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Module 1: Organizational Structure Change

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Organizational Structure
Module Summary

MODULE SUMMARY

In this module you studied the following:

Organizational structure refers to how individual and team work within an organization are coordinated.

Centralization is the degree to which decision-making authority is concentrated at higher levels in an organization.

Formalization is the extent to which an organization’s policies, procedures, job descriptions, and rules are written and explicitly articulated.

Organizational structures differ in terms of departmentalization, which is broadly categorized as either functional or divisional.

The different elements making up organizational structures in the form of formalization, centralization, number of levels in the hierarchy, and departmentalization often coexist.

Matrix organizations have a design that combines a traditional functional structure with a product structure.

Boundaryless organizations are organizations that eliminates traditional barriers between departments as well as barriers between the organization and the external environment.

A learning organization is one whose design actively seeks to acquire knowledge and change behavior as a result of the newly acquired knowledge.

Organizational change is the movement of an organization from one state of affairs to another.

Organizational change is often a response to changes to the environment.

Sometimes change is motivated by rapid developments in technology.

Changing an organization is often essential for a company to remain competitive. Failure to change may influence the ability of a company to survive.

To be successful, any change attempt will need to overcome resistance on the part of employees.

People resist change for a variety of reasons including: disrupted habits, personality, feelings of uncertainty, and he personal impact of change.

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