how to divide tasks into specific jobs • Job Enlargement • Increasing the number of different tasks in a given job by changing the division of labor • Job Enrichment • Increasing the degree of a worker’s responsibility MGMT 321 – Chapter 10

  7. The Job Characteristics Model MGMT 321 – Chapter 10

  8. Job Characteristics Model MGMT 321 – Chapter 10

  9. Grouping Jobs into Functions • Function • Group of people who possess similar skills to perform their jobs • Functional Structure • An organizational structure composed of all the departments that an organization requires to produce its goods or services MGMT 321 – Chapter 10

  10. Divisional Structures • Divisional Structure • Managers create a series of business units to produce a specific kind of product for a specific kind of customer • Types of Divisional Structures • Product • Market • Geographic MGMT 321 – Chapter 10

  11. Types of Divisional Structures MGMT 321 – Chapter 10

  12. Matrix Structure MGMT 321 – Chapter 10

  13. Product Team Structure MGMT 321 – Chapter 10

  14. Federated’s Hybrid Structure MGMT 321 – Chapter 10

  15. Allocating Authority • Hierarchy of Authority • An organization’s chain of command • Span of control • Line Manager • Staff Manager MGMT 321 – Chapter 10

  16. Tall Organizations MGMT 321 – Chapter 10

  17. Flat Organizations MGMT 321 – Chapter 10

  18. Decentralization of Authority • Decentralizing authority • Disadvantages • Teams may begin to pursue their own goals at the expense of organizational goals • Can result in a lack of communication among divisions MGMT 321 – Chapter 10

  19. Integrating Mechanisms MGMT 321 – Chapter 10

  20. Organizational Culture MGMT 321 – Chapter 10

  21. Adaptive and Inert Cultures • Adaptive cultures • Values and norms help an organization grow and change as needed to be effective • Inert cultures • Values and norms that fail to motivate or inspire employees • Lead to stagnation and often failure over time MGMT 321 – Chapter 10

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