Presentation on theme: "Organizing the Business"— Presentation transcript: 1 Organizing the Business Show
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Introduction In this chapter we
3 Learning Objectives Discuss the factors that influence a firm’s organizational structure. Explain specialization and departmentalization as two of the building blocks of
organizational structure. Describe centralization and decentralization, delegation, and authority as the key ingredients in establishing the decision-making hierarchy. 4 Learning Objectives Explain the differences among functional, divisional, matrix, and international organizational structures and
describe the most popular new forms of organizational design. Describe the informal organization and discuss intrapreneuring. 5 What Is Organizational Structure? 6 Organization
Charts Organization Chart 7 The Organization Chart
8 Determinants of Organizational Structure 9 The Building Blocks
of Organizational Structure 10 Specialization Job Specialization 11 Departmentalization Departmentalization Profit Center 12 Departmentalization (cont.) 13
Departmentalization (cont.) 14 Multiple Forms of Departmentalization
15 Distributing Authority: Centralization and Decentralization
16 Tall and Flat Organizations 17 Tall and Flat Organizations (cont.) 18
Span of Control The distribution of authority in an organization also affects the number of people who work for any individual manager. Span of Control number of people supervised by one manager As you can see in Figure 6.3, the distribution of authority in an organization also affects the number of people who work for any individual manager. In a flat organizational structure, the number of people directly managed by one
supervisor, the manager’s span of control, is usually wide. In tall organizations, span of control tends to be narrower. 19 The Delegation Process 20 Learning to Delegate Effectively 21 Forms of Authority Line Authority Staff Authority Staff Members 22 Forms of Authority (cont.)
23 Line and Staff Organization
24 Basic Forms of Organizational Structure
25 Functional Structure Figure 6.5 illustrates a functional structure. 26 Basic Forms of Organizational Structure 27 Divisional Structure Figure 6.6 illustrates a divisional structure. 28 Basic Forms of Organizational Structure 29 Matrix Structure
Figure 6.7 shows how Martha Stewart Living Omnimedia has created a permanent matrix organization for its lifestyle business. As you can see, the company is organized broadly into media and merchandising groups, each of which has specific product and product groups. 30 Basic
Forms of Organizational Structure
31 International Organizational Structure
32 Organizational Design for the Twenty-First Century 33 Organizational Design for the Twenty-First Century (cont.) 34 The Virtual Organization 35 Informal Organization 36 Organizational Grapevine
37 Intrapreneuring Intrapreneuring 38 Applying What You’ve Learned 39 Applying What You’ve Learned (cont.) What kind of departmentalization happens when an organization is divided into operations related to different areas of the country?Answer and Explanation: Process departmentalization is a method or practice of conducting a process by separating related operations into different groups or specialized functional areas.
Which of the following is the process of dividing an organization according to the areas of the country or world served by a business unit?Dividing an organization according to groups' activities is known as departmentalization. is the process of creating and maintaining the innovation and flexibility of a small-business environment within the confines of a large organization.
What kind of departmentalization happens when an organization is divided into operations related to different products quizlet?Departmentalization is the process of grouping jobs into logical units. What kind of departmentalization happens when an organization is divided into operations related to different products? Process departmentalization refers to organizational divisions based on product process.
Which of the following is the process of dividing an organization to offer products and meet the needs of an identifiable customer group?Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests and spending habits.
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