Organization Design
& Its Perspective
Outline:
Identify the basic nature of organization
design.
Identify the two basic universal perspectives
on organization...
The Nature of Organization Design:
 Organization Design:
 The overall set of structural elements and the relationships a...
Universal Perspectives on
Organization Design:
 Bureaucratic Model (Max Weber)
 According to Max Weber, a German sociolo...
Characteristics:
 Adopt a division of labor with each position filled by an expert.
 create a hierarchy of position so t...
 Advantages
 Efficiency in function due to well-defined practices and procedures.
 Organizational rules prevent favorit...
Behavioral Model: Likert System
 Renesis Likert
 Organizations that pay attention to work groups and interpersonal
proce...
Likert’s System 4 Organization
Rensis Likert discovered critical relationships between organization
design and effectivene...
 Likert concluded that the managers should adopt what he called as
system 4 approach to the organization design.
 System...
Thank You!!!!
Management (Organization Design & Its Perspective)
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Management (Organization Design & Its Perspective)

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Organization Design & Its Perspective

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Management (Organization Design & Its Perspective)

  1. 1. Organization Design & Its Perspective
  2. 2. Outline: Identify the basic nature of organization design. Identify the two basic universal perspectives on organization design.  Bureaucratic Model  Behavioral Model
  3. 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. 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. 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. 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. 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. 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. 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. 10. Thank You!!!!
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