1 Identify the factors that influence managers' choice of an organizational structure.

1. Designing Organizational Structure
   Organizing is the process of establishing working relationships among employees. Organizational structure is the formal system of task and job reporting relationships. Organizational design is the creation of the tasks and job relationships.
   1. The organizational environment – the faster the external environment is changing, the more difficult is it for managers to find scarce resources.
   2. Strategy – different organizational strategies require different organizational structures.
   3. Technology – the skills, knowledge, tools, machines, and equipment that are used by the organization.
      1. Task variety – the number of new situations a manager encounters in performing the job.
      2. Task analyzability – the degree to which programmed decisions are available to managers.
      3. Small-batch technology – produces small amounts of customized products.
      4. Mass-production technology – uses automated machines the perform the same operations over and over again.
      5. Continuous-process technology – produces products by automated machines that work in sequence.
      6. Information technology – IT can allow new tasks and job-reporting relationships.
   4. Human resources – the people who work for the organization

2 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

2. Grouping Tasks into Jobs: Job Design
   Job design is the process of deciding how to divide tasks into specific jobs.
   1. Job enlargement and job enrichment
      1. Job enlargement – increasing the number of tasks in a job
      2. Job enrichment – increasing the worker's responsibility for managing his or her own job.
   2. The job characteristics model of Hackman and Oldham – how motivating is the job itself?
      1. Skill variety – the extent to which the job requires a wide range of different skills or knowledge.
      2. Task identity – the extent to which the worker must do all of the tasks of the job.
      3. Task significance – the degree to which the job is meaningful.
      4. Autonomy – the degree to which the worker can schedule tasks and decide how to do them.
      5. Feedback – the extent to which the job gives information to the worker about how well the job is being performed.

3 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

3. Grouping Jobs into Functions and Divisions
   1. Functional structure – all the departments used by the organization.
   2. Divisional structures: product, market, and geographic
      1. Product structure – each product line or business is in its own division with its own strategy.
      2. Geographic structure – assigning divisions to specific geographic regions.
      3. Market structure – grouping divisions by the type of customer that they serve.
   3. Matrix and product team designs
      1. Matrix structure—workers are grouped simultaneously by function and by product.
      2. Product team structure – workers are permanently assigned to a cross-functional team; there is no dual reporting relationship.
   4. Hybrid structure – different divisions or businesses choose different structures.
4. Coordinating functions and divisions
   1. Allocating authority – the power a manager has to make decisions and to allocate resources.
      1. Span of control – the number of subordinates who report to a manager.
      2. Line manager – a manager who is in the direct chain of command who has formal authority over subordinates.
      3. Staff manager – has responsibility for a function (e.g. finance).
   2. Tall and flat organizations
      1. Tall organization – has many levels of authority
      2. Flat organization – few levels of authority

4 Explain why there is a need to both centralize and decentralize authority.

3. Centralization and decentralization of authority – centralization means that top management retains control of decisions, while decentralization means that decision-making authority is "pushed down" the organization to lower-level managers who are closer to the customer.

5 Explain why managers must coordinate and integrate among jobs, functions, and divisions as an organization grows.

4. Types of integrating mechanisms – used to coordinate the work of managers
   1. Direct contact – personal contact between managers
   2. Liaison roles – assigning coordinating responsibility to a manager
   3. Task forces – managers from different functional areas are assigned to work on a mutual problem.
   4. Cross-functional teams – managers from different functional areas work together.
   5. Integrating roles – a role whose single function is to improve coordination.
   6. Matrix structure – two-boss managers work on project teams.

6 Explain why managers who seek new ways to increase efficiency and effectiveness are using strategic alliances and network structures.

5. Strategic Alliances, B2B Network Structures, and IT
   1. Strategic alliance – two or more companies agree to share resources in order to market a product.
   2. Network structure – a series of global alliances with suppliers, manufacturers, and distributors to market a product.