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Module 8 – Organizing for Action

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1 Module 8 – Organizing for Action
Chapter 6

2 Learning Objectives LO 1 Define the characteristics of organization structure: organic or mechanistic, differentiation, and integration. LO 2 Summarize how authority operates and who generally holds top authority in a company. LO 3 Discuss how span of control affects structure and managerial effectiveness. LO 4 Explain how to delegate effectively. 6-2

3 Learning Objectives (cont.)
LO5 Distinguish between centralized and decentralized organizations. LO6 Define basic types of organization structures, and summarize their strengths. LO7 Describe important mechanisms used to coordinate work. LO8 Discuss how organizations can improve their agility through their strategy, commitment to customers, and use of technology.

4 Organizing Definition
Definition The deployment of organizational resources to achieve strategic goals The process by which managers establish the structure of working relationships among employees to achieve goals

5 Organization Structure
The set of formal tasks assigned to individuals and departments Formal reporting relationships Mechanistic (Bureaucratic/Hierarchical) to Organic (Learning/Flat/Horizontal)

6 Factors Influencing Structure
Organizational environment Strategy Technology Human resources

7 Organizational chart Schematic representation of these arrangements and relationships The reporting structure and division of labor in an organization

8 Conventional Organization Chart

9 Differentiation Definition Specialization Division of labor
Different units, different task, different skills, different ways Specialization Division of labor

10 Big problem Integration Coordination

11 Vertical structure Definition Authority


13 Delegation Definition Key distinctions Advantages Responsibility
Authority Accountability Advantages

14 Decentralization Centralized organization Decentralized organization
An organization in which high-level executives make most decisions and pass them down to lower levels for implementation Decentralized organization An organization in which lower-level managers make important decisions Relationship with delegation????

15 Centralized Organization

16 Decentralized Organization

17 Horizontal structure

18 Horizontal structure

19 Horizontal structure

20 Horizontal structure

21 Horizontal structure Function Divisional Matrix

22 The Functional Organization

23 The Divisional Organization

24 Matrix Organizational Structure

25 Matrix Organizational Structure
Figure 6.5

26 The Network Organization

27 Coordination Standardization Plans Mutual adjustment

28 Organizational agility
Definition Poster child

29 Organizational agility
Core competencies

30 Organizational agility
Core competencies Strategic alliances

31 Organizational agility
Core competencies Strategic alliances Learning organization

32 Organizational agility
Core competencies Strategic alliances Learning organization High-involvement organization

33 Organizational size

34 Organizational size

35 Organizational size

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