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MGMT 307 Group Project
Organizational Structure and Designs with Case Study: QUALCOMM
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Table of Contents
Section 1: Introduction
Section 2: Six Key Elements in Organizational Design
Section 3: Types of Organizational Designs
Section 4: QUALCOMM: Brief History and Achievements
Section 5: QUALCOMM's Organizational Structure
Section 6: Evaluate and Analyze QUALCOMM's Organizational Structure and Design
Section 7: Conclusion -- Is QUALCOMM traditional or contemporary?
Section 8: Works Cited
Six Key Elements in Organizational Design

Organizational design is engaged when managers develop or change an organization's structure. Organizational Design is a process that involves decisions about the following six key elements:

This section is presented by:
Claudia Gardea
I. Work Specialization
Describes the degree to which tasks in an organization are divided into separate jobs. The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.


II. Departmentalization
It is the basis by which jobs are grouped together. For instance every organization has its own specific way of classifying and grouping work activities.

There are five common forms of departmentalization:
  1. Functional Departmentalization. As shown in the Figure 2-1, it groups jobs by functions performed. It can be used in all kinds of organizations; it depends on the goals each of them wants to achieve.

    Figure 2-1Functional Departmentalization example


    Different aspects on this type of departmentalization:
    Positive Aspects Negative Aspects
    • Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations
    • Coordination within functional area
    • In-depth specialization
    • Poor communication across functional areas
    • Limited view of organizational goals


  2. Product Departmentalization. It groups jobs by product line. Each manager is responsible of an area within the organization depending of his/her specialization

    Figure 2: Product Departmentalization example
    Source: Bombardier Annual Report


    Different aspects on this type of departmentalization:
    Positive Aspects Negative Aspects
    • Allows specialization in particular products and services
    • Managers can become experts in their industry
    • Closer to customers
    • Duplication of functions
    • Limited view of organizational goals


  3. Geographical Departmentalization. It groups jobs on the basis of territory or geography.

    Figure 2-3: Geographical Departmentalization example


    Different aspects on this type of departmentalization:
    Positive Aspects Negative Aspects
    • More effective and efficient handling of specific regional issues that arise
    • Serve needs of unique geographic markets better
    • Duplication of functions
    • Can feel isolated from other organizational areas


  4. Process Departmentalization. It groups on the basis of product or customer flow.

    Figure 2-4: Process Departmentalization example


    Different aspects on this type of departmentalization:
    Positive Aspects Negative Aspects
    • More efficient flow of work activities
    • Can only be used with certain types of products


  5. Customer Departmentalization. It groups jobs on the basis of common customers

    Figure 2-5: Customer Departmentalization example


    Different aspects on this type of departmentalization:
    Positive Aspects Negative Aspects
    • Customers' needs and problems can be met by specialists
    • Duplication of functions
    • Limited view of organizational goals

III. Chain of command
It is defined as a continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. There are three important concepts attached to this theory:
  • Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.
  • Responsibility: The obligation to perform any assigned duties.
  • Unity of command: The management principle that each person should report to only one manager.

IV. Span of Control
It is important to a large degree because it determines the number of levels and managers an organization has. Also, determines the number of employees a manager can efficiently and effectively manage.


V. Centralization and Decentralization

More Centralization More Decentralization
  • Environment is stable
  • Lower-level managers are not as capable or experienced at making decisions as upper-level managers.
  • Lower-level managers do not want to have say in decisions
  • Decisions are significant.
  • Organization is facing a crisis or the risk of company failure.
  • Company is large.
  • Effective implementation of company strategies depends on managers retaining say over what happens.
  • Environment is complex, uncertain.
  • Lower-level managers are capable and experienced at making decisions.
  • Lower-level managers want a voice in decisions.
  • Decisions are relatively minor.
  • Corporate culture is open to allowing managers to have a say in what happens.
  • Company is geographically dispersed.
  • Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions


VI. Formalization
It refers to the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.


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