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Designing a Structure
- decide how to divide tasks
- decide the basis on which to group individual jobs
- decide appropriate size of groups
- distribute authority among the jobs
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Division of Labor
- Personal specialties
- natural sequence of work
- vertical plane
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Delegation of Authority
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Reasons to decentralize
- Succession planning
- Competition
- Autonomy satisfies desire to participate
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Reasons to centralize
- Reduce formal training expense
- resistance to delegation
- adminsitrative costs
- eliminate duplication of function
- Decision guidelines
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Departmental Bases
- Functional Departmentalization
- geographic departmentalization
- product departmentalization
- Customer departmentalization
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Span of Control
- Required contact
- degree of specialization
- ability to communicate
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Dimensions of structure
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formalization
- high specialization of labor
- high delegation of authority
- jobs within departments have a lot of similarities
- wide span of control, little 1:1
- centralization
- complexity
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Design models
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Mechanistic model
- Principle of Specialisation
- Principle of Unity of Direction
- principle of Authority and Responsibility
- Scalat Chain principle
- Bureaucracy
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Organic Model
- relatively simple
- relatively decentralized
- relatively informal
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Matrix Model
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Pros
- efficient use of resources
- flexibility in conditions of change
- technical excellence
- free top management for planning
- improve motivation and commitment
- provides opportunity for development
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Forms
- task force
- teams
- product managers
- product management departments
- Multinational Structure
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Virtual Organizations
-
realities
- transaction cost theories
- face-to-face interactions
- design implications
- Boundaryless Orgnanizations