1. PART III: Organizing 5

2. Learning Outcomes After this class, I will be able to:

16. Economies and Diseconomies of Work Specialization Exhibit 5.1

18. Chain of Command Exhibit 5.2

21. Line Versus Staff Authority Exhibit 5.3

22. Authority Versus Power: Authority Exhibit 5.4a

23. Authority Versus Power: Power Exhibit 5.4b

24. Types of Power Coercive power Power based on fear. Reward power Power based on the ability to distribute something that others value. Legitimate power Power based on one’s position in the formal hierarchy. Expert power Power based on one’s expertise, special skill, or knowledge. Referent power Power based on identification with a person who has desirable resources or personal traits. Exhibit 5.5

26. Types of Departmentalization Functional Product Customer Geographic Process Exhibit 5.6

35. Functional Structure Exhibit 5.8

36. Divisional Structure Exhibit 5.9

38. Sample Matrix Structure Exhibit 5.10

39. Virtual Organization

41. Characteristics of a Learning Organization Exhibit 5.11 Source: Based on P. M. Senge, The Fifth Discipline: The Art and Practice of Learning Organizations (New York: Doubleday, 1990); and R. M. Hodgetts, F. Luthans, and S. M. Lee, “New Paradigm Organizations: From Total Quality to Learning to World Class.” Organizational Dynamics (Winter 1994), pp. 4–19.