Organizational Structure,IB-CHAPTER8,2,Learning Goals,Explain the purpose of an organizational structure and how organizational structure varies among firms. Explain how accountability can be achieved in an organizational structure. Describe how centralized and decentralized organizational structures differ. Discuss methods firms can use to obtain employee input. Identify methods that can be used to departmentalize tasks.,IB-CHAPTER8,3,Key Terms,autonomy board of directors centralized 集中的 chain of command 控制跨度（企业管理），控制面 compensation committee 薪酬委员会 decentralized 分散的，分权的 departmentalize 使分部门 downsizing 缩减岗位 informal organizational structure 非正式组织结构 inside board members 企业内部董事，内部董事 internal auditor 内部审计员,IB-CHAPTER8,4,Key Terms,intrapreneurship 企业内部创业精神 line organization 分组式组织，直线式组织 line positions 决策岗位 line-and-staff organization 指挥和参谋组织 matrix organization 矩阵组织 nominating committee 提名委员会 organizational structure 组织结构 outside board members 外部董事 span of control 控制跨度（企业管理），管理幅度 staff positions 职员岗位,IB-CHAPTER8,5,Structure and the Strategic Plan,Organizational structure identifies : responsibilities for each job position relationships among those positions Organization chart: shows the interaction among job positions indicates chain of command identifies job position to which each type of employee must report indicates who is responsible for various activities ensures that managers make decisions that maximize firms value rather than serve their own interests,IB-CHAPTER8,6,Organization Chart,Exhibit 8.1,IB-CHAPTER8,7,Varying Structures,Span of control: the number of employees managed by each manager, determined by top management. few employees narrow span numerous employees wide span Organizational height: the number of management layers from the bottom to the top. tall organization many layers short/flat organization very few layers Use of Line versus staff positions,IB-CHAPTER8,8,Narrow & Wide Span of Control,Exhibit 8.3,IB-CHAPTER8,9,Line versus Staff Positions,Line positions: job positions established to make decisions that achieve specific business goals Staff Positions: job positions established to support the efforts of line positions Line organization: an organizational structure that contains only line positions.,IB-CHAPTER8,10,Line versus Staff Positions,line organization - the organizational structure of activities contributing directly to the organizations output Line-and-staff organization: an organizational structure that includes both line and staff positions and assigns authority from higher-level management to employees.,IB-CHAPTER8,11,Line versus Staff,IB-CHAPTER8,12,Board of Directors,a set of executives responsible for monitoring the activities of the firms president and other high-level managers selected by shareholders Inside/outside board members Auditor,IB-CHAPTER8,13,Board Members of Small Firms,IB-CHAPTER8,14,Board Committees,Audit Committee,Compensation Committee,Nominating Committee,IB-CHAPTER8,15,Sarbanes-Oxley Act,Database,Accuracy,Detect Errors,Risk,Speed,Sign Off,Consistent,requires publicly traded firms to establish processes for internal control that enable them to more accurately monitor their financial performance over time, by doing the following:,IB-CHAPTER8,16,Centralized - Decentralized,IBM management training seminar,Centralized: most authority is held by the high-level managers Decentralized: authority is spread among several divisions or managers The trend is toward decentralization, due to its potential advantages,IB-CHAPTER8,17,Degree of Decentralization,Skill Level,Decentralization,Centralization,depends upon the skills of employees in the firm The higher the skill level, the more decentralization might be appropriate.,IB-CHAPTER8,18,Effect of Downsizing on Span of Control,Exhibit 8.4,IB-CHAPTER8,19,Structure and Employee Input,Matrix organization Intrapreneurship Informal organizational structure,IB-CHAPTER8,20,Matrix Organization,enables various parts of the firm to interact to focus on specific projects.,IB-CHAPTER8,21,Intrapreneurship,the assignment of particular employees of a firm to generate ideas, as if they were entrepreneurs running their own firms.,difference: they are employees, not owners of their own firms.,Created by intrapreneurs in 3M Company,IB-CHAPTER8,22,Informal Organization,an informal communication network among a firms employees called “grapevine”, interaction over time Advantages friendships allows information to flow Disadvantages incorrect or unfavorable information. employee morale can be affected.,IB-CHAPTER8,23,Departmentalizing Tasks,Assign tasks and responsibilities to different departments By employee functions By types of product By location By type of customer Activity: Rough Draft your Organizational Chart for YOUR company,IB-CHAPTER8,24,Departmentalize by Function,IB-CHAPTER8,25,Departmentalize by Product,IB-CHAPTER8,26,Function and Product,IB-CHAPTER8,27,By Location and Customer,Location,Custom