A informative and exciting look at the basic organizational design of businesses

1. Group One BASIC ORGANIZATION DESIGNS V

2. CHAPTER’S OVERVIEW

4. What determines the type of organizational structure/its contingencies

5. Application of Organization Structures

27. Foundations of Organization Structureand Its Key Components

29. Organizational Design The SIX Elements of Organizational Structure LG1 The process in which managers develop or change their organization’s structure Organisational structure- A formal system of working relationships that both separates tasks and integrates tasks

30. The SIX Elements of Organizational Structure LG1 Specialization/Division of Labour Chain of Command Span of Control Authority and Responsibility Centralization versus Decentralization Departmentalization

31. Specialization The process of identifying a particular tasks and assigning them to individuals or work groups who have been trained to do them/best suited for them Candidate Service Team Client Service Team

37. The SIX Elements of Organizational Structure LG1 Specialization/Division of Labour Chain of Command Span of Control Authority and Responsibility Centralization versus Decentralization Departmentalization

38. Chain of command The continuous line of authority that extends from the highest levels in an organization to the lowest level and clarifies who reports to whom Unity of Command

39. The SIX Elements of Organizational Structure LG1 Specialization/Division of Labour Chain of Command Span of Control Authority and Responsibility Centralization versus Decentralization Departmentalization

40. Span of Control The number of subordinates a manager can direct efficiently and effectively

42. The SIX Elements of Organizational Structure LG1 Specialization/Division of Labour Chain of Command Span of Control Authority and Responsibility Centralization versus Decentralization Departmentalization

43. Authority and Responsibility The rights inherent in the managerial position to give orders and expect them to be obeyed Or The right to decide and to act Responsibility is the obligation to perform assigned activities Spiderman: With great power comes……… Power vs. Authority

44. Line authority Staff authority Line authority

46. Line authority Staff authority Line authority

47. Types of Power Coercive Reward Legitimate Expert Referent

48. The SIX Elements of Organizational Structure LG1 Specialization/Division of Labour Chain of Command Span of Control Authority and Responsibility Centralization versus Decentralization Departmentalization

49. Centralization versus Decentralization A management approach that is characterised by authority concentrated at the top of an organization or department A management approach that is characterized by a high degree of authority being delegated throughout the organization to middle and lower level managers

50. Centralization

51. Contemporary Management Approach DECENTRALIZATION

52. ?

54. The SIX Elements of Organizational Structure LG1 Specialization/Division of Labour Chain of Command Span of Control Authority and Responsibility Centralization versus Decentralization Departmentalization

55. DEPARTMENTALIZATION THE BUILDING BLOCK OF THE ORGANIZATION The subdividing of work and assigning it to specialized groups within an organization FORMS OF DEPARTMENTALIZATION Functional- grouped according to their expertise and resources they draw on/function performed Product- grouped by products produced Customer-grouped by activities or needs of common customers Geographic/Place-grouped according to location/territories served Process-grouped according to work/customer flow

56. DEPARTMENTALIZATION BY FUNCTION CUSTOMER CUSTOMER

57. PRODUCT PROCESSES

58. The SIX Elements of Organizational Structure LG1 Specialization/Division of Labour Chain of Command Span of Control Authority and Responsibility Centralization versus Decentralization Departmentalization

59. RECAP/SUMMARIZE Specialization Chain of Command Span of Control Authority & Responsibility Centralization versus Decentralization Departmentalization

60. What determines the type of organizational structure/its contingencies?

62. Contrast mechanistic and organic organizations Mechanistic organisation is a structure that Is high in specialization, formulation and centralization Organic organisation is a structure that is low in specialization, formulation and centralization.

63. Mechanistic It is RIGID - close supervision Bureaucratic – authority is centralized Most appropriate for Stable Environment

64. Organic Fluid and flexible- tasks and roles are left ambiguous to encourage innovation and quick response Authority is decentralized Most appropriate for unstable environments

65. VS

66. The effect of strategy, size, technology, and environment on the organization structures As strategies move from single product, to vertical integration, to product diversification, structure must move from organic to mechanistic. As size increases, so to do specialization, formalization, and horizontal and vertical differentiation. Once an organization has 2000 or more employees its fairly mechanistic.

67. Divisional VS. Functional Structures

68. Functional Structure takes advantage of specialization and provides economies of scale by allowing people with common skills to work together. Functions are simply groups based on the expertise of individuals

69. FUNCTIONAL FUNCTIONAL

70. Divisional Structure is composed of autonomous units or divisions, with managers having full responsibility for a product or service DIVISIONS FUNCTIONS Divisional structures are simply separate business units based on products, location or processes, within which still contains functional structures

72. MATRIX STRUCTURE Simultaneously groups people and resources based on functions and product. Function Product

73. Boundaryless organization and what elements have contributed to its development An organization where members are linked by computers, fax, computer aided design systems and video teleconferencing and who rarely see each other face to face.

76. LEARNING ORGANIZATIONS What is a learning organization? This is an organization that has developed the capacity to continuously adapt and change because all members take an active role in identifying and resolving work-related issues.

77. TYPES OF ORGANIZATIONAL LEARNING Single-loop learning is localized learning within departments or sub units of the organization but may have few or if any implications for the entire organization and policies and rules remain unchanged. 2. Double-loop learning occurs when a discovery or insight causes not only localized change but a general revision in corporate policy or strategy that takes into account this new insight. 3. Triple-loop learning goes one step further by causing management to rethink the entire business paradigm and make organizational changes based on the new insight.

78. Characteristics of a Learning Organization

80. It is also called corporate culture and it is the firm’s shared values, beliefs, traditions, philosophies, rules and heroes.

82. How Can Cultures Be Assessed? Ten (10) Characteristics Of Organizational Culture Control Unit Integration Member Identity Group Emphasis People Focus Means-end Orientation Open-system Focus Conflict Tolerance Risk Tolerance Reward Criteria

83. Characteristics of Organizational Culture Member identity The degree to which employees identify with the organization as a whole rather than with their type of job or field of professional expertise

84. Characteristics of Organizational Culture Group emphasis The degree to which work activities are organized around groups rather than individuals

85. Characteristics of Organizational Culture People focus The degree to which management decisions take into consideration the effects of outcomes on people within the organization

86. Characteristics of Organizational Culture Unit integration The degree to which units in the organization are encouraged to operate in a coordinated or inter-dependent manner

87. Characteristics of Organizational Culture Control The degree to which rules, regulations and direct supervisions are used to oversee and control employees behavior

88. Characteristics of Organizational Culture Risk tolerance The degree to which employees are encouraged to be aggressive, innovative and risk seeking

89. Characteristics of Organizational Culture Reward criteria The degree to which rewards such as salary increases and promotion are allocated on employees performance criteria in contrast to seniority, favoritism or other non-performance factors

90. Characteristics of Organizational Culture Conflict Tolerance The Degree To Which Employees Are Encouraged To Air Conflicts And Criticisms Openly

91. Characteristics of Organizational Culture Means-end orientation The degree to which management focuses on results of outcomes rather than on the techniques and processes used to achieve those outcomes

92. Characteristics of Organizational Culture Open-system focus The degree to which the organization monitors and responds to changes in the external environment

93. Thank you !!!!