Management (Organization Design & Its Perspective)
& Its Perspective
Identify the basic nature of organization
Identify the two basic universal perspectives
on organization design.
The Nature of Organization Design:
The overall set of structural elements and the relationships among those
elements used to manage the total organization.
A means to implement strategies and plans to achieve organizational goals.
Organization Design Concepts:
Organizations are not designed and then left intact. Organizations are in a
continuous state of change.
Organization design for larger organizations is extremely complex and has
many nuances and variations.
Universal Perspectives on
Bureaucratic Model (Max Weber)
According to Max Weber, a German sociologist, a bureaucracy is
defined as an organization founded on a legitimate and formal
system of authority.
A logical, rational, and efficient organization design based on a
legitimate and formal system of authority.
Adopt a division of labor with each position filled by an expert.
create a hierarchy of position so that the scalar chain of command runs
from top to bottom in the organization.
Establish a hierarchy of positions, which creates a chain of command
runs from top to bottom in the organization.
All managers should conduct business in an impersonal
manner, maintaining an appropriate social distance from their
Establish specific personnel policies and practices to ensure that
employment and promotion in the organization is based on expertise
Efficiency in function due to well-defined practices and procedures.
Organizational rules prevent favoritism.
Recognition of and requirement for expertise stresses the value of an
Organizational inflexibility and rigidity due to rules and procedures.
Neglects the social and human processes within the organization.
Belief in “one best way” to design an organization does not apply to all
organizations and their environments.
Behavioral Model: Likert System
Organizations that pay attention to work groups and interpersonal
processes are more effective than bureaucratic organizations.
Universal approach that recognized the weakness and limitations
of the rational and mechanistic characteristics of bureaucratic
Likert’s System 4 Organization
Rensis Likert discovered critical relationships between organization
design and effectiveness. His research dealt with eight characteristics
The leadership process
The motivation process
The communication process
The interaction process
The decision process
The goal setting process
The control process
Likert concluded that the managers should adopt what he called as
system 4 approach to the organization design.
System 4 was a behavioral approach that emphasized on supporting
relationships, practiced group decision making, and established high-
Emphasis on behavioral process of organization.
• This approach was founded on the premise that there is only “one best way”
to design organizations, while it seems to be abundantly clear that there is no