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Designing Organizational Structure - Document preview page 1

Designing Organizational Structure - Page 1

Document preview content for Designing Organizational Structure

Designing Organizational Structure

An analysis of different organizational structures and their impact on business efficiency.

Charlotte Kelly
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12 months ago
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Designing Organizational Structure - Page 1 preview imageCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–1Designing Organizational Structure•Organizational Design➢A process involving decisions about six key elements:❖Work specialization❖Departmentalization❖Chain of command❖Span of control❖Centralization and decentralization❖Formalization
Page 2 of 4
Designing Organizational Structure - Page 2 preview imageCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–2Organizational Structure•Work Specialization➢The degree to which tasks in the organization aredivided into separate jobs with each step completedby a different person.➢Overspecialization can result in human diseconomiesfrom boredom, fatigue, stress, poor quality, increasedabsenteeism, and higher turnover.
Page 3 of 4
Designing Organizational Structure - Page 3 preview imageCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–3Departmentalization by Type•Functional➢Grouping jobs byfunctions performed•Product➢Grouping jobs by productline•Geographical➢Grouping jobs on thebasis of territory orgeography•Process➢Grouping jobs on thebasis of product orcustomer flow•Customer➢Grouping jobs by type ofcustomer and needs
Page 4 of 4
Designing Organizational Structure - Page 4 preview imageCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–4Organizational Structure (cont’d)•Chain of Command➢The continuous line of authority that extends fromupper levels of an organization to the lowest levels ofthe organization and clarifies who reports to whom.
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Subject
Business Management

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