task for my group in this subject but we did it simple as we can .. the explanation is already wrote in the text book .. all the examples were there .

1. 6.1 Describe six key elements in
organizational design

2. 1.Work specialization
 dividing work activities into separate job tasks
(division of labor)
 allows organization to efficiently use the
diversity of skill that workers have
 this element could lead to great increseas in
productivity
Ex : McDonald’s uses high specilization to get its
products made and delivered to customers
efficiently

3. 2.Departmentalization
 Hows job are grouped together
5 common forms of
departmentalization
1.functional
2.product
3.customers
4.geographic
5.process

4. 3.Authority and responsibility
 rights inherent in a managerial position to
give orders and expect the orders to be
obeyed

5.  Line authority
-entitles a manager to direct the work of an employee according
to the chain of command
 staff authority
-functions to support, assist, advise, and generally reduce some
of their informational burdens.

6.  When managers delegate authority, they
must allocate commensurate responsibility
 That is, when employees are given rights they
also assume a corresponding obligation to
perform and be held accountable for their
performance.

7.  unity of command
-a structure in which each empoyee reports to
only one manager
 How do authority and power differ ?

8. Sources of power

9. 4.Span of control
 the number of employees a manager
efficiently and effectively can supervise
 span of control received a great deal of
attention from early management writers

10. 5.Centralization and decentralization
 differ
Today’s organizations are more complex and responsive
to dynamic changes in their environments, so many
managers believe that decisions need to be made by
those individuals closest to the problems. Notice,
however, that decentralization doesn’t imply that top-
level managers no longer make decisions.

11. 6.Formalization
 how standardized an organization’s jobs are and the
extent to which employee behaviour is guided by
rules and procedures.
 when formalization is high employees have little
discretion over what’s, when and how its done
 when formalization is low employees have more
discretion in how they do their work

12. 6.2 The Mechanistic Model
and
The Organic Model of
Organizational Design

13. Models of Organizational Design
Organic
Mechanistic
Rigid hierarchical relationship
Fixed duties
Many rules
Formalized communication channels
Centralized decision authority
Taller structures
Collaboration (both vertical & horizontal)
Adoptable duties
Few rules
Informal communication
Decentralized decision authority
Flatter structures

14. Strategy and Structure
•Based on the work of Alfred Chandler. It believes goals are important
part of
organization’s strategies and that structure should facilitate goal
achievement.
•Simple strategy means simple structure and elaborate strategy means
more
complex structure.
•Certain structural designs work best with different organizational
strategies.
•Passionate pursuit of innovation is associated with an organic structure,
while a
passionate pursuit of cost control is associated with a mechanistic
organization.

15. Size and Structure
Mechanistic Organic
More than 2,000
employees
makes forces
organizations to
become more
mechanistic.
Less than 2,000
employees
can be organic.

16. Technology and Structure
Every organization uses some form of technology to convert
its inputs to outputs.
For example :
•Your smartphone or tablet: standardized assembly line.
•Your resume: custom design and print.
•Your bottle of ibuprofen: continuous flow of
production process.

17. Environment and Structure
Environment is a constraint on managerial discretion.
Environment also has a major effect on an organization’s
structure:
1. Stable environment: Mechanistic structure
2. Dynamic/uncertain environment: Organic structure
It helps explain why so many managers today have restructured
their organizations to be lean, fast, and flexible.

18. 6.3 Compare and Contrast
Traditional and
Contemporary Organizational
Designs

19. Traditional Organizational Designs
Simple structure
 Low departmentalization, wide spans of control, centralized
authority, little formalization
Functional structure
 Departmentalization by function
• Operations, finance, human resources, and product research and
development
Divisional structure
 Composed of separate business units or divisions with
limited autonomy under the coordination and control the
parent corporation.

20. Strengths and Weaknesses of
Traditional Organizational Designs

21. Contemporary Organizational Designs
Team Structure
• What it is: A structure in which the entire organization is made up of work
groups or teams.
• Advantages: Employees are more involved and empowered. Reduced barriers
among functional areas.
• Disadvantages: No clear chain of command. Pressure on teams to perform.
Matrix-Project Structure
What it is: A structure that assigns specialists from different functional areas
to work on projects but who return to their areas when the project
is completed. Project is a structure in which employees
continuously work on projects. As one project is completed,
employees move on to the next project.
• Advantages: Fluid and flexible design that can respond to environmental
changes. Faster decision making.
• Disadvantages: Complexity of assigning people to projects. Task and personality
conflicts.

22. Contemporary Organizational Designs
(cont’d)
Boundaryless Structure
What it is: A structure that is not defined by or limited to artificial horizontal,
vertical, or external boundaries; includes virtual and network
types of organizations.
• Advantages: Highly flexible and responsive. Draws on talent wherever it’s
found.
• Disadvantages: Lack of control. Communication difficulties.

23. Organizational Designs
• Contemporary Organizational Designs
Team structures
 The entire organization is made up of work groups or self-
managed teams of empowered employees.
Matrix and project structures
 Specialists from different functional departments are
assigned to work on projects led by project managers.
 Matrix and project participants have two managers.
 In project structures, employees work continuously on
projects; moving on to another project as each project is
completed.

24. An Example of a Matrix and Project Organization

25. Organizational Designs
• Contemporary Organizational Designs(cont’d)
Boundaryless Organization
 An flexible and unstructured organizational design that is
intended to break down external barriers between the
organization and its customers and suppliers.
 Removes internal (horizontal) boundaries:
• Eliminates the chain of command
• Has limitless spans of control
• Uses empowered teams rather than departments
 Eliminates external boundaries:
• Uses virtual, network, and modular organizational structures
to get closer to stakeholders.

26. Removing External Boundaries
 Virtual Organization
 An organization that consists of a small core of full-time employees
and that temporarily hires specialists to work on opportunities that
arise. An organization enjoys a network of talent without unnecessary
overhead and structural complexity.
 Network Organization or Modular Organization
 A small core organization that outsources its major business functions
(e.g., manufacturing) in order to concentrate what it does best.

27. 6.4 Discuss the design
challenges faced by today’s
organizations

28. Current Organizational Design
Challenges
 Keeping employees connected
Managing global structural issues
Building a learning organization
Designing flexible work arrangements

29. ORGANIZATIONAL CULTURE
• Strong Mutual Relationships
•Sense of Community
• Caring
•Trust
LEADERSHIP
• Shared Vision
•Collaboration
INFORMATION SHARING
• Open
• Timely
• Accurate
ORGANIZATIONAL DESIGN
• Boundaryless
• Teams
• Empowerment
A Learning Organization
THE LEARNING
ORGANIZATION

30. Flexible Work Arrangements
Telecommuting
 Compressed workweek
 Flextime
 Job Sharing
 Contingent workers

31. THE END