1. Fourth Edition Copyright ©2003 Prentice Hall, Inc. PART 2........................ Understanding the Business of Managing

2. Copyright ©2003 Prentice Hall, Inc. 6 - 2 Chapter 6 Organizing the Business Enterprise

3. Copyright ©2003 Prentice Hall, Inc. 6 - 3 “Anyone can do any amount of work provided it isn't the work he's supposed to be doing at the moment.” ~ Robert Benchley

4. Copyright ©2003 Prentice Hall, Inc. 6 - 4 Key Topics Organizational structure Specialization and departmentalization Responsibility, authority, delegation, and accountability Functional, divisional, matrix, and international organizational structures The informal organization and intrapreneuring

5. Copyright ©2003 Prentice Hall, Inc. 6 - 5 Organizational Structure Specification of the jobs to be done within an organization and how those jobs relate to one another

6. Copyright ©2003 Prentice Hall, Inc. 6 - 6 Organizational structure is usually quite fluid! External Environment Technology Size Strategy Mission Purpose What Elements Influence Organizational Structure?

7. Copyright ©2003 Prentice Hall, Inc. 6 - 7 Organization Chart CONTEMPORARY LANDSCAPE SERVICES, INC. President/Owner Mark Ferguson Retail Shop Manager Nursery Manager Landscape Operations Manager Buyer Office Manager BuyerSupervisor Residential Manager Commercial Manager

8. Copyright ©2003 Prentice Hall, Inc. 6 - 8 The Building Blocks of Organizational Structure SPECIALIZATION What needs to be done, and who will do it? DEPARTMENTALIZATION CustomerGeographic ProductFunctional Process

9. Copyright ©2003 Prentice Hall, Inc. 6 - 9 The Decision-Making Hierarchy Assigning Tasks Performing Tasks Distributing Authority

10. Copyright ©2003 Prentice Hall, Inc. 6 - 10 Issues With Delegating Small Business Owners: Employees can’t do anything as well as you can Something will go wrong if someone else takes over a job Lack of time for long range planning Sense of being in the dark about industry trends and competition

11. Copyright ©2003 Prentice Hall, Inc. 6 - 11 Issues With Delegating Big Business Managers: Fear that subordinates don’t really know how to do the job Fear that a subordinate might “show up” the manager by doing well Desire for control Lack of delegating ability

12. Copyright ©2003 Prentice Hall, Inc. 6 - 12 Centralized and Decentralized Organizations Centralized Decentralized Lower level managers hold significant decision-making authority Top managers hold most decision-making authority

13. Copyright ©2003 Prentice Hall, Inc. 6 - 13 Relatively narrow span of control Relatively wide span of control Organizational Structure and Span of Control

14. Copyright ©2003 Prentice Hall, Inc. 6 - 14 Forms of Authority Line Authority Line Departments Staff Authority Staff Members Committee and Team Authority

15. Copyright ©2003 Prentice Hall, Inc. 6 - 15 Basic Forms of Organizational Structure Divisional Organization International Organization Functional Organization Matrix Organization

16. Copyright ©2003 Prentice Hall, Inc. 6 - 16 A Matrix Organization MARTHA STEWART Media Group MagazinesBooksInternet Radio/ Newspaper Network/ Cable TV Merchandising Group Kmart line Catalog line Sears Paint Specialty retailing Area Specialists Cooking Entertainment Weddings Crafts Gardening Home Holidays Children

17. Copyright ©2003 Prentice Hall, Inc. 6 - 17 An International Organization CEO Retail Division A Retail Division B International Division Latin America EuropeAsia

18. Copyright ©2003 Prentice Hall, Inc. 6 - 18 The Future of Organizational Structure Boundaryless Organizations Team Organizations Virtual Organizations Learning Organizations

19. Copyright ©2003 Prentice Hall, Inc. 6 - 19 Informal Groups The Grapevine Intrapreneuring The Informal Organization A Powerful Dynamic

20. Copyright ©2003 Prentice Hall, Inc. 6 - 20 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.

21. Copyright ©2003 Prentice Hall, Inc. 6 - 21 Chapter Review Distinguish among functional, divisional, matrix, and international organizational structures. Describe the informal organization and intrapreneuring.