French and Raven identified five sources, or bases, of power: coercive, reward, legitimate, expert, and referent. We summarize them inExhibit 5-6.
+ Organizational Structure and Culture
+ What is Organization Design? A process for improving the probability that an organization will be successful.
+ What Is Organizing? Organizing The function of management that creates the organization’s structure Organizational Design When managers develop or change the organization’s structure Work Specialization Dividing work activities into separate job tasks; also called division of labor
+ What Is Departmentalization? Departmentalization How jobs are grouped together OR refers to the process of grouping activities into departments. Functional Departmentalization Grouping activities by functions performed for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations. Product Departmentalization Grouping activities by major product areas or by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager.
+ Departmentalization (cont.) Customer Departmentalization Grouping activities by customer ,The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists. The sales activities in an office supply firm can be broken down into three departments that serve retail, wholesale and government accounts Geographic Departmentalization Grouping activities on the basis of geography or territory, it can group jobs based on geography. Process Departmentalization Grouping activities on the basis of work or customer flowBecause each process requires different skills, For example, the applicants might need to go through several departments namely validation, licensing and treasury, before receiving the driver’s license.
+ What Are Authority and Responsibility? Chain of Command The line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom Authority The rights inherent in a managerial position to give orders and expect the orders to be done. Responsibility An obligation to perform assigned duties
+ What are Different Types of Authority Relationships? Line Authority Authoritythat entitles a manager to direct the work of an employee Staff Authority Positions with some authority that have been created to support, assist, and advise those holding line authority
+ What is Power? Authority goes with the job, but Power refers to an individual’s capacity to influence decisions. Authority is part of the larger concept of power
+ Power resources in interpersonal communication A power resource is anything that enables individuals to achieve their goals, assists others to achieve their goals ,There are several different types of power resources: A legitimate authority is someone who is perceived to have a right to direct others behavior because of his or her position, title, role, experience, or knowledge Information Power derived from possession of important information at a critical time when such information is necessary to organizational functions
+ Power resources in interpersonal communication Expertise Power based on one person perceiving that the other person has expert knowledge of a given subject and is a recognized authority in a given situation. Reward Power Reward is a power source that acts as a double-edged sword by either assisting an individual in achieving their goal or interfering with their goal. coercive power is dependent on fear, and use of punishment or threat, for its existence.
+ What Is Span of Control? Span of Control The number of employees a manager can efficiently and effectively supervise
+ How Does Technology Affect Structure? Unit Production The production of items in units or small batches Mass Production Large-batch manufacturing Process Production Continuous flow of products being produced
+ Types of Organizational Designs I. Traditional Designs Simple Structure is defined as a design with low departmentalization, wide spans of control, centralized authority, and little formalization. This type of design is very common in small start up businesses. For example in a business with few employees the owner tends to be the manager and controls all of the functions of the business. Functional Structure An organizational design that groups similar or related occupational specialties together Divisional Structure An organizational structure made up of separate business units or divisions. A manager oversees their division and is completely responsible for the success or failure of the division. This gets managers to focus more on results knowing that they will be held accountable for them.
+ Types of Organizational Designs (cont.) II. Contemporary Designs Team Structure A team structure is a design in which an organization is made up of teams, and each team works towards a common goal. Since the organization is made up of groups to perform the functions of the company, teams must perform well because they are held accountable for their performance. In a team structured organization there is no hierarchy or chain of command. Therefore, teams can work the way they want to, and figure out the most effective and efficient way to perform their tasks. Teams are given the power to be as innovative as they want. Some teams may have a group leader who is in charge of the group.
+ Types of Organizational Designs (cont.) Matrix Structure A matrix structure is one that assigns specialists from different functional departments to work on one or more projects. In an organization there may be different projects going on at once. Each specific project is assigned a project manager and he has the duty of allocating all the resources needed to accomplish the project. . Project Structure A project structure is an organizational structure in which employees continuously work on projects. This is like the matrix structure; however when the project ends the employees don’t go back their departments. They continuously work on projects in a team like structure. Each team has the necessary employees to successfully complete the project. Each employee brings his or her specialized skill to the team. Once the project is finished then the team moves on to the next project.
+ Today’s Organizational Challenges Learning Organization An organization that has developed the capacity to continuously learn, adapt, and change A learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself
+ What is Organizational Culture? Organizational Culture The shared values, principles, traditions, and ways of doing things that influence the way organizational members act is the collective behavior of humans who are part of an organization and the meanings that the people attach to their actions. Culture includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits. It is also the pattern of such collective behaviors that are taught to new organizational members as a way of perceiving, and even thinking and feeling