Robbins eob9 inst_ppt_14

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Robbins eob9 inst_ppt_14

  1. 1. Foundations of Organization Structure Chapter 14 Essentials of Organizational Behavior, 9/e Stephen P. Robbins/Timothy A. Judge
  2. 2. After studying this chapter, you should be able to: <ul><li>Identify the six key elements that define an organization’s structure </li></ul><ul><li>Explain the characteristics of a bureaucracy </li></ul><ul><li>Describe a matrix organization </li></ul><ul><li>Explain the characteristics of a virtual organization </li></ul><ul><li>Summarize why managers want to create boundaryless organizations </li></ul><ul><li>Contrast mechanistic and organic structural models </li></ul><ul><li>List the factors that favor different organization structures </li></ul><ul><li>Explain the behavioral implications of different organization structures </li></ul>
  3. 3. Organization Structure <ul><li>Defines how job tasks are formally divided, grouped, and coordinated </li></ul><ul><li>Key elements to be addressed: </li></ul><ul><ul><li>Work specialization </li></ul></ul><ul><ul><li>Departmentalization </li></ul></ul><ul><ul><li>Chain of command </li></ul></ul><ul><ul><li>Span of control </li></ul></ul><ul><ul><li>Centralization </li></ul></ul><ul><ul><li>Decentralization </li></ul></ul><ul><ul><li>Formalization </li></ul></ul>
  4. 4. Work Specialization <ul><li>Division of labor </li></ul><ul><li>Describes the degree to which activities in the organization are subdivided into separate jobs </li></ul><ul><li>Creates problems when carried too far </li></ul>
  5. 5. Departmentalization <ul><li>Basis by which jobs are grouped together </li></ul><ul><ul><li>Function </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Geography </li></ul></ul><ul><ul><li>Process </li></ul></ul><ul><ul><li>Customer </li></ul></ul>
  6. 6. Chain of Command <ul><li>Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom </li></ul><ul><li>Authority </li></ul><ul><li>Unity of Command principle </li></ul><ul><li>Fewer organizations find this is effective </li></ul>
  7. 7. Span of control <ul><li>Determines the number of levels and managers an organization has </li></ul><ul><li>Trend in recent years has been toward wider spans of control </li></ul><ul><li>Wider span depends on employees knowing their jobs well </li></ul>
  8. 8. Centralization and Decentralization <ul><li>Centralization - degree to which decision making is concentrated at a single point in the organization </li></ul><ul><li>Highly centralized is when top managers make all the decisions </li></ul><ul><li>More decentralized is when front line employees and managers make decisions </li></ul>
  9. 9. Formalization <ul><li>Degree to which jobs within the organization are standardized </li></ul>
  10. 10. Common Organizational Designs <ul><li>Simple structure </li></ul><ul><li>Bureaucracy </li></ul><ul><li>Matrix structure </li></ul>
  11. 11. Simple Structure <ul><li>Low degree of departmentalization </li></ul><ul><li>Wide spans of control </li></ul><ul><li>Authority centralized in a single person </li></ul><ul><li>Little formalization </li></ul><ul><li>Difficult to maintain in anything other than small organizations </li></ul>
  12. 12. Bureaucracy <ul><li>Highly routine operating tasks achieved through specialization </li></ul><ul><li>Formalized rules and regulations </li></ul><ul><li>Tasks that are grouped into functional departments </li></ul><ul><li>Centralized authority </li></ul><ul><li>Narrow spans of control </li></ul><ul><li>Decision making that follows the chain of command </li></ul>
  13. 13. Matrix Structure <ul><li>Combines two forms of departmentalization </li></ul><ul><ul><li>Functional </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><li>Dual chain of command </li></ul><ul><li>Advantages: facilitates coordination and efficient allocation of specialists </li></ul><ul><li>Disadvantages: possible confusion, fosters power struggles, increased stress </li></ul>
  14. 14. Matrix Structure for a College of Business Administration
  15. 15. New Options <ul><li>The Team Structure </li></ul><ul><li>The Virtual Organization – a small core organization that outsources major business functions </li></ul><ul><li>The Boundaryless Organization – eliminates the chain of command, has limitless spans of control, replace departments with empowered teams </li></ul>
  16. 16. Mechanistic versus Organic Structures
  17. 17. Determinants of Organization Structure <ul><li>Strategy Dimensions: </li></ul><ul><ul><li>Innovation Strategy </li></ul></ul><ul><ul><li>Cost-Minimization Strategy </li></ul></ul><ul><ul><li>Imitation Strategy </li></ul></ul><ul><li>Organization Size </li></ul><ul><li>Technology </li></ul><ul><li>Environmental Uncertainty </li></ul>
  18. 18. Organizational Structure and Employee Behavior <ul><li>Consider employee preferences for: </li></ul><ul><ul><li>Work Specialization </li></ul></ul><ul><ul><li>Span of Control </li></ul></ul><ul><ul><li>Centralization </li></ul></ul>
  19. 19. Implications for Managers <ul><li>Structural relationships impact attitude and behavior </li></ul><ul><li>Structure constrains employees </li></ul>
  20. 20. Summary <ul><li>Identified the six key elements that define an organization’s structure </li></ul><ul><li>Explained the characteristics of a bureaucracy </li></ul><ul><li>Described a matrix organization </li></ul><ul><li>Explained the characteristics of a virtual organization </li></ul><ul><li>Summarized why managers want to create boundaryless organizations </li></ul><ul><li>Contrasted mechanistic and organic structural models </li></ul><ul><li>Listed the factors that favor different organization structures </li></ul><ul><li>Explained the behavioral implications of different organization structures </li></ul>

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