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Describe six key elements in organizational designContrast mechanistic and organic structuresDiscuss the contingency factors that favor either the mechanistic model or the organic model of organizational designDescribe traditional organizational designsDesigning Organizational StructureOrganizing - arranging and structuring work to accomplish an organization’s goals.Organizational Structure - the formal arrangement of jobs within an organization.Organizational Design - a process involving decisions about six key elements:Work specializationDepartmentalizationChain of commandSpan of controlCentralization and decentralizationFormalizationExhibit 10-1: Purposes of OrganizingOrganizational StructureWork SpecializationThe degree to which tasks in the organization are divided into separate jobs with each step completed by a different person.Overspecialization can result in human diseconomies such as boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.Exhibit 10-2: Economies and Diseconomies of Work SpecializationDepartmentalization by TypeProcess Grouping jobs on the basis of product or customer flowCustomerGrouping jobs by type of customer and needsFunctional Grouping jobs by functions performedProductGrouping jobs by product lineGeographicalGrouping jobs on the basis of territory or geographyOrganizational Structure (cont.)Chain of Command - the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization—clarifies who reports to whom.Organizational Structure (cont.)Authority - the rights inherent in a managerial position to tell people what to do and to expect them to do it.Responsibility - the obligation or expectation to perform.Unity of Command - the concept that a person should have one boss and should report only to that person.Exhibit 10-3: The Five CommonForms of DepartmentalizationExhibit 10-3: The Five Common Forms of Departmentalization (cont.)Exhibit 10-3: The Five Comm
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