Ch15

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Organizational behavior

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Ch15

  1. 1. ORGANIZATIONAL BEHAVIOR S T E P H E N P. R O B B I N S WWW.PRENHALL.COM/ROBBINS T E N T H E D I T I O N© 2003 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie Cook
  2. 2. O B J E C T I V E S AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: 1. Identify the six key elements that define an organization’s structure. 2. Explain the characteristics of a bureaucracy.L E A R N I N G 3. Describe a matrix organization. 4. Explain the characteristics of a virtual organization. 5. Summarize why managers want to create boundaryless organizations. © 2003 Prentice Hall Inc. All rights reserved. 15–2
  3. 3. O B J E C T I V E S (cont’d) AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: 6. Contrast mechanistic and organic structural models. 7. List the factors that favor different organizational structures. 8. Explain the behavioral implications of different organizational designs.L E A R N I N G © 2003 Prentice Hall Inc. All rights reserved. 15–3
  4. 4. What Is Organizational Structure?What Is Organizational Structure? Key Elements: Key Elements: • • 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© 2003 Prentice Hall Inc.All rights reserved. 15–4
  5. 5. What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d) Division of labor: Division of labor: • • Makes efficient use of Makes efficient use of employee skills employee skills • • Increases employee skills Increases employee skills through repetition through repetition • • Less between-job Less between-job downtime increases downtime increases productivity productivity • • Specialized training is Specialized training is more efficient more efficient • • Allows use of specialized Allows use of specialized equipment equipment© 2003 Prentice Hall Inc.All rights reserved. 15–5
  6. 6. Key Design Questions and Answers for Designing theKey Design Questions and Answers for Designing theProper Organization StructureProper Organization Structure© 2003 Prentice Hall Inc. EXHIBIT 15-1All rights reserved. 15–6
  7. 7. Economies and Diseconomies of WorkEconomies and Diseconomies of WorkSpecializationSpecialization© 2003 Prentice Hall Inc. EXHIBIT 15-2All rights reserved. 15–7
  8. 8. What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d) Grouping Activities By: Grouping Activities By: • • Function Function • • Product Product • • Geography Geography • • Process Process • • Customer Customer© 2003 Prentice Hall Inc.All rights reserved. 15–8
  9. 9. What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d)© 2003 Prentice Hall Inc.All rights reserved. 15–9
  10. 10. What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d) Narrow Span Drawbacks: Narrow Span Drawbacks: • •Expense of additional Expense of additional layers of management. layers of management. Concept: • •Increased complexity of Increased complexity of Concept: vertical communication. vertical communication. Wider spans of Wider spans of management increase • •Encouragement of overly Encouragement of overly management increase tight supervision and organizational efficiency. organizational efficiency. tight supervision and discouragement of discouragement of employee autonomy. employee autonomy.© 2003 Prentice Hall Inc. 15–All rights reserved. 10
  11. 11. Contrasting Spans of ControlContrasting Spans of Control© 2003 Prentice Hall Inc. EXHIBIT 15– 15-3All rights reserved. 11
  12. 12. What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d)© 2003 Prentice Hall Inc. 15–All rights reserved. 12
  13. 13. Common Organization DesignsCommon Organization Designs A Simple Structure: A Simple Structure: Jack Gold’s Men’s Store Jack Gold’s Men’s Store© 2003 Prentice Hall Inc. EXHIBIT 15– 15-4All rights reserved. 13
  14. 14. Common Organization Designs (cont’d)Common Organization Designs (cont’d)© 2003 Prentice Hall Inc. 15–All rights reserved. 14
  15. 15. The BureaucracyThe Bureaucracy Strengths  Weaknesses – Functional – Subunit conflicts with economies of scale organizational goals – Minimum duplication – Obsessive concern of personnel and with rules and equipment regulations – Enhanced – Lack of employee communication discretion to deal – Centralized decision with problems making© 2003 Prentice Hall Inc. 15–All rights reserved. 15
  16. 16. Common Organization Designs (cont’d)Common Organization Designs (cont’d) Key Elements: Key Elements: + Gains advantages of + Gains advantages of functional and product functional and product departmentalization while departmentalization while avoiding their avoiding their weaknesses. weaknesses. + Facilitates coordination of + Facilitates coordination of complex and complex and interdependent activities. interdependent activities. – Breaks down unity-of- – Breaks down unity-of- command concept. command concept.© 2003 Prentice Hall Inc. 15–All rights reserved. 16
  17. 17. Matrix Structure (College of Business Administration)Matrix Structure (College of Business Administration) (Director) (Dean) Employee© 2003 Prentice Hall Inc. EXHIBIT 15– 15-5All rights reserved. 17
  18. 18. New Design OptionsNew Design Options Characteristics: Characteristics: • •Breaks down Breaks down departmental barriers. departmental barriers. • •Decentralizes decision Decentralizes decision making to the team level. making to the team level. • •Requires employees to Requires employees to be generalists as well as be generalists as well as specialists. specialists. • •Creates aa“flexible Creates “flexible bureaucracy.” bureaucracy.”© 2003 Prentice Hall Inc. 15–All rights reserved. 18
  19. 19. New Design Options (cont’d)New Design Options (cont’d) Concepts: Concepts: Provides maximum Provides maximum flexibility while flexibility while concentrating on what concentrating on what the organization does the organization does best. best. Disadvantage is reduced Disadvantage is reduced control over key parts of control over key parts of the business. the business.© 2003 Prentice Hall Inc. 15–All rights reserved. 19
  20. 20. A Virtual OrganizationA Virtual Organization© 2003 Prentice Hall Inc. EXHIBIT 15– 15-7All rights reserved. 20
  21. 21. New Design Options (cont’d)New Design Options (cont’d) T-form Concepts: T-form Concepts: Eliminate vertical Eliminate vertical (hierarchical) and (hierarchical) and horizontal (departmental) horizontal (departmental) internal boundaries. internal boundaries. Breakdown external Breakdown external barriers to customers and barriers to customers and suppliers. suppliers.© 2003 Prentice Hall Inc. 15–All rights reserved. 21
  22. 22. Why Do Structures Differ?Why Do Structures Differ?© 2003 Prentice Hall Inc. 15–All rights reserved. 22
  23. 23. Why Do Structures Differ?Why Do Structures Differ?© 2003 Prentice Hall Inc. 15–All rights reserved. 23
  24. 24. Mechanistic Versus Organic ModelsMechanistic Versus Organic Models© 2003 Prentice Hall Inc. EXHIBIT 15– 15-8All rights reserved. 24
  25. 25. Why Do Structures Differ? – StrategyWhy Do Structures Differ? – Strategy© 2003 Prentice Hall Inc. 15–All rights reserved. 25
  26. 26. The Strategy-Structure RelationshipThe Strategy-Structure Relationship© 2003 Prentice Hall Inc. EXHIBIT 15– 15-9All rights reserved. 26
  27. 27. Why Do Structures Differ? – TechnologyWhy Do Structures Differ? – Technology 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 delegated Nonroutine technologies are associated with delegated© 2003decisionauthority. decision authority. Prentice Hall Inc. 15–All rights reserved. 27
  28. 28. Why Do Structures Differ? – EnvironmentWhy Do Structures Differ? – Environment Key Dimensions: Key Dimensions: • • Capacity: the degree to Capacity: the degree to which an environment which an environment can support growth. can support growth. • • Volatility: the degree of Volatility: the degree of instability in the instability in the environment. environment. • • Complexity: the degree Complexity: the degree of heterogeneity and of heterogeneity and concentration among concentration among environmental environmental elements. elements.© 2003 Prentice Hall Inc. 15–All rights reserved. 28
  29. 29. The Three Dimensional Model of the The Three Dimensional Model of the Environment Environment Volatility CapacityComplexity © 2003 Prentice Hall Inc. EXHIBIT 15– 15-10 All rights reserved. 29
  30. 30. Organizational Designs and EmployeeOrganizational Designs and EmployeeBehaviorBehavior 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 Participative decision making in decentralized organizations is positively related to job satisfaction. organizations is positively related to job satisfaction.© 2003 Prentice Hall Inc. 15–All rights reserved. 30
  31. 31. Organization Structure: Its Determinants andOrganization Structure: Its Determinants andOutcomesOutcomes© 2003 Prentice Hall Inc. EXHIBIT 15– 15-11All rights reserved. 31

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