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UA BNAD 302 - Types of Organizational Structures
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BNAD 302 10/15/13 Lecture 12Outline of Last Lecture I. Implementation principles of evidence based decision makingII. What makes it hard to be evidence basedIII. AnalyticsIV. Decision making stylesV. What managers need to know about groups and decision makingVI. What is organizational culture?VII. How employees learn cultureOutline of Current LectureI. Cultures for enhancing economic performance: three perspectivesII. Basic types of organizational structuresCurrent LectureI. Cultures for enhancing economic performance: three perspectivesa. strength, fit, adaptiveb. The process of cultural changei. Formal Statementsii. Slogans and sayingsiii. Stories, legends and mythsiv. Leader reaction to crisisv. Role modeling, training and coachingvi. Physical designvii. Rewards, titles, promotions and bonusesviii. Organizational goals and performance criteriaix. Measurable and controllable activitiesx. Organizational structurexi. Organizational systems and proceduresc. Organizationi. A system of consciously coordinated activities or forces of two or more peopleii. For profit, nonprofit, mutual-benefitd. Common elements of organizations1. Common purpose2. Coordinated effortThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.3. Division of labor4. Hierarchy of authority5. Span of control6. Authority, responsibility, and delegation7. Centralization versus decentralization of authoritye. Line and staffi. Board of Directors > CEO > President > Executive administrative director and executive medical directorii. Indirect reporting: Strategic Planning Advisor, Legal Counsel, Cost-Containment StaffII. Basic types of organizational structuresa. Simple Structurei. Authority is centralized in a single person with few rules and low work specializationb. Functional Structurei. People with similar occupational specialties are put together in formal groups1. e.g: (Marketing) (Finance) (Production) (Human Resources)c. Divisional Structurei. People with diverse occupational specialties are put together in formal groups by similar products, customers or geographic regionsd. Matrix Structurei. An organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontale. Horizontal designi. Teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared task by breaking down internalboundariesf. Hollow Structurei. The organization has a central core of key functions and outsources other functions to vendor who can do them cheaper or fasterg. Modular Structurei. Firm assembles product chunksh. Mechanistic Organizationsi. Centralized hierarchy of authorityii. Many rules and proceduresiii. Specialized tasksiv. Formalized communicationv. Few teams or task forcesvi. Narrow span of control; taller structuresi. Organic Organizationsi. Decentralized hierarchy of authorityii. Few rules and proceduresiii. Shared tasksj. Differentiationi. Tendency of the parts of an organization to disperse and fragmentk. Integrationi. Tendency of the parts of an organization to draw together to achieve a common purposel. Stages in the life of an organizationi. Stage 1: Birth Stage – the organization is createdii. Stage 2: Youth Stage – growth and expansioniii. Stage 3: Midlife Stage – period of growth evolving into stabilityiv. Stage 4: Maturity Stage – organization becomes very bureaucratic, large and


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