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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 11-3 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 11-4 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 11-5 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 11-6
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