The document discusses different organizational structures and design approaches that can be used by managers. It describes functional, divisional, matrix, team and networking structures. It also discusses strategic options for organizations, approaches to management, and factors that influence employee satisfaction and retention. The key points covered include the characteristics of different organizational structures, how strategic options are identified, classical, behavioral and modern management approaches, and how organizational culture and employee commitment impact retention.

1. ORGANIZATIONAL STRUCTURE AND
DESIGN
Organizational Design Approaches – managers
have to make choices regarding how to group
employees together to perform their assigned
job. The five common approaches that assist
managers in determining departmental groupings
are functional, divisional, matrix, team, and
networking (Houghton Mifflin Harcourt, 2016).
Organizational design deals with constructing
and changing organizational structure to achieve
organizational goals (Mueller, 2014).

2. FUNCTIONAL STRUCTURE
Is best focused on companies
of a single product or service,
works well in a stable
environment that does not
need change (Griffin, 2018).
Positions into work units based
on similar activities, skills,
expertise, and resources .
Features channels of
communication and authority –
responsibility relationships
(Houghton Mifflin Harcourt,
2016).

3. DIVISIONAL STRUCTURE
Organization is broken down
into self-contained divisions.
Divisions are created
according to type of product
or service produced, which
operate as separate centers.
Divisions may be created
according to geographical
markets (Rappa, 2018).

4. MATRIX STRUCTURE
Reporting relationships are set
up as a grid or matrix, vice the
conventional hierarchy structure.
Increases employee motivation.
Employees have two bosses, a
functional manager and a
product manager.
Functional manager –
helps with skills, prioritize
and review work
Product manager – sets
direction on product
(Woods, 2014).

5. TEAM STRUCTURE
Groups employees performing specific tasks into teams to perform specific functions.
Enables manager to capitalize on employees strengths and minimize weaknesses.
Best coverage for product development, customer support (Duggan, 2018).

6. NETWORKING STRUCTURE
Requires selecting best players, increased flexibility and efficiency (Reference.com, 2018).
Replace hierarchy with heterarchy – meaning all members are peers and have equal power (Mueller, 2014).
Networks are a decentralization and emphasize self-managing teams.

7. DIFFERENTIATION AND GROWTH
STRATEGY
Companies should
attempt differentiation
for competitive
advantage (Khan, 2015).
Business strategy is
integral to
maintaining
advantage.
Four wide development
procedures are
expansion, product
advancement, market
infiltration, and market
improvement
(BusinessDictionary,
2018).
Growth Strategy -
directed at leading
considerable market
share, even in place
of short-term reward.

8. STRATEGIC OPTIONS AND
A MANAGEMENT
APPROACH
• Strategic options = alternative action-oriented responses to
external situations that the organization confronts.
• Takes advantage of facts, participants, trends, opportunities,
and threats from external environment.
• Options can be identified after an assessment (MDF Training
& Consultancy, 2005).
• Three generic options for organizations with less than 200
employees –
• Growth – focus on innovation
• Stasis – fine tune business
• Exit – focus on valuation (Mazzarol, 2010).

9. STRATEGIC OPTIONS AND A
MANAGEMENT APPROACH (CONT.)
• Classical Approach:
• Scientific – individual employee productivity
• Administrative – function of management
• Bureaucratic – overall organizational system
• Behavioral Approach:
• Maslow’s need theory – five step pyramid of how
people respond to what they need
• Group influences – coordination - people in direct
contact, continuous
• Theory X and Y – most people dislike work and
avoid it if possible / work is natural
• Hawthorne studies – employees reacted differently
when observed (Tibaldo, 2015).

10. STRATEGIC
OPTIONS AND A
MANAGEMENT
APPROACH
(CONT.)
• Modern Approach:
• Theory Z – employees have interest in good
work relationships, encouraged in management
decisions, long-term assets
• Total Quality Management – improving product
quality, customer satisfaction
• Management by objectives – everyone agrees to
objectives and understands what needs to happen
to accomplish goal (Tibaldo, 2015).

11. EMPLOYEE
SATISFACTION
AND
RETENTION
• Employee retention is a challenge of
organizations.
• Employees are most important asset (Anitha
& Begum, 2016).
• Variation in cultural values have a significant
effect on employee termination.
• Employee job performance and retention
varies with organizational cultural values
(Sheridan, 2017).

12. EMPLOYEE SATISFACTION AND
RETENTION (CONT.)
Employee satisfaction implies
that employees are happy,
content, and completely
engaged with their assignments
and feel that the organization
values their effort, diligence,
and expertise.
Employee retention alludes to
the time span employees
remain with an organization,
the ability for an organization
to retain its employees

13. REFERENCES
Anitha, J., & Begum, F. N. (2016). Role of organisational culture
and employee commitment in employee retention. ASBM
Journal of Management, 9(1), 17-28. Retrieved from
https://libraryresources.columbiasouthern.edu/login?url=http://s
earch.proquest.com.libraryresources.columbiasouthern.edu/docv
iew/1768170510?accountid=33337
BusinessDictionary. (2018). Growth strategy. Retrieved from
http://www.businessdictionary.com/definition/growth-
strategy.html
Duggan, T. (2018). The advantages of team-based structure.
Retrieved from http://smallbusiness.chron.com/advantages-
teambased-structure-55624.html
Griffin, D. (2018). Functional organizational structure advantages.
Retrieved from http://smallbusiness.chron.com/functional-
organizational-structure-advantages-3721.html
Houghton Mifflin Harcourt. (2016). Five approaches to
organizational design. Retrieved from
https://www.cliffsnotes.com/study-guides/principles-of-
management/organizational-design-and-structure/five-
approaches-to-organizational-design

14. REFERENCES
(CONT.)
Khan, M. M. S. (2015). The longevity of large enterprises: A study
of the factors that sustain enterprises over an extended period of
time. The Journal of Developing Areas, 49(5), 41-52. Retrieved
from
https://libraryresources.columbiasouthern.edu/login?url=http://s
earch.proquest.com.libraryresources.columbiasouthern.edu/docv
iew/1707487550?accountid=33337
Mazzarol, T. (2010). What are your strategic options? Retrieved
from https://cemi.com.au/node/92
MDF Training & Consultancy. (2005). Strategic options. Retrieved
from
https://www.sportanddev.org/sites/default/files/downloads/strate
gic_options.pdf
Mueller, J. R. (2014). Alternative organizational design and its
impact on the future of work. Journal of Strategic Innovation
and Sustainability, 9(1), 48-58. Retrieved from
https://libraryresources.columbiasouthern.edu/login?url=http://s
earch.proquest.com.libraryresources.columbiasouthern.edu/docv
iew/1535386881?accountid=33337

15. REFERENCES
(CONT.)
Rappa, F. (2018). The advantages of divisional structure in
organizations. Retrieved from
http://smallbusiness.chron.com/advantages-divisional-structure-
organizations-26170.html
Reference.com. (2018). What is a network organizational structure?
Retrieved from https://www.reference.com/business-
finance/network-organizational-structure-491fa130f3a473d2#
Sheridan, J. E. (2017). Organizational culture and employee
retention [Abstract]. Academy of Management, 35(5). Abstract
retrieved from https://journals.aom.org/doi/abs/10.5465/256539
Tibaldo, J. (2015). Management approaches. Retrieved from
https://www.slideshare.net/janettie/management-approaches
Woods, C. (2014). Matrix Organizational Structure: Advantages,
Disadvantages & Examples. Retrieved from
https://study.com/academy/lesson/matrix-organizational-
structure-advantages-disadvantages-examples.html