2. Organizing
Deciding how best to group organizational elements.
Organization Structure
The set of elements that can be used to configure an organization.
1. Designing Jobs
2. GroupingJobs
3. Establishingreporting relationship between jobs
4. Distributing authority among jobs
5. Coordinating activities amongjobs
6. Differentiating amongpositions
15. Virtual Organization
Asmall core organizationthat outsources its major
businessfunctions.
Independent R&D
consulting firm
Advertisingagency
Executive
group
Factoriesin
South Korea
Commissioned
SalesRepresentatives
16. The Boundaryless Organization
An organization seeks to eliminate the chain of command,
have limitless spans of control, and replace departments
with empowered teams.
Tobreak down vertical boundaries, the following initiatives
can be undertaken:
Cross-hierarchicalteams
Participativedecisionmaking practices
360-degree performance appraisals
17. Continued
To reduce horizontal boundaries-
Replace functional departments with cross-functional teams
Organize activities around processes.
Rotate people through different functional areas using lateral
transfers.
18. Leaner Organization: Downsizing
Asystematic effort to make an ogranization leaner byclosing
locations,reducing staff, or selling off business units that
don’t add value.
Advantages: 1. reduce bureaucracy
2. speed up decision making
Disadvantages: 1. employees who remain often worried about future
layoffs and maybe less committed to the organization.
2. stress reactions can lead to increased sickness
absences,lower concentration on the job and lower creativity.
3. lead to more voluntary turnover.
