What What Is Is Organizational Organizational Structure? Structure? Key KeyElements: Elements: • • Work Workspecialization specialization • • Departmentalization Departmentalization • • Chain Chainof ofcommand command • • Span Spanof ofcontrol control • • Centralization Centralizationand and decentralization decentralization • • Formalization Formalization
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Key Terms accountability authority centralized organization chain of command committee and team authority customer departmentalization decentralized organization delegation departmentalization division divisional structure flat organizational structure functional departmentalization functional structure geographic departmentalization grapevine informal organization international organizational structures intrapreneuring job specialization line authority line department matrix structure organization chart organizational structure process departmentalization product departmentalization © 2009 Pearson Education, Inc.
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Planning Departments • Once jobs have been specialized, they need to be grouped into logical units. – This is called departmentalization. – Here are some areas of departmentalization: • • • • • • Product departmentalization Process departmentalization Functional departmentalization Customer departmentalization Geographic departmentalization Multi forms (combinations) of departmentalization © 2009 Pearson Education, Inc.
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Organizational Organizational Designs Designs and and Employee Employee Behavior Behavior Research ResearchFindings: Findings: • • Work Workspecialization specializationcontributes contributesto tohigher higheremployee employee productivity, productivity,but butititreduces reducesjob jobsatisfaction. satisfaction. • • The Thebenefits benefitsof ofspecialization specializationhave havedecreased decreasedrapidly rapidlyas as employees employeesseek seekmore moreintrinsically intrinsicallyrewarding rewardingjobs. jobs. • • The Theeffect effectof ofspan spanof ofcontrol controlon onemployee employeeperformance performanceisis contingent contingentupon uponindividual individualdifferences differencesand andabilities, abilities,task task structures, structures,and andother otherorganizational organizationalfactors. factors. • • Participative Participativedecision decisionmaking makinginindecentralized decentralized organizations organizationsisispositively positivelyrelated relatedto tojob jobsatisfaction. satisfaction.
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Organizational Structure Organizational design decisions revolve around: • • • • • • Work specialization Departmentalization Chain of command Span of control Amount of centralization or decentralization Amount of formalization Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-35
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Departmentalization Process of dividing work activities into units within the organization.      Product departmentalization: organized based on the goods and services a company offers. Geographical departmentalization: organized by geographical regions within a country or, for a multinational firm, by region throughout the world. Customer departmentalization: organized by the different types of customers the organization serves. Functional departmentalization: organized by business functions such as finance, marketing, human resources, and production. Process departmentalization: organized by work processes necessary to complete production of goods or services.
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Industry Speaker Series June 4, 2003 Texas Instruments: E&PS Supply Chain Apr. 10, 2003 Retail Demand and Supply Chain Management – continued Apr. 17, 2003 Softgoods Demand and Supply Chain Management Apr. 7, 2003 Consumer Electronics Supply Chain Management and Case Study – continued Mar. 24, 2003 Consumer Electronics Supply Chain Management and Case Study – continued Feb. 28, 2003 Wireless Data Management and the Supply Chai n Feb. 20, 2003 Retail Demand and Supply Chain Management Feb. 17, 2003 Consumer Electronics Supply Chain Management and Case Study – continued Jan. 31, 2003 Air Cargo Supply Chain Management and Challe nges Unlock the Value in Your Supply Chain Jan. 28, 2003 Lean Design: Using Blitz QFD to Deliver Maximu m for Minimum Contract Manufacturing in China Jan. 27, 2003 Consumer Electronics Supply Chain Management and Case Study June 23, 2004 Supply Chain Management at BlockBuster June 17, 2004 CEO Forum & Agile Seminar Feb. 16, 2004 Inventory Management Nov. 3, 2003 Logistics Planning with i2 Oct. 3, 2003 Trends in Wholesale Inventory Management Sept. 26, 2003 The Art and Science of Consulting Sept. 12, 2003 The Outsourced Supply Chain July 28, 2003 Supply Chain Management with Oracle July 21, 2003 Supply Chain Management with SAP APO July 21, 2003 Filling a Niche in the Consumer Goods Demand Chain July 18, 2003 Dell Site Visit, Austin Texas July 14, 2003 June 23, 2003 Slide 14
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