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Chapter Three

Chapter ThreeFundamentals ofOrganization StructureA Sample Organization ChartChiefAccountantBudgetAnalystVice PresidentFianancePlantSuperintendentMain tenanceSuperintendentVice PresidentManufacturingTrainingSpecialist BenefitsAdministratorDirectorHuman ResourcesCEOThe Relationship of Organization Design to Efficiency vs. Learning OutcomesHorizontal OrganizationDesigned for LearningVertical OrganizationDesigned for EfficiencyDominantStructuralApproachHori zontal structure is dominant Shared tasks, empowerment Relaxed hierarchy, few rules Horizontal, face-to-face communication Many teams and task forces Decentralized decision makingVertical structure is dominant Specialized tasks Strict hierarchy, many rules Vertical communication and reporting systems Few teams.

Matrix Organization Structure Source: Adapted from Robert Duncan, “What Is the Right Organization Structure? Decision Tree Analysis Provides the Answer,”Organizational Dynamics (Winter 1979): 429. Matrix Structure for Worldwide Steel Company President Industrial Relations Vice President Mfg. Services Vice President Finance Vice President ...

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