PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 6 Organizing the Business Enterprise

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–2 “Anyone can do any amount of work provided it isn't the work he's supposed to be doing at the moment.” —Robert Benchley

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–3 Key Topics Organizational structure Specialization and departmentalization Responsibility, authority, delegation, and accountability Functional, divisional, matrix, and international organizational structures The informal organization and intrapreneuring

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–4 Organizational Structure Specification of the jobs to be done within an organization and how those jobs relate to one another

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–5 Organizational structure is usually quite fluid! External Environment Technology Size Strategy Mission Purpose What Elements Influence Organizational Structure?

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–6 The Organization Chart Figure 6–1

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–7 The Building Blocks of Organizational Structure SPECIALIZATION: What needs to be done, and who will do it? DEPARTMENTALIZATION CustomerGeographic ProductFunctional Process

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–8 Multiple Forms of Departmentalization Figure 6–2

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–9 The Decision-Making Hierarchy Assigning Tasks Performing Tasks Distributing Authority

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–10 Flat Organization: Typical Law Firm Figure 6–3a

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–11 Tall Organization: United States Army Figure 6–3b

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–12 Centralized and Decentralized Organizations Centralized Decentralized Lower level managers hold significant decision-making authority Top managers hold most decision-making authority

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–13 Relatively narrow span of control Relatively wide span of control Organizational Structure and Span of Control

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–14 Forms of Authority Line Authority  Line Departments Staff Authority  Staff Members Committee and Team Authority

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–15 Line and Staff Organization Figure 6–4

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–16 Basic Forms of Organizational Structure Divisional Organization International Organization Functional Organization Matrix Organization

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–17 Matrix Organization at Martha Stewart Figure 6–5

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–18 International Division Structure Figure 6–6

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–19 Organizational Design in the 21 st Century Boundaryless Organizations Team Organizations Virtual Organizations Learning Organizations

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–20 The Virtual Organization Figure 6–7

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–21 The Informal Organization: A Powerful Dynamic Informal Groups The Grapevine Intrapreneuring

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–22 Chapter Review Discuss the elements that influence organizational structure. Explain specialization and departmentalization. Distinguish among responsibility, authority, delegation, and accountability. Explain decision-making in centralized vs. decentralized organizations.

Copyright © 2005 Prentice Hall, Inc. All rights reserved.6–23 Chapter Review (cont’d) Distinguish among functional, divisional, matrix, and international organizational structures. Describe the informal organization and intrapreneuring.