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Running head: Leadership and Advocacy: Programming for
Community Need 1
Leadership and Advocacy: Programming for Community Need
3
Please delete all red type prior to submission and fill in with
your original information.
This Assignment should be written adhering to the guidelines of
Standard English. This means that your thoughts should be well-
organized, logical, and unified as well as original with the
viewpoint and purpose clearly established and sustained.
Standard English guidelines also include the use of correct
grammar, punctuation, and sentence structure. All writing
should be in 6th Edition APA formatting and citation style.
Leadership and Advocacy: Programming for Community Need
First/Last Name
Purdue University Global
CE371 – Section #
Date
As a reminder, the body of your Assignment should be 3-5
pages.
Diversity Needs Assessment
Begin by visiting the US Census Bureau site and review the
demographic information for your state.
Use this paragraph to describe the results that you found
from the needs assessment in your community.
Based on the needs identified in your community, use this next
paragraph to identify how potential children and families will
be served with your program.
Use the final paragraph in this section to discuss how
multiculturalism and diversity will be addressed with your
program.
Mission Statement
For this section, create a clear and concisely written mission
statement that describes the purpose and goals of your proposed
program. A well-developed mission statement demonstrates to
prospective clients and outside observers that this is a quality
center with a purpose. Keep in mind the cultural, educational,
and socioeconomic levels of the children and families you will
serve.
Programming
For this first paragraph, use the NAEYC’s quality standards for
serving young children to discuss how you plan to address one
of the NAEYC standards. Identify 2-3 developmentally
appropriate practices you will use to ensure program quality and
compliance with this standard you selected.
For the second paragraph, use the NAEYC’s quality standards
for serving young children to discuss how you plan to address a
second NAEYC standard. Identify 2-3 developmentally
appropriate practices you will use to ensure program quality and
compliance with this standard you selected.
Quality Assessment
Begin this section by using the QRIS Resource Guide to find
out your own state’s Quality Rating and Improvement System
(QRIS) for achieving highest quality.
Then, use this paragraph to describe the “levels” of quality and
provide some examples of how you obtain the various levels.
Next, identify what objective quality rating scales will be used
to measure your quality at your program, and discuss how each
will be used.
Evaluation
For this final section, locate at least three professional sources
from the PG library (such as the journal articles listed in the
Unit 9 Readings). Be sure to use in-text citations and full
references for these articles.
Begin this section by comparing two research-based quality-
rating frameworks for evaluating early childhood programs for
continuous quality improvement.
Finally, choose one of the evaluation measures you reviewed
and describe three ways you can use it to ensure continuous
quality improvement.
References
Please include all references used in your responses and cite all
sources using proper APA formatting and citation style. The full
reference for each in-text citation (ex. (Doe, 2013)) used in the
body of your paper should be included and listed alphabetically
on this reference page.
Doe, J. (2013). This is a sample APA journal article. Sample
APA Journal Articles Weekly, 52(1), 34–76.
Essentials of Organizational Behavior
Fourteenth Edition
Chapter 15
Foundations of Organizational Structure
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
After studying this chapter you should be able to:
Identify the seven elements of an organization’s structure.
Identify the characteristics of the functional structure, the
divisional structure, and the matrix structure.
Identify the characteristics of the virtual structure, the team
structure, and the circular structure.
Describe the effects of downsizing on organizational structures
and employees.
Contrast the reasons for mechanistic and organic structural
models.
Analyze the behavioral implications of different organizational
designs.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
What Is Organization Structure?
Organizational Structure:
Defines how job tasks are formally divided, grouped, and
coordinated
Key elements:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
Boundary spanning
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Organizational structure depicts how job tasks are formally
divided, grouped, and coordinated. The key elements of
organizational structure include work specialization,
departmentalization, chain of command, span of control,
centralization and decentralization, formalization, and boundary
spanning.
3
Key Questions and Answers
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This exhibit presents each element as an answer to an important
structural question.
4
Work Specialization
Work specialization:
Describes the degree to which activities in the organization are
subdivided into separate jobs
Also known as division of labor
Benefits
Greater efficiency and lower costs
Costs
Human costs when carried too far
Job enlargement as a solution
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
A key part of organizational structure is understanding the
degree to which tasks are divided into separate jobs or work
specialization. The division of labor is helpful in creating the
most efficient way to utilize employee skills, increase their
skills, and maximize their input.
Work specialization can cause greater economies, but in some
cases it can cause diminishing returns due to repetition that can
lead to boredom. Job enlargement can be more effective at
creating greater efficiencies than work specialization.
5
Work Specialization Economies
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This exhibit shows economies and diseconomies of work
specialization.
6
Departmentalization
Departmentalization:
Basis by which jobs are grouped together so that common tasks
can be coordinated
Common bases:
Functional
Product or service
Geography
Process and customer
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Departmentalization defines how jobs are grouped together.
There are a number of options to choose from when grouping
jobs; you could organize around function, product, location,
process, or customer. When jobs are grouped, departments are
formed.
7
Chain of Command
Chain of command:
Unbroken line of authority that extends from the top of the
organization to the lowest echelon and clarifies who reports to
whom
Authority: positional rights
Unity of command: one boss
Fewer organizations find this is relevant
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The chain of command represents the line of authority present
in decision making. Embedded in the chain of command is the
inherent right of a manager to give orders and expect the orders
to be followed. Unity of command is the idea that a subordinate
should have only one superior to report to so that directions and
the chain of command are clear.
As organizations change, this concept is becoming less and less
important.
8
Span of Control
Span of control:
The number of employees a manager is expected to effectively
and efficiently direct
Determines the number of levels and managers an organization
has
Trend is toward wider spans of control
Wider span depends on knowledgeable employees
Affects speed of communication and decision making
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Span of control looks at how many workers a manager can
effectively direct towards organizational goals. Wider span
allows for more efficiency because you need fewer managers.
However, it can also limit the amount of time and direction
managers can give to their employees. A narrow span can allow
for more direction but can add layers of management, increase
the complexity of the vertical communication, and encourage
overly tight supervision, limiting employee autonomy.
9
Contrasting Spans of Control
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The exhibit illustrates that wider spans of control have fewer
levels and fewer managers.
10
Centralization and Decentralization
Centralization:
Degree to which decision making is concentrated at a single
point in the organization
Only includes formal authority: positional rights
Highly centralized when top managers make all the decisions
Decentralized when front line employees and supervisors make
decisions
Trend is toward increased decentralization
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The fifth aspect of structure deals with centralization and
decentralization. Centralization is the degree to which decision
making is concentrated at a single point in the organization,
typically at the top. Decentralization represents an organization
that spreads decision making throughout the organization.
11
Formalization
Formalization:
Degree to which jobs within the organization are standardized
Formal: minimum discretion over what is to be done, when it is
done, and how
Informal: freedom to act is necessary
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Formalization is the degree to which jobs within the
organization are standardized. When there is high formalization,
workers have very little control over how they do their work,
and they will be required to follow a number of rules and
procedures. Lower formalization will tend to allow for different
job behaviors to get the job done, giving workers more control
over their work.
12
Boundary Spanning
Boundary spanning:
When individuals form relationships outside their formally
assigned groups
Liaison roles
Development activities
Job rotations
Organizational goals and shared identity
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Organizations can use formal mechanisms to facilitate
boundary-spanning activities through their structures.
One method is to assign formal liaison roles or develop
committees of individuals from different areas of the
organization.
Development activities can also facilitate boundary spanning.
Employees with experience in multiple functions, such as
accounting and marketing, are more likely to engage in
boundary spanning.
Many organizations try to set the stage for these sorts of
positive relationships by creating job rotation programs so new
hires get a better sense of different areas of the organization.
A final method to encourage boundary spanning is to bring
attention to overall organizational goals and shared identity
concepts.
13
Common Organizational Designs
Three common organizational frameworks:
Simple structure
Bureaucracy
Matrix structure
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
There are a number of organizational structures available to
companies. We will look at a number of options over the next
several slides.
14
Simple Structure
Low degree of departmentalization
Wide spans of control
Authority centralized in a single person
Little formalization
Difficult to maintain in anything other than small organizations
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The first and most basic structure is the simple structure. This
structure has a low degree of departmentalization, wide spans of
control, and centralized decision making with little
formalization in job design.
This structure is difficult to utilize in anything other than small
organizations.
15
Bureaucracy
Highly routine operating tasks achieved through specialization
Formal rules and regulations
Centralized authority
Narrow spans of control
Tasks grouped by functional departments
Decision making follows the chain of command
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Another type of organizational design is bureaucracy. In a
bureaucratic organization, there will be a great deal of
structure. The tasks will be completed through specialization,
and they tend to be formalized through rules and regulations.
Departments will be highly defined by function, and authority is
centralized. Decision making will follow a strict chain of
command and there will be narrow spans of control. The
bureaucratic organization will be one that is highly defined and
very controlled.
16
Functional and Divisional Structures
Functional structure: groups employees by their similar
specialties, roles, or tasks
Divisional structure: groups employees into units by product,
service, customer, or geographic market area
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
There are two aspects of bureaucracies we should explore:
functional and divisional structures.
17
Matrix Structure
Combines two forms of departmentalization
Functional
Product
Dual chain of command
Advantages:
Facilitates coordination and efficient allocation of specialists
Disadvantages:
Possible confusion, fosters power struggles, stress
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The matrix structure is another common organizational design.
This structure creates dual lines of authority and combines
functional and product departments in a way to effectively meet
organizational goals.
The key elements of the matrix structure is that it gains the
interactions between the functional and product departments by
coordinating complex and interdependent activities to help
reach the goals set forth in an efficient manner, opening up
avenues for new ideas to achieve the company’s mission. The
matrix structure also breaks down the unity-of-command
concept as the lines of authority are blurred.
18
Matrix Structure for a College of Business Administration
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This slide shows an example of a matrix structure within a
college.
19
New Design Options
Virtual Organization:
A small core organization that outsources its major business
functions
Highly centralized with little or no departmentalization
Provides maximum flexibility while concentrating on what the
organization does best
Reduced control over key parts of the business
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Virtual organizations are developing as acceptable
organizational structures. This structure offers a small core
organization that outsources many of its major functions to
competent suppliers. Virtual organizations are highly
centralized with virtually no departmentalization to provide
maximum flexibility, focusing on what the organization does
best. This type of organization reduces control over some of the
key parts of the business.
20
A Virtual Organization
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This exhibit shows a virtual organization in which management
outsources all the primary functions of the business.
21
The Team Structure
Team structure:
Eliminates the chain of command
Has limitless spans of control
Replaces departments with empowered teams
Breaks down geographical barriers
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Boundaryless organizations are set up to reduce the structure
and tight control over work. They organize in a way to try to
empower teams. They eliminate vertical and horizontal
boundaries, as well as geographic boundaries. Boundaryless
organizations also try to breakdown external barriers to
customers and suppliers through their structure and style of
communication. These organizations also break down
geographical barriers.
22
The Circular Structure
Circular structure: Top management is at the center of the
organization with its vision spreading outward in rings grouped
by function
May be confusing for employees
May be used to spread CSR initiatives
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Picture the concentric rings of an archery target. In the center
are the executives; radiating outward in rings grouped by
function are the managers, then the specialists, then the
workers. This is the circular structure.
23
The Leaner Organization: Downsizing
Downsizing:
A systematic effort to make an organization leaner by selling
off business units, closing locations or reducing staff
Controversial because of the negative impact on employees
Impact on organizational performance has been very
controversial
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
In the midst of tough economic times and the need for
companies to be leaner, downsizing has been on the rise.
Downsizing is a systematic effort to make an organization
leaner by ridding itself of a business units, excessive locations,
and staff. It has been very controversial because of the strong
negative impact on employees. Because of this negative impact,
the link to performance enhancement has been questioned.
24
Organizational Design Models
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This slide show two extreme models of organizational design –
the mechanistic model and the organic model. Several factors,
discussed next, influence which type of structure is best for an
organization.
25
Determinants of Structure
Organizational Strategy
Innovation strategy: introduce new offerings-prefer organic
structures
Cost-minimization strategy: cost control–prefer mechanistic
structures
Imitation strategy: minimal risk and maximum profit–both
structures used
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Structures differ for a number of reasons. The first is that
structure is set up to facilitate the strategy of the organization.
If your organization is focusing on innovation as a key value,
then it may be best served by an organic structure. Whereas, if
the strategy emphasizes minimizing costs, a mechanistic
structure will work better. Strategy should always dictate
structure instead of structure dictating strategy.
26
Optimal Structural Option
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Exhibit 15-7 describes the structural option that best matches
each strategy.
27
More Determinants of Structure
Organization Size
Move toward mechanistic structure as size increases
Technology
Routine activities prefer mechanistic structures, non-routine
prefer organic structures
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Structures differ for a number of reasons. The first is that
structure is set up to facilitate the strategy of the organization.
If your organization is focusing on innovation as a key value,
then it may be best served by an organic structure. Whereas, if
the strategy emphasizes minimizing costs, a mechanistic
structure will work better. Strategy should always dictate
structure instead of structure dictating strategy.
Structures will also differ by organization size, the larger the
organization, the more likely it will be mechanistic. Technology
also influences structure. The more routine the activities, the
more mechanistic the structure should be.
28
Still More Determinants of Structure
Environment
Dynamic environments lead to organic structures
Capacity
Volatility
Complexity
Institutions
Act as guidelines for appropriate behavior
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Structures will also differ based on the environment in which
they exist. The more dynamic the environment, the more
organic the structure will need to be to facilitate quick decisions
and fast turnaround. Finally, institutions play a role in
organizational design by acting as guidelines for appropriate
behavior.
29
The Environment
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Exhibit 15-8 summarizes our definition of the environment
along its three dimensions.
30
Organizational Designs and Employee Behavior
Cannot generalize any link between structure and performance
Consider employee preferences for:
Work specialization
Span of control
Centralization
Predictability versus autonomy
National culture influences organizational structure
High power distance cultures accept mechanistic structures
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Organizational designs are not a good predictor of employee
behavior. Research has shown that work specialization can lead
to increased productivity but lower job satisfaction.
Specialization has not been popular, as employees are seeking
more intrinsically rewarding jobs. Span of control has mixed
results depending on individual differences in employees and
organizational factors. Centralization can facilitate different
employee responses.
Research suggests that national culture may influence
organizational structure. In particular, organizations with
people from high-power distance cultures typically find that
employees are more accepting of mechanistic structures than
employees from low power-distance countries.
Various factors will influence workers in their job satisfaction
and their willingness to stay with an organization.
31
Implications for Managers
Specialization can make operations more efficient, but
excessive specialization can create dissatisfaction and reduced
motivation.
Avoid designing rigid hierarchies that overly limit employees’
empowerment and autonomy.
Balance the advantages of remote work against the potential
pitfalls before adding flexible workplace options.
Downsize your organization to realize major cost savings, and
focus the company around core competencies-but only if
necessary because downsizing can have a significant negative
impact on employee affect.
Consider the scarcity, dynamism, and complexity of the
environment, and balance the organic and mechanistic elements
when designing an organizational structure.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Structure does have an impact on both the attitudes and
behaviors of the people within the organization, so it is
important that managers effectively select and utilize structure
within their organizations.
32
Copyright
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.

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  • 1. Running head: Leadership and Advocacy: Programming for Community Need 1 Leadership and Advocacy: Programming for Community Need 3 Please delete all red type prior to submission and fill in with your original information. This Assignment should be written adhering to the guidelines of Standard English. This means that your thoughts should be well- organized, logical, and unified as well as original with the viewpoint and purpose clearly established and sustained. Standard English guidelines also include the use of correct grammar, punctuation, and sentence structure. All writing should be in 6th Edition APA formatting and citation style. Leadership and Advocacy: Programming for Community Need First/Last Name Purdue University Global CE371 – Section # Date As a reminder, the body of your Assignment should be 3-5 pages. Diversity Needs Assessment Begin by visiting the US Census Bureau site and review the demographic information for your state. Use this paragraph to describe the results that you found from the needs assessment in your community.
  • 2. Based on the needs identified in your community, use this next paragraph to identify how potential children and families will be served with your program. Use the final paragraph in this section to discuss how multiculturalism and diversity will be addressed with your program. Mission Statement For this section, create a clear and concisely written mission statement that describes the purpose and goals of your proposed program. A well-developed mission statement demonstrates to prospective clients and outside observers that this is a quality center with a purpose. Keep in mind the cultural, educational, and socioeconomic levels of the children and families you will serve. Programming For this first paragraph, use the NAEYC’s quality standards for serving young children to discuss how you plan to address one of the NAEYC standards. Identify 2-3 developmentally appropriate practices you will use to ensure program quality and compliance with this standard you selected. For the second paragraph, use the NAEYC’s quality standards for serving young children to discuss how you plan to address a second NAEYC standard. Identify 2-3 developmentally appropriate practices you will use to ensure program quality and compliance with this standard you selected. Quality Assessment Begin this section by using the QRIS Resource Guide to find out your own state’s Quality Rating and Improvement System (QRIS) for achieving highest quality. Then, use this paragraph to describe the “levels” of quality and provide some examples of how you obtain the various levels. Next, identify what objective quality rating scales will be used to measure your quality at your program, and discuss how each will be used. Evaluation For this final section, locate at least three professional sources
  • 3. from the PG library (such as the journal articles listed in the Unit 9 Readings). Be sure to use in-text citations and full references for these articles. Begin this section by comparing two research-based quality- rating frameworks for evaluating early childhood programs for continuous quality improvement. Finally, choose one of the evaluation measures you reviewed and describe three ways you can use it to ensure continuous quality improvement. References Please include all references used in your responses and cite all sources using proper APA formatting and citation style. The full reference for each in-text citation (ex. (Doe, 2013)) used in the body of your paper should be included and listed alphabetically on this reference page. Doe, J. (2013). This is a sample APA journal article. Sample APA Journal Articles Weekly, 52(1), 34–76. Essentials of Organizational Behavior Fourteenth Edition Chapter 15 Foundations of Organizational Structure Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. After studying this chapter you should be able to:
  • 4. Identify the seven elements of an organization’s structure. Identify the characteristics of the functional structure, the divisional structure, and the matrix structure. Identify the characteristics of the virtual structure, the team structure, and the circular structure. Describe the effects of downsizing on organizational structures and employees. Contrast the reasons for mechanistic and organic structural models. Analyze the behavioral implications of different organizational designs. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. What Is Organization Structure? Organizational Structure: Defines how job tasks are formally divided, grouped, and coordinated Key elements: Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization Boundary spanning Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Organizational structure depicts how job tasks are formally divided, grouped, and coordinated. The key elements of organizational structure include work specialization, departmentalization, chain of command, span of control, centralization and decentralization, formalization, and boundary
  • 5. spanning. 3 Key Questions and Answers Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. This exhibit presents each element as an answer to an important structural question. 4 Work Specialization Work specialization: Describes the degree to which activities in the organization are subdivided into separate jobs Also known as division of labor Benefits Greater efficiency and lower costs Costs Human costs when carried too far Job enlargement as a solution Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. A key part of organizational structure is understanding the degree to which tasks are divided into separate jobs or work specialization. The division of labor is helpful in creating the most efficient way to utilize employee skills, increase their skills, and maximize their input. Work specialization can cause greater economies, but in some cases it can cause diminishing returns due to repetition that can lead to boredom. Job enlargement can be more effective at
  • 6. creating greater efficiencies than work specialization. 5 Work Specialization Economies Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. This exhibit shows economies and diseconomies of work specialization. 6 Departmentalization Departmentalization: Basis by which jobs are grouped together so that common tasks can be coordinated Common bases: Functional Product or service Geography Process and customer Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Departmentalization defines how jobs are grouped together. There are a number of options to choose from when grouping jobs; you could organize around function, product, location, process, or customer. When jobs are grouped, departments are formed. 7 Chain of Command Chain of command: Unbroken line of authority that extends from the top of the
  • 7. organization to the lowest echelon and clarifies who reports to whom Authority: positional rights Unity of command: one boss Fewer organizations find this is relevant Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The chain of command represents the line of authority present in decision making. Embedded in the chain of command is the inherent right of a manager to give orders and expect the orders to be followed. Unity of command is the idea that a subordinate should have only one superior to report to so that directions and the chain of command are clear. As organizations change, this concept is becoming less and less important. 8 Span of Control Span of control: The number of employees a manager is expected to effectively and efficiently direct Determines the number of levels and managers an organization has Trend is toward wider spans of control Wider span depends on knowledgeable employees Affects speed of communication and decision making Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Span of control looks at how many workers a manager can effectively direct towards organizational goals. Wider span allows for more efficiency because you need fewer managers. However, it can also limit the amount of time and direction
  • 8. managers can give to their employees. A narrow span can allow for more direction but can add layers of management, increase the complexity of the vertical communication, and encourage overly tight supervision, limiting employee autonomy. 9 Contrasting Spans of Control Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The exhibit illustrates that wider spans of control have fewer levels and fewer managers. 10 Centralization and Decentralization Centralization: Degree to which decision making is concentrated at a single point in the organization Only includes formal authority: positional rights Highly centralized when top managers make all the decisions Decentralized when front line employees and supervisors make decisions Trend is toward increased decentralization Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The fifth aspect of structure deals with centralization and decentralization. Centralization is the degree to which decision making is concentrated at a single point in the organization, typically at the top. Decentralization represents an organization that spreads decision making throughout the organization. 11
  • 9. Formalization Formalization: Degree to which jobs within the organization are standardized Formal: minimum discretion over what is to be done, when it is done, and how Informal: freedom to act is necessary Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Formalization is the degree to which jobs within the organization are standardized. When there is high formalization, workers have very little control over how they do their work, and they will be required to follow a number of rules and procedures. Lower formalization will tend to allow for different job behaviors to get the job done, giving workers more control over their work. 12 Boundary Spanning Boundary spanning: When individuals form relationships outside their formally assigned groups Liaison roles Development activities Job rotations Organizational goals and shared identity Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Organizations can use formal mechanisms to facilitate boundary-spanning activities through their structures. One method is to assign formal liaison roles or develop committees of individuals from different areas of the organization.
  • 10. Development activities can also facilitate boundary spanning. Employees with experience in multiple functions, such as accounting and marketing, are more likely to engage in boundary spanning. Many organizations try to set the stage for these sorts of positive relationships by creating job rotation programs so new hires get a better sense of different areas of the organization. A final method to encourage boundary spanning is to bring attention to overall organizational goals and shared identity concepts. 13 Common Organizational Designs Three common organizational frameworks: Simple structure Bureaucracy Matrix structure Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. There are a number of organizational structures available to companies. We will look at a number of options over the next several slides. 14 Simple Structure Low degree of departmentalization Wide spans of control Authority centralized in a single person Little formalization Difficult to maintain in anything other than small organizations Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
  • 11. The first and most basic structure is the simple structure. This structure has a low degree of departmentalization, wide spans of control, and centralized decision making with little formalization in job design. This structure is difficult to utilize in anything other than small organizations. 15 Bureaucracy Highly routine operating tasks achieved through specialization Formal rules and regulations Centralized authority Narrow spans of control Tasks grouped by functional departments Decision making follows the chain of command Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Another type of organizational design is bureaucracy. In a bureaucratic organization, there will be a great deal of structure. The tasks will be completed through specialization, and they tend to be formalized through rules and regulations. Departments will be highly defined by function, and authority is centralized. Decision making will follow a strict chain of command and there will be narrow spans of control. The bureaucratic organization will be one that is highly defined and very controlled. 16 Functional and Divisional Structures Functional structure: groups employees by their similar specialties, roles, or tasks Divisional structure: groups employees into units by product, service, customer, or geographic market area
  • 12. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. There are two aspects of bureaucracies we should explore: functional and divisional structures. 17 Matrix Structure Combines two forms of departmentalization Functional Product Dual chain of command Advantages: Facilitates coordination and efficient allocation of specialists Disadvantages: Possible confusion, fosters power struggles, stress Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The matrix structure is another common organizational design. This structure creates dual lines of authority and combines functional and product departments in a way to effectively meet organizational goals. The key elements of the matrix structure is that it gains the interactions between the functional and product departments by coordinating complex and interdependent activities to help reach the goals set forth in an efficient manner, opening up avenues for new ideas to achieve the company’s mission. The matrix structure also breaks down the unity-of-command concept as the lines of authority are blurred. 18 Matrix Structure for a College of Business Administration
  • 13. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. This slide shows an example of a matrix structure within a college. 19 New Design Options Virtual Organization: A small core organization that outsources its major business functions Highly centralized with little or no departmentalization Provides maximum flexibility while concentrating on what the organization does best Reduced control over key parts of the business Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Virtual organizations are developing as acceptable organizational structures. This structure offers a small core organization that outsources many of its major functions to competent suppliers. Virtual organizations are highly centralized with virtually no departmentalization to provide maximum flexibility, focusing on what the organization does best. This type of organization reduces control over some of the key parts of the business. 20 A Virtual Organization Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
  • 14. This exhibit shows a virtual organization in which management outsources all the primary functions of the business. 21 The Team Structure Team structure: Eliminates the chain of command Has limitless spans of control Replaces departments with empowered teams Breaks down geographical barriers Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Boundaryless organizations are set up to reduce the structure and tight control over work. They organize in a way to try to empower teams. They eliminate vertical and horizontal boundaries, as well as geographic boundaries. Boundaryless organizations also try to breakdown external barriers to customers and suppliers through their structure and style of communication. These organizations also break down geographical barriers. 22 The Circular Structure Circular structure: Top management is at the center of the organization with its vision spreading outward in rings grouped by function May be confusing for employees May be used to spread CSR initiatives Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Picture the concentric rings of an archery target. In the center
  • 15. are the executives; radiating outward in rings grouped by function are the managers, then the specialists, then the workers. This is the circular structure. 23 The Leaner Organization: Downsizing Downsizing: A systematic effort to make an organization leaner by selling off business units, closing locations or reducing staff Controversial because of the negative impact on employees Impact on organizational performance has been very controversial Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. In the midst of tough economic times and the need for companies to be leaner, downsizing has been on the rise. Downsizing is a systematic effort to make an organization leaner by ridding itself of a business units, excessive locations, and staff. It has been very controversial because of the strong negative impact on employees. Because of this negative impact, the link to performance enhancement has been questioned. 24 Organizational Design Models Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. This slide show two extreme models of organizational design – the mechanistic model and the organic model. Several factors, discussed next, influence which type of structure is best for an organization.
  • 16. 25 Determinants of Structure Organizational Strategy Innovation strategy: introduce new offerings-prefer organic structures Cost-minimization strategy: cost control–prefer mechanistic structures Imitation strategy: minimal risk and maximum profit–both structures used Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Structures differ for a number of reasons. The first is that structure is set up to facilitate the strategy of the organization. If your organization is focusing on innovation as a key value, then it may be best served by an organic structure. Whereas, if the strategy emphasizes minimizing costs, a mechanistic structure will work better. Strategy should always dictate structure instead of structure dictating strategy. 26 Optimal Structural Option Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Exhibit 15-7 describes the structural option that best matches each strategy. 27 More Determinants of Structure Organization Size Move toward mechanistic structure as size increases
  • 17. Technology Routine activities prefer mechanistic structures, non-routine prefer organic structures Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Structures differ for a number of reasons. The first is that structure is set up to facilitate the strategy of the organization. If your organization is focusing on innovation as a key value, then it may be best served by an organic structure. Whereas, if the strategy emphasizes minimizing costs, a mechanistic structure will work better. Strategy should always dictate structure instead of structure dictating strategy. Structures will also differ by organization size, the larger the organization, the more likely it will be mechanistic. Technology also influences structure. The more routine the activities, the more mechanistic the structure should be. 28 Still More Determinants of Structure Environment Dynamic environments lead to organic structures Capacity Volatility Complexity Institutions Act as guidelines for appropriate behavior Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Structures will also differ based on the environment in which they exist. The more dynamic the environment, the more organic the structure will need to be to facilitate quick decisions
  • 18. and fast turnaround. Finally, institutions play a role in organizational design by acting as guidelines for appropriate behavior. 29 The Environment Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Exhibit 15-8 summarizes our definition of the environment along its three dimensions. 30 Organizational Designs and Employee Behavior Cannot generalize any link between structure and performance Consider employee preferences for: Work specialization Span of control Centralization Predictability versus autonomy National culture influences organizational structure High power distance cultures accept mechanistic structures Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Organizational designs are not a good predictor of employee behavior. Research has shown that work specialization can lead to increased productivity but lower job satisfaction. Specialization has not been popular, as employees are seeking more intrinsically rewarding jobs. Span of control has mixed results depending on individual differences in employees and organizational factors. Centralization can facilitate different employee responses.
  • 19. Research suggests that national culture may influence organizational structure. In particular, organizations with people from high-power distance cultures typically find that employees are more accepting of mechanistic structures than employees from low power-distance countries. Various factors will influence workers in their job satisfaction and their willingness to stay with an organization. 31 Implications for Managers Specialization can make operations more efficient, but excessive specialization can create dissatisfaction and reduced motivation. Avoid designing rigid hierarchies that overly limit employees’ empowerment and autonomy. Balance the advantages of remote work against the potential pitfalls before adding flexible workplace options. Downsize your organization to realize major cost savings, and focus the company around core competencies-but only if necessary because downsizing can have a significant negative impact on employee affect. Consider the scarcity, dynamism, and complexity of the environment, and balance the organic and mechanistic elements when designing an organizational structure. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Structure does have an impact on both the attitudes and behaviors of the people within the organization, so it is important that managers effectively select and utilize structure within their organizations. 32 Copyright
  • 20. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.