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Chapter
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Organization Structure: Departmentation
1. The basic patterns of traditional departmentation and their advantages and disadvantages. 2. Matrix organizations. 3. Strategic business units. 4. Organization structures for global enterprises. 5. The virtual and boundaryless organizations. 6. That there is no single best pattern of departmentation.
2008 Weihrich and Cannice
Matrix Organization
The combining of functional and project or product patterns of departmentation in the same organization structure.
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Distinct little businesses set up as units in a larger company to ensure that a certain product or product line is promoted and handled as though it were an independent business.
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Organization structures differ greatly for enterprises operating in the global environment. The kind of structure depends on a variety of factors, such as the degree of international orientation and commitment.
2008 Weihrich and Cannice
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A rather loose concept of a group of independent firms or people that are connected often through information technology. These firms may be suppliers, customers, and even competing companies.
2008 Weihrich and Cannice
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Boundaryless Organization
Jack Welch, former CEO at GE (General Electric), stated his vision for the company as a boundaryless company, an open, antiparochial environment, friendly toward the seeking and sharing of new ideas, regardless of their origin. The purpose was to remove barriers between the various departments as well as between domestic and international operations.
2008 Weihrich and Cannice
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Departmentation by enterprise function Departmentation by territory or geography Departmentation by customer group Departmentation by product
Matrix organization (or grid, or project, or product) Strategic business unit Organization structures for global enterprises Virtual organization Boundaryless organization
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