Authoritative Structure and Design .


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Organizational Structure and Design. Chapter 10. L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. Defining Organizational Structure Discuss the traditional and contemporary views of work specialization, chain of command, and span of control.
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Slide 1

Hierarchical Structure and Design Chapter 10 © 2007 Prentice Hall, Inc. All rights saved.

Slide 2

L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this part. Characterizing Organizational Structure Discuss the customary and contemporary perspectives of work specialization, hierarchy of leadership, and traverse of control. Portray each of the five types of departmentalization. Clarify cross-practical groups. Separate, specialist, duty, and solidarity of order. Tell what variables impact the measure of centralization and decentralization. Clarify how formalization is utilized as a part of hierarchical outline. © 2007 Prentice Hall, Inc. All rights saved.

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L E A R N I N G O U T L I N E (cont\'d) Follow this Learning Outline as you read and study this part. Hierarchical Design Decisions Contrast robotic and natural associations. Normal Organizational Designs Contrast the three conventional hierarchical plans. Clarify group, lattice, and venture structures. © 2007 Prentice Hall, Inc. All rights saved.

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Defining Organizational Structure Organizational Structure The formal game plan of employments inside an association. Hierarchical Design A procedure including choices around six key components: Work specialization Departmentalization Chain of order Span of control Centralization and decentralization Formalization © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–1 Purposes of Organizing Divides work to be done into particular occupations and offices. Appoints errands and obligations related with individual employments. Facilitates differing authoritative errands. Bunches employments into units. Sets up connections among people, gatherings, and divisions. Sets up formal lines of specialist. Assigns and sends authoritative assets. © 2007 Prentice Hall, Inc. All rights held.

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Organizational Structure Work Specialization how much errands in the association are partitioned into discrete employments with every progression finished by an alternate individual. Overspecialization can bring about human diseconomies from weariness, weakness, stretch, low quality, expanded non-attendance, and higher turnover. © 2007 Prentice Hall, Inc. All rights held.

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Functional Grouping employments by capacities performed Product Grouping occupations by product offering Geographical Grouping employments on the premise of domain or topography Process Grouping employments on the premise of item or client stream Customer Grouping occupations by sort of client and necessities Departmentalization by Type © 2007 Prentice Hall, Inc. All rights held.

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Exhibit 10–2 Functional Departmentalization Advantages Efficiencies from assembling comparable claims to fame and individuals with basic aptitudes, information, and introductions Coordination inside useful region top to bottom specialization Disadvantages Poor correspondence crosswise over practical territories Limited perspective of authoritative objectives © 2007 Prentice Hall, Inc. All rights held.

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Exhibit 10–2 (cont\'d) Geographical Departmentalization Advantages More viable and effective treatment of particular provincial issues that emerge Serve needs of interesting geographic markets better Disadvantages Duplication of capacities Can feel segregated from other hierarchical ranges © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–2 (cont\'d) Product Departmentalization + Allows specialization specifically items and administrations + Managers can get to be specialists in their industry + Closer to clients – Duplication of capacities – Limited perspective of authoritative objectives © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–2 (cont\'d) Process Departmentalization + More proficient stream of work exercises – Can just be utilized with specific sorts of items © 2007 Prentice Hall, Inc. All rights held.

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Exhibit 10–2 (cont\'d) Customer Departmentalization + Customers\' needs and issues can be met by authorities - Duplication of capacities - Limited perspective of hierarchical objectives © 2007 Prentice Hall, Inc. All rights held.

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Organization Structure (cont\'d) Chain of Command The consistent line of expert that reaches out from upper levels of an association to the most minimal levels of the association and elucidates who reports to who. © 2007 Prentice Hall, Inc. All rights held.

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Organization Structure (cont\'d) Authority The rights natural in an administrative position to instruct individuals and to anticipate that them will do it. Duty The commitment or desire to perform. Solidarity of Command The idea that a man ought to have one manager and ought to report just to that individual. © 2007 Prentice Hall, Inc. All rights saved.

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Organization Structure (cont\'d) Span of Control The quantity of representatives who can be viably and productively administered by a chief. Width of traverse is influenced by: Skills and capacities of the administrator Employee attributes Characteristics of the work being done Similarity of undertakings Complexity of assignments Physical closeness of subordinates Standardization of errands © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–3 Contrasting Spans of Control © 2007 Prentice Hall, Inc. All rights held.

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Organization Structure (cont\'d) Centralization how much basic leadership is gathered at a solitary point in the associations. Associations in which beat supervisors settle on every one of the choices and lower-level workers essentially complete those requests. Decentralization Organizations in which basic leadership is pushed down to the administrators who are nearest to the activity. Worker Empowerment Increasing the basic leadership expert (power) of representatives. © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–4 Factors that Influence the Amount of Centralization More Centralization Environment is steady. Bring down level supervisors are not as skilled or experienced at settling on choices as upper-level directors. Bring down level administrators would prefer not to have a say in choices. Choices are moderately minor. Association is confronting an emergency or the danger of organization disappointment. Organization is vast. Powerful execution of organization procedures relies on upon chiefs holding say over what happens. © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–4 (cont\'d) Factors that Influence the Amount of Centralization More Decentralization Environment is mind boggling, questionable. Bring down level directors are competent and experienced at deciding. Bring down level chiefs need a voice in choices. Choices are noteworthy. Corporate culture is interested in permitting supervisors to have a say in what happens. Organization is topographically scattered. Compelling execution of organization systems relies on upon administrators having association and adaptability to decide. © 2007 Prentice Hall, Inc. All rights held.

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Organization Structure (cont\'d) Formalization how much occupations inside the association are institutionalized and the degree to which representative conduct is guided by principles and methods. Exceptionally formalized employments offer little attentiveness over what can anyone do. Low formalization implies less requirements on how representatives do their function. © 2007 Prentice Hall, Inc. All rights saved.

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Mechanistic Organization An inflexible and firmly controlled structure High specialization Rigid departmentalization Narrow ranges of control High formalization Limited data arrange (descending) Low choice interest Organic Organization Highly adaptable and versatile structure Non-institutionalized occupations Fluid group based structure Little direct supervision Minimal formal tenets Open correspondence arrange Empowered workers Organizational Design Decisions © 2007 Prentice Hall, Inc. All rights held.

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Exhibit 10–5 Mechanistic versus Organic Organization • High specialization • Rigid departmentalization • Clear levels of leadership • Narrow ranges of control • Centralization • High formalization • Cross-useful groups • Cross-progressive groups • Free stream of data • Wide traverses of control • Decentralization • Low formalization © 2007 Prentice Hall, Inc. All rights held.

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Common Organizational Designs Traditional Designs Simple structure Low departmentalization, wide traverses of control, brought together specialist, little formalization Functional structure Departmentalization by capacity Operations, fund, HR, and item innovative work Divisional structure Composed of particular specialty units or divisions with constrained self-sufficiency under the coordination and control the parent partnership. © 2007 Prentice Hall, Inc. All rights held.

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Exhibit 10–7 Strengths and Weaknesses of Traditional Organizational Designs © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–8 Contemporary Organizational Designs © 2007 Prentice Hall, Inc. All rights held.

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Exhibit 10–9 An Example of a Matrix Organization © 2007 Prentice Hall, Inc. All rights saved.

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Exhibit 10–8 (cont\'d) Contemporary Organizational Designs © 2007 Prentice Hall, Inc. All rights saved.

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An Example of a Network Organization 1. Business Nature : Selling totes of favor in-house outlines to the neighborhood retail chains i.e. retailers rather than individual shoppers 2. Prerequisites of the Business: The business is shaped by a couple accomplices who turn into the center official gathering of the organization, caring for general administration, bookkeeping work of the business and planning the outsourcing exercises Limited start-up capital is accessible, overwhelming introductory speculation is kept away from and the quantity of staff on the finance is limited. A business group is required to pay normal visits to the retailers Continuo

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