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Organizational Structure
Chapter 11
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
1. Identify five traditional organizational structures
and the pros and cons of each
2. Describe the product-team structure and explain
why it is a prototype for the more open, agile
organizational structure
3. Explain five ways improvements have been
sought in traditional organizational structures
4. Describe what is meant by agile, virtual
organizations
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Learning Objectives (contd.)
5. Explain how outsourcing can create agile, virtual
organizations, along with its pros and cons
6. Describe boundaryless organizations and why
they are important
7. Explain why organizations of the future need to
be ambidextrous learning organizations and how
this fits into the global economy
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Organizational Structure
Organizational structure refers to the
formalized arrangement of interaction
between and responsibility for the tasks,
people, and resources in an organization
It is most often seen as a chart,
often a pyramidal chart, with
positions or titles and roles in cascading
fashion
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Simple Organizational Structure
A simple organizational structure is one where
there is an owner and a few employees and
where the arrangement of tasks, responsibilities,
and communication is highly informal and
accomplished through direct supervision
This type of structure can be very demanding on
the owner-manager
Most businesses in this country and around the
world are of this type
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