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Organizational Structure and Design
- 2. Report Outline • Elements and Importance of Organizational Structure • Designing the Proper Structure • Common Organizational Design • Why Do Structures Differ? • Organizational Design and Employee Behavior • Summary and Conclusion ORGANIZATIONAL STRUCTURE and DESIGN
- 3. LEARNING OBJECTIVE Identify the six elements of an organization’s structure Identify the characteristics of bureaucracy Describe a matrix organization Show why managers want to create boundaryless organizations Demonstrate how organizational structures differ, and contrast mechanistic and organic structural models Analyze the behavioral implications of different organizational design
- 4. Organizational Structure: Elements and Importance KEY ELEMENTS Work specialization Departmentaliza tion Chain of Command Span of Control Centralization and Decentralization Formalization
- 5. Organizational Structure: Designing the Proper Structure
- 6. Organizational Structure: Common Organizational Design • Low degree of departmentalization • Wide spans of control • Authority Centralization to one person • Little formalization Simple Structure • High specialization • Very formalized rules and regulations • Functional Departmentalization • Centralized authority • Narrow span of control • Decision making that follows the chain of command Bureaucracy • Dual lines of authority • Combines functional and product departmentalization Matrix Structure • VIRTUAL ORGANIZATION • BOUNDARYLESS ORGANIZATION New Design Options
- 7. How willing are you to work in a bureaucratic organization? Every revolution evaporates and leaves behind only the slime of a new bureaucracy. —Franz Kafka
- 8. Organizational Structure: why do structures differ? Organizatio nal Strategy • Structure is designed to help achieve the company’s overall objectives • Focus of strategy framework: (1) Innovation (2) cost minimization (3) imitation Organizatio n Size • Organizations that employ 2,000 or more people tend to have more specialization, more departmentalization, more vertical levels, and more rules and regulations than do small organizations. Technology • describes the way an organization transfers inputs into outputs. • The use of technology defined the degree of routineness of activities in an organization. Environme nt • An organization’s environment includes outside forces that can affect its performance. • organization’s environment has three dimensions: (1) capacity, (2) volatility, and (3) complexity
- 9. Organizational Structure: Organizational Design and Employee Behavior No general effect Different factors stand out in different structures no evidence supports a relationship between span of control and employee satisfaction or performance fairly strong evidence linking centralization and job satisfaction Work specialization contributes to higher productivity but reduce job satisfaction
- 10. Organizational Structure: SUMMARY AND CONCLUSION VISION ORGANIZATIONAL STRUCTURE Simple structure Bureaucracy Virtual Boundaryless Matrix structure
- 11. Acknowledgement Stephen Robins and Timothy Judge, “Organizational Behavior (Fifth Edition)”, pp. 479-502 Alanis Business Academy, “Weber’s Bureaucratic Management”, https://www.youtube.com/watch?v=4yI1gytXQGs
- 12. Thank you and have a great day!
Editor's Notes
- At the end of the discussion we should be able to: --------- But before that, let’s have a little exchange of opinion about bureaucracy
- So.. After watching the video, who among us now, is willing to work in a bureaucratic organization?
- Simple – flat virtual – small, core organization that outsources business functions Bureaucracy – Standardization boundaryless – an organization that seeks to eliminate the chain of command, have limitless spans of control and replace Matrix – complex / combination departments with empowered teams The goal of the new organizational forms we’ve described is to improve agility by creating a lean, focused, and flexible organization. Downsizing is a systematic effort to make an organization leaner by closing locations, reducing staff, or selling off business units that don’t add value.
- So.. After watching the video, who among us now, is willing to work in a bureaucratic organization?