Organization behavior.robbins.ch.15

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Foundation of organization Structure

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Organization behavior.robbins.ch.15

  1. 1. Organizational Behavior Robbins and JudgeChapter 15: Foundations of Organization StructurePresented to: Dr. Maha Hafez Presented by:Sameh HassanAhmed MosaedMostafa YounisESLSCA- March 2012
  2. 2. Chapter contents:1-What is organization structure?2-Key elements of an organization’s structure.3-Organization Designs.4-Why structures differs?
  3. 3. 1-What Is Organizational Structure?How job tasks are formally divided,grouped, and coordinated.
  4. 4. 2-Key Elements ofOrganization’s Structure:Work specializationDepartmentalizationChain of commandSpan of controlCentralization anddecentralizationFormalization
  5. 5. *Work Specialization The degree to which tasks in the organization are subdivided into separate jobs Division of Labor: Makes efficient use of employee skills Increases employee skills through repetition Less between-job downtime increases productivity Specialized training is more efficient Allows use of specialized equipment Can create greater economies and efficiencies – but not always…
  6. 6. Work Specialization Economies andDiseconomiesSpecialization can reach a point of •diminishing returnsThen job enlargement gives greater •efficiencies than does specialization
  7. 7. *DepartmentalizationThe basis by which jobs aregrouped togetherGrouping Activities by: Function Product Geography Process Customer
  8. 8. *Chain of Command• Authority – The rights inherent in a managerial position to give orders and to expect the orders to be obeyed• Chain of Command – The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom• Unity of Command – A subordinate should have only one superior to whom he or she is directly responsible
  9. 9. *Span of Control• The number of subordinates a manager• can efficiently and effectively direct – Wide spans of management increase organizational efficiency – Narrow span drawbacks: • Expense of additional layers of management • Increased complexity of vertical communication • Encouragement of overly tight supervision and discouragement of employee autonomy
  10. 10. Contrasting Spans of Control
  11. 11. *Centralization and Decentralization• Centralization – The degree to which decision making is concentrated at a single point in the organization.• Decentralization – The degree to which decision making is spread throughout the organization.
  12. 12. *Formalization• The degree to which jobs within the organization are standardized. – High formalization • Minimum worker discretion in how to get the job done • Many rules and procedures to follow – Low formalization • Job behaviors are nonprogrammed • Employees have maximum discretion
  13. 13. 3-Organization Designs A-Common B-New C-Extreme1-Simple 1-Virtual 1-Organic2-Bureaucracy 2-Boundary-less 2-Mechanistic3-Matrix
  14. 14. A-Common Organization Design: 1-Simple– A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization
  15. 15. A-Common Organization Design2-BureaucracyA structure of highly operating routinetasks achieved through specialization,very formalized rules and regulations,tasks that are grouped into functionaldepartments, centralized authority,narrow spans of control, and decisionmaking that follows the chain ofcommand
  16. 16. A-Common Organization Design:3-Matrix• Matrix Structure – A structure that creates dual lines of authority and combines functional and product departmentalization• Key Elements – Gains the advantages of functional and product departmentalization while avoiding their weaknesses – Facilitates coordination of complex and interdependent activities – Breaks down unity-of-command concept
  17. 17. B-New Organization Design1-Virtual Organization– A small, core organization that outsources its major business functions– Highly centralized with little or no departmentalization • Provides maximum flexibility while concentrating on what the organization does best • Reduced control over key parts of the business
  18. 18. B-New Organization Design 2-Boundary-less Organization*An organization that seeks to eliminate thechain of command, have limitless spans ofcontrol, and replace departments withempowered teams*Eliminate vertical (hierarchical) andhorizontal (departmental) internalboundariesBreakdown external barriers to customersand suppliers
  19. 19. C-Extreme Organization Design
  20. 20. 4-Why Structure differs?1. Strategy – Innovation Strategy • A strategy that emphasizes the introduction of major new products and services • Organic structure best – Cost-minimization Strategy • A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting • Mechanistic model best – Imitation Strategy • A strategy that seeks to move into new products or new markets only after their viability has already been proven • Mixture of the two types of structure
  21. 21. 2. Organizational Size – As organizations grow, they become more mechanistic, more specialized, with more rules and regulations3. Technology – How an organization transfers its inputs into outputs • The more routine the activities, the more mechanistic the structure with greater formalization • Custom activities need an organic structure4. Environment – Institutions or forces outside the organization that potentially affect the organization’s performance – Three key dimensions: capacity, volatility, and complexity
  22. 22. Three-Dimensional Environment Model Volatility Complexity Capacity• Capacity – The degree to which an environment can support growth• Volatility – The degree of instability in the environment• Complexity – The degree of heterogeneity and concentration among environmental elements
  23. 23. Thank You

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