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Organizational Behavior Organizational Structure and Human Resource Policies Organization Design The process of assessing and selecting the structure and formal system of communication, division of labor (work specialization), coordination, control, authority, and responsibility to achieve an organization’s goals. Effective Organization Implements an organization’s strategy in a manner which satisfies the needs of its multiple stakeholders – customers, shareholders, and employees. Must be aligned “fit” with the strategy, situation, and objectives of stakeholders Organizational Alignment “Fit” Strategy Structure – tasks, specialization, authority Systems – processes and procedures Staffing – people and competencies Skills – distinctive competencies Style – leadership and operating Shared Values – guiding principles Organizational Structure How jobs tasks are formally divided, grouped and coordinated Work specialization Departmentalization Chain and Unity of command Span of control Centralization versus decentralization Work Specialization The degree to which tasks are subdivided into separate jobs Efficient use of employee skills Increases employee skills through repetition Less downtime between jobs Allows use of specialized equipment Departmentalization The basis by which jobs are grouped together Function Product Geography Process Customer Chain and Unity of Command The chain of command is the unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom The unity of command states that subordinate should have only one superior to whom he or she is directly responsible Span of Control The number of subordinates a manager can efficiently and effectively direct Narrow span of control Additional layers of management Increased complexity of vertical communication Tight supervision Discouragement of employee autonomy Centralization The degree to which decision making is concentrated at a single point i
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