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Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
Management (Organization Design & Its Perspective)
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Management (Organization Design & Its Perspective)

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Organization Design & Its Perspective

Organization Design & Its Perspective

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  • 1. Organization Design & Its Perspective
  • 2. Outline: Identify the basic nature of organization design. Identify the two basic universal perspectives on organization design.  Bureaucratic Model  Behavioral Model
  • 3. The Nature of Organization Design:  Organization Design:  The overall set of structural elements and the relationships among those elements used to manage the total organization.  A means to implement strategies and plans to achieve organizational goals.  Organization Design Concepts:  Organizations are not designed and then left intact. Organizations are in a continuous state of change.  Organization design for larger organizations is extremely complex and has many nuances and variations.
  • 4. Universal Perspectives on Organization Design:  Bureaucratic Model (Max Weber)  According to Max Weber, a German sociologist, a bureaucracy is defined as an organization founded on a legitimate and formal system of authority.  A logical, rational, and efficient organization design based on a legitimate and formal system of authority.
  • 5. Characteristics:  Adopt a division of labor with each position filled by an expert.  create a hierarchy of position so that the scalar chain of command runs from top to bottom in the organization.  Establish a hierarchy of positions, which creates a chain of command runs from top to bottom in the organization.  All managers should conduct business in an impersonal manner, maintaining an appropriate social distance from their subordinates.  Establish specific personnel policies and practices to ensure that employment and promotion in the organization is based on expertise and performance.
  • 6.  Advantages  Efficiency in function due to well-defined practices and procedures.  Organizational rules prevent favoritism.  Recognition of and requirement for expertise stresses the value of an organization’s employees.  Disadvantages  Organizational inflexibility and rigidity due to rules and procedures.  Neglects the social and human processes within the organization.  Belief in “one best way” to design an organization does not apply to all organizations and their environments.
  • 7. Behavioral Model: Likert System  Renesis Likert  Organizations that pay attention to work groups and interpersonal processes are more effective than bureaucratic organizations.  Universal approach that recognized the weakness and limitations of the rational and mechanistic characteristics of bureaucratic model.
  • 8. Likert’s System 4 Organization Rensis Likert discovered critical relationships between organization design and effectiveness. His research dealt with eight characteristics of organizations-  The leadership process  The motivation process  The communication process  The interaction process  The decision process  The goal setting process  The control process  Performance goals
  • 9.  Likert concluded that the managers should adopt what he called as system 4 approach to the organization design.  System 4 was a behavioral approach that emphasized on supporting relationships, practiced group decision making, and established high- performance goals.  Strength  Emphasis on behavioral process of organization.  Weakness • This approach was founded on the premise that there is only “one best way” to design organizations, while it seems to be abundantly clear that there is no best way.
  • 10. Thank You!!!!

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