lecture 13. chapter 7 organizing the business enterprise
TRANSCRIPT
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Lecture 13
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Chapter 7
Organizing The Business Enterprise
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Chapter Outline
What is Organizational Structure?The Building Blocks of Organizational
StructureEstablishing The Decision-Making
HierarchyBasic Forms of Organizational
StructureInformal Organization
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Organizational Structure Influenced By:
• Jobs To Be Done
• How Jobs Relate To One Another
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Determinants Of Organization
• Purpose
• Mission
• Strategy (e.g a rapid growing firm VS a stable firm
• Size, technology and changes in environment also affect structure
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Organization Chart
•Use charts to clarify structure and to show where employee fit
•Solid lines defines the chain of command or reporting relationships
•Large organizations more complex organizational charts
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Organization Chart
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Chain Of Command
CEOCEO
Division V.P.Division V.P.
StoreStoreManagerManager
DepartmentDepartmentSupervisorSupervisor
FrontlineFrontlineEmployeeEmployee
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Building BlocksOf Structure
• First step in developing structure involves two activities– Specialization- Specific Jobs To Specific
People
– Departmentalization• Group Jobs In Logical Units• Profit Center
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Building BlocksOf Structure
• First step in developing structure involves two activities– Specialization- Specific Jobs To Specific
People– Identifying jobs that needs to be done and
identifying people who will do them– Small VS big organizations
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Building BlocksOf Structure
–Departmentalization• Group Jobs In Logical Units• Profit Center
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Types Of Departmentalization
• Customer
• Product
• Process
• Geographic
• Functional
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Customer Departmentalization
Big BoxBig BoxRetailRetail
Men’s Men’s DepartmentDepartment
Women’sWomen’sDepartmentDepartment
LuggageLuggageDepartmentDepartment
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Product Departmentalization
LucentLucentTechnologyTechnology
WirelessWirelessCommunicationCommunication
OpticalOpticalNetworkingNetworking
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Process Departmentalization
LicenseLicense
TokenToken PicturePicture InformationInformation
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Geographic Departmentalization
LeviLeviStraussStrauss
U.S.U.S. EuropeEurope AsiaAsiaPacificPacific
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Functional Departmentalization
SmallSmallBusinessBusiness
ProductionProductionMarketingMarketing
&&SalesSales
HumanHumanResourcesResources
AccountingAccounting&&
FinanceFinance
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Multiple Forms Of Departmentalization
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Hierarchy For Decisions
• Goal is to figure out how to structure and stabilize the firm so that every one works together
• Assign Tasks– Responsibility– Authority
• Perform Tasks– Delegation– Accountability
• Distribute Authority
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Small Business Delegation Fear
o Employee Can’t Do As Wello Something Will Go Wrongo No Long-Range Plan because you do
everyday fire fightingo Not Up-To-Date On Industry Trends &
Competitive Productso Solution: do not run show independently
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Big BusinessDelegation Fear
o Subordinate Doesn’t Know Job
o Subordinate “Show Manager Up”
o Desire To Retain Control
o Inability To Effectively Delegateo Solution:
o Cannot do everything themselveso Train subordinates if they cant performo Subordinate performs well it will reflect favorably
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Hierarchy For Decisions
• Goal is to figure out how to structure and stabilize the firm so that every one works together
• Assign Tasks– Responsibility– Authority
• Perform Tasks– Delegation– Accountability
• Distribute Authority