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Organizational Behavior - Session7
 

Organizational Behavior - Session7

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Organizational Behavior

Organizational Behavior

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    Organizational Behavior - Session7 Organizational Behavior - Session7 Presentation Transcript

    • Foundations of Organizational Structure Lecturer: Do Tien Long 09 04 51 54 46 dotienlong_mc@yahoo.com.vn Organisational Behavior, Do Tien Long
    • What Is Organizational Structure? What Is Organizational Structure? Organizational Structure How job tasks are formally divided, grouped, and Key Elements: Key Elements: coordinated. • • Work specialization Work specialization • • Departmentalization Departmentalization • • Chain of command Chain of command • • Span of control Span of control • • Centralization and Centralization and decentralization decentralization • • Formalization Formalization Organisational Behavior, Do Tien Long
    • Key Design Questions and Answers for Key Design Questions and Answers for Designing the Proper Organization Structure Designing the Proper Organization Structure The Key Question The Answer Is Provided By 1. To what degree are articles Work specialization subdivided into separate jobs? 2. On what basis will jobs be grouped Departmentalization together? 3. To whom do individuals and groups Chain of command report? 4. How many individuals can a manager Span of control efficiently and effectively direct? 5. Where does decision-making Centralization authority lie? and decentralization 6. To what degree will there be rules Formalization and regulations to direct employees and managers? E X H I B I T 16–1 E X H I B I T 16–1 Organisational Behavior, Do Tien Long
    • What Is Organizational Structure? (cont’d) What Is Organizational Structure? (cont’d) Work Specialization The degree to which tasks in the organization are subdivided into separate jobs. Division of labor: Division of labor: • • Makes efficient use of employee skills Makes efficient use of employee skills • • Increases employee skills through repetition Increases employee skills through repetition • • Less between-job downtime increases productivity Less between-job downtime increases productivity • • Specialized training is more efficient Specialized training is more efficient • • Allows use of specialized equipment Allows use of specialized equipment Organisational Behavior, Do Tien Long
    • Economies and Diseconomies of Work Economies and Diseconomies of Work Specialization Specialization E X H I B I T 16–2 E X H I B I T 16–2 Organisational Behavior, Do Tien Long
    • What Is Organizational Structure? (cont’d) What Is Organizational Structure? (cont’d) Departmentalization The basis by which jobs are grouped together. Grouping Activities By: Grouping Activities By: •• Function Function •• Product Product •• Geography Geography •• Process Process •• Customer Customer Organisational Behavior, Do Tien Long
    • What Is Organizational Structure? (cont’d) What Is Organizational Structure? (cont’d) 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. Organisational Behavior, Do Tien Long
    • What Is Organizational Structure? (cont’d) What Is Organizational Structure? (cont’d) Span of Control The number of subordinates a manager can efficiently and effectively direct. Concept: Concept: Wider spans of management increase organizational Wider spans of management increase organizational efficiency. efficiency. Narrow Span Drawbacks: Narrow Span Drawbacks: • •Expense of additional layers of management. Expense of additional layers of management. • •Increased complexity of vertical communication. Increased complexity of vertical communication. • •Encouragement of overly tight supervision and Encouragement of overly tight supervision and discouragement of employee autonomy. discouragement of employee autonomy. Organisational Behavior, Do Tien Long
    • Contrasting Spans of Control Contrasting Spans of Control E X H I B I T 16–3 E X H I B I T 16–3 Organisational Behavior, Do Tien Long
    • What Is Organizational Structure? (cont’d) What Is Organizational Structure? (cont’d) 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. Formalization The degree to which jobs within the organization are standardized. Organisational Behavior, Do Tien Long
    • Common Organization Designs Common Organization Designs Simple Structure A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. E X H I B I T 16–5 E X H I B I T 16–5 Organisational Behavior, Do Tien Long
    • Common Organization Designs (cont’d) Common Organization Designs (cont’d) Bureaucracy A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. Organisational Behavior, Do Tien Long
    • The Bureaucracy The Bureaucracy Strengths Weaknesses – Functional economies – Subunit conflicts with of scale organizational goals – Minimum duplication of – Obsessive concern with personnel and rules and regulations equipment – Lack of employee – Enhanced discretion to deal with communication problems – Centralized decision making Organisational Behavior, Do Tien Long
    • Common Organization Designs (cont’d) Common Organization Designs (cont’d) Matrix Structure A structure that creates dual lines of authority and combines functional and product departmentalization. Key Elements: Key Elements: + Gains the advantages of functional and product + Gains the advantages of functional and product departmentalization while avoiding their weaknesses. departmentalization while avoiding their weaknesses. + Facilitates coordination of complex and interdependent + Facilitates coordination of complex and interdependent activities. activities. – Breaks down unity-of-command concept. – Breaks down unity-of-command concept. Organisational Behavior, Do Tien Long
    • Matrix Structure (College of Business Matrix Structure (College of Business Administration) Administration) (Director) (Dean) Employee E X H I B I T 16–6 E X H I B I T 16–6 Organisational Behavior, Do Tien Long
    • New Design Options New Design Options Team Structure The use of teams as the central device to coordinate work activities. Characteristics: Characteristics: • •Breaks down departmental barriers. Breaks down departmental barriers. • •Decentralizes decision making to the team level. Decentralizes decision making to the team level. • •Requires employees to be generalists as well as Requires employees to be generalists as well as specialists. specialists. • •Creates aa“flexible bureaucracy.” Creates “flexible bureaucracy.” Organisational Behavior, Do Tien Long
    • New Design Options (cont’d) New Design Options (cont’d) Virtual Organization A small, core organization that outsources its major business functions. Highly centralized with little or no departmentalization. Concepts: Concepts: Advantage: Provides maximum flexibility while Advantage: Provides maximum flexibility while concentrating on what the organization does best. concentrating on what the organization does best. Disadvantage: Reduced control over key parts of the Disadvantage: Reduced control over key parts of the business. business. Organisational Behavior, Do Tien Long
    • A Virtual Organization A Virtual Organization E X H I B I T 16–7 E X H I B I T 16–7 Organisational Behavior, Do Tien Long
    • New Design Options (cont’d) New Design Options (cont’d) Boundaryless Organization An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. T-form Concepts: T-form Concepts: Eliminate vertical (hierarchical) and horizontal Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries. (departmental) internal boundaries. Breakdown external barriers to customers and Breakdown external barriers to customers and suppliers. suppliers. Organisational Behavior, Do Tien Long
    • Chapter Check-Up: Structure If someone has a high need for affiliation, would a virtual organization be a good fit for him or her? Why or why not? Discuss with a classmate whether or not an organic organization would be a good fit for this same person. Organisational Behavior, Do Tien Long
    • Why Do Structures Differ? Why Do Structures Differ? Mechanistic Model A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. Organisational Behavior, Do Tien Long
    • Why Do Structures Differ? Why Do Structures Differ? Organic Model A structure that is flat, uses cross-hierarchical and cross- functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making. Organisational Behavior, Do Tien Long
    • Mechanistic Versus Organic Models Mechanistic Versus Organic Models E X H I B I T 16–8 E X H I B I T 16–8 Organisational Behavior, Do Tien Long
    • Why Do Structures Differ? – Strategy Why Do Structures Differ? – Strategy Innovation Strategy A strategy that emphasizes the introduction of major new products and services. Cost-minimization Strategy A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. Imitation Strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven. Organisational Behavior, Do Tien Long
    • The Strategy-Structure Relationship The Strategy-Structure Relationship Strategy Structural Option Innovation Organic: A loose structure; low specialization, low formalization, decentralized Cost minimization Mechanistic: Tight control; extensive work specialization, high formalization, high centralization Imitation Mechanistic and organic: Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings E X H I B I T 16–9 E X H I B I T 16–9 Organisational Behavior, Do Tien Long
    • Why Do Structures Differ? – Size Why Do Structures Differ? – Size Size How the size of an organization affects its structure. As an organization grows larger, it becomes more mechanistic. Characteristics of large organizations: Characteristics of large organizations: • •More specialization More specialization • •More vertical levels More vertical levels • •More rules and regulations More rules and regulations Organisational Behavior, Do Tien Long
    • Why Do Structures Differ? – Technology Why Do Structures Differ? – Technology Technology How an organization transfers its inputs into outputs. Characteristics of routineness (standardized or Characteristics of routineness (standardized or customized) in activities: customized) in activities: • •Routine technologies are associated with tall, Routine technologies are associated with tall, departmentalized structures and formalization in departmentalized structures and formalization in organizations. organizations. • •Routine technologies lead to centralization when Routine technologies lead to centralization when formalization is low. formalization is low. • •Nonroutine technologies are associated with Nonroutine technologies are associated with delegated decision authority. delegated decision authority. Organisational Behavior, Do Tien Long
    • Why Do Structures Differ? – Environment Why Do Structures Differ? – Environment Environment Institutions or forces outside the organization that potentially affect the organization’s performance. Key Dimensions- Key Dimensions- • • Capacity: the degree to which an environment can support Capacity: the degree to which an environment can support growth. growth. • • Volatility: the degree of instability in the environment. Volatility: the degree of instability in the environment. • • Complexity: the degree of heterogeneity and concentration Complexity: the degree of heterogeneity and concentration among environmental elements. among environmental elements. Organisational Behavior, Do Tien Long
    • The Three Dimensional Model of the The Three Dimensional Model of the Environment Environment Volatility Capacity Complexity E X H I B I T 16–10 E X H I B I T 16–10 Organisational Behavior, Do Tien Long
    • “Bureaucracy Is Dead” “Bureaucracy Is Dead” Characteristics of Why Bureaucracy Survives Bureaucracies – Large size prevails – Specialization – Environmental turbulence – Formalization can be largely managed – Departmentalization – Standardization achieved – Centralization through hiring people who – Narrow spans of control have undergone extensive educational training – Adherence to a chain of command – Technology maintains control Organisational Behavior, Do Tien Long
    • Organizational Designs and Employee Organizational Designs and Employee Behavior Behavior Research Findings: Research Findings: • • Work specialization contributes to higher employee Work specialization contributes to higher employee productivity, but it reduces job satisfaction. productivity, but it reduces job satisfaction. • • The benefits of specialization have decreased rapidly as The benefits of specialization have decreased rapidly as employees seek more intrinsically rewarding jobs. employees seek more intrinsically rewarding jobs. • • The effect of span of control on employee performance is The effect of span of control on employee performance is contingent upon individual differences and abilities, task contingent upon individual differences and abilities, task structures, and other organizational factors. structures, and other organizational factors. • • Participative decision making in decentralized organizations is Participative decision making in decentralized organizations is positively related to job satisfaction. positively related to job satisfaction. Organisational Behavior, Do Tien Long
    • Organization Structure: Its Organization Structure: Its Determinants and Outcomes Determinants and Outcomes Associated with Implicit Models of Organizational Structure Perceptions that people hold regarding structural variables formed by observing things around them in an unscientific fashion. E X H I B I T 16–11 E X H I B I T 16–11 Organisational Behavior, Do Tien Long
    • Job Design Job Design Specification of (1) a job’s content, (2) the work method to be used in its performance, (3) how it relates to other jobs in the company Allows employees to control various aspects of their work Making more effective use of employee potentials to enhance quality of work life and improve company performance Organisational Behavior, Do Tien Long
    • Job Specialization Job Specialization Job specialisation – the result of the division of labour Division of labour – the successive division of an activity into smaller and smaller elements Organisational Behavior, Do Tien Long
    • Division of Labor and Specialization Division of Labor and Specialization Division of Labor Assemble Assemble only Test only Test Package Package only Complete activity Separate tasks Assigned to Individual Specialists Organisational Behavior, Do Tien Long
    • Advantages and Disadvantages of Job Advantages and Disadvantages of Job Specialization Specialization Advantages Disadvantages Less skilled employees can be Diminished motivation hired, simple assignments Poor-quality output Reducing training cost Diminished job satisfaction Repetition lead to expertise High turnover and increase productivity High absenteeism Work is perform more quickly Sabotage and strikes Minimize dependence on particular employees or special skills Organisational Behavior, Do Tien Long
    • Job Enlargement and Job Enrichment Job Enlargement and Job Enrichment Job Enlargement – extension of job’s scope, so that number of different actives an employee performs is increased, also known as Horizontal loading – Job scope – number of tasks an employee performs in a particular job Job Enrichment – extension of job’s dept so that employee discretion or control over a job is increased, also known as Vertical loading – Job dept – degree to which individuals can plan and control work involved in their jobs Organisational Behavior, Do Tien Long
    • Job Enlargement and Job Enrichment Job Enlargement and Job Enrichment Job Enlargement 1 activities 2 activities Job 1 from the from the preceding 5 Activities following Horizontal Loading Job Enrichment Added Responsibilities Vertical Loading Job 2 Basic Activities Organisational Behavior, Do Tien Long
    • Core Dimensions for Enrichment Core Dimensions for Enrichment 1. Skill variety – extent to which the job entails a number of activities requiring different skills 2. Task identity – degree to which the job allows completion of a major identifiable piece of work, rather than just a fragment 3. Task significant – extent to which a worker sees job output as having an important impact on other 4. Autonomy – amount of discretion allowed in determined schedules and work method to achieve required output 5. Feedback – degree to which job provides for clear, timely information about performance results Organisational Behavior, Do Tien Long
    • Implementing Job Enrichment Implementing Job Enrichment Combine tasks – increase skill variety and take identity by combining several jobs into a larger job Assign whole pieces of work – increase task identity and task significance by giving a “whole” piece of work so that they can accomplish a meaningful task Establish client relationships – increase skill variety, autonomy, and performance feedback bay allowing employees to deal directly with consumers, suppliers, peers performing related jobs Grant additional authority – allowing employees more authority for quality control and self-determination of work procedures Open feedback channels – providing open feedback channels so that employees can monitor and self- correct their work behavior Organisational Behavior, Do Tien Long
    • Implementing Job Enrichment Implementing Job Enrichment Implementing Method Core Job Dimensions 1.Combine Tasks 1.Skill Variety 2.Assign Whole Piece 2.Task Identity of Work 3.Task Significant 3.Establish Client Relationship 4.Autonomy 4.Grant Additional 5.Performance Feedback Authority 5.Open Feedback Channels Organisational Behavior, Do Tien Long
    • Attention to Job Design Attention to Job Design Managers determine the quantity and quality of different core dimensions Well-devised program can bring four beneficial effects: 1. High work motivation 2. High quality performance 3. High job satisfaction 4. Low absenteeism and turnover Not all employees desire enriched jobs Organisational Behavior, Do Tien Long
    • Job Analysis Job Analysis Job Analysis – the process of collecting and studying information pertaining to a job Job Description – a written statement of the tasks to be performed on a particular job Job Speciation – the qualifications for adequate job performance Organisational Behavior, Do Tien Long
    • Chapter Check-Up: Structure With which type of structure do you think trust is most necessary? Why? Are the “substitutes for trust” that are potentially built into some structures? If so, which ones? Organisational Behavior, Do Tien Long
    • GROUP WORKS GROUP WORKS QUESTIONS: 2, 3, 4 (P. 439) CASE: Motorola – What went wrong? (P. 441) Organisational Behavior, Do Tien Long