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    Organizational Structure and the Decision-Making Process

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    Q 1. What is the relationship between organizational structure and the decision-making process? Provide examples. Document your ideas with Peer Reviewed articles that you have read.

    Please use this as a reference with one quote from the article:

    Fredrickson, J. W. (1986). The Strategic Decision Process and Organizational Structure. Academy Of Management Review, 11(2), 280-297. doi:10.5465/AMR.1986.4283101

    Q 2 Provide examples of when an organization would consider organizational change. (Exhibit 8-10 Ch. 8, see below) What challenges to cultural awareness might you encounter when attempting to drive organizational change? Document your ideas with Peer Reviewed articles(articles) that you have read.

    EXHIBIT 8-10 When Is Change Needed?40(below)
    ? A change in the size of the corporation?due to growth, consolidation, or reduction
    ? A change in key individuals?which may alter management objectives, interests,
    and abilities
    ? A failure to meet goals, capitalize on opportunities, or be innovative
    ? An inability to get things done on time
    ? A consistently overworked top management that spends excessive hours on the job
    ? A belief that costs are extravagant or that budgets are not being met
    ? Morale problems
    ? Lengthy hierarchies that inhibit the exercise of strategic control
    ? Planning that has become increasingly staff-driven and is thus divorced from line
    ? Innovation that is stifled by too much administration and monitoring of details
    ? Uniform solutions that are applied to nonuniform situations. The extreme opposite of this
    condition?when things that should or could function in a routine manner do not?should
    also be heeded as a warning. In other words, management by exception has replaced
    standard operating procedures
    The following are a few specific indicators of international organizational malaise:
    ? A shift in the operational scope?perhaps from directing export activities to controlling
    overseas manufacturing and marketing units, a change in the size of operations on a
    country, regional, or worldwide basis, or failure of foreign operations to grow in
    accordance with plans and expectations.
    ? Clashes among divisions, subsidiaries, or individuals over territories or customers in
    the field
    ? Divisive conflicts between overseas units and domestic division staff or corporate staff
    ? Instances wherein centralization leads to a flood of detailed data that is neither fully
    understood nor properly used by headquarters
    ? Duplication of administrative personnel and services
    ? Underutilization of overseas manufacturing or distribution facilities
    ? Duplication of sales offices and specialized sales account executives
    ? Proliferation of relatively small legal entities or operating units within a country
    or geographic area
    ? An increase in overseas customer service complaints
    ? Breakdowns in communications within and among organizations
    ? Unclear lines of reporting and dotted-line relationships, and ill-defined executive

    Please use this article as a reference with a quote.

    Van de Ven, A. H., & Sun, K. (2011). Breakdowns in Implementing Models of Organization Change. Academy Of Management Perspectives, 25(3), 58-74. doi:10.5465/AMP.2011.63886530.

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    Question 1
    The theory that a firm's organizational structure has a direct impact on its decision making process is young relative to other human resource and strategic management dogmas. According to the study of Fredrickson (1986) on the synthesis and integration of various pervious works on the relationship of structure and strategic process, reveals that before the importance of this relationship became obvious and made part of competitive advantages of a firm, how an organization organizes itself and its units was more of reactionary. This means that changes in its operating environment has to happen first, before the company realigns its structure to correspond with these changes such as "major increases in unit volume" (fredrickson, 1986, p. 281.
    Fredrickson goes on to specifically link the general dimensions of structure - centralization, formalization ...

    Solution Summary

    The solution discusses the relationship between the organizational structure and the decision-making process