This document discusses key concepts related to organizational structure and culture. It defines organizational design as a process to improve organizational success. It also defines organizing, departmentalization, authority, responsibility, power, and different types of organizational designs including functional, divisional, team, matrix and project structures. The document notes that organizational culture includes shared values, principles, traditions and behaviors that influence how members act. It also discusses challenges like creating a learning organization.

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Organizational Structure and Culture

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What is Organization Design?
 A process for improving the probability that an
organization will be successful.

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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

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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.

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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.

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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

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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

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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

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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

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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.

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What Is Span of Control?
Span of Control
 The number of
employees a
manager can
efficiently and
effectively
supervise

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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

17. + 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.

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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.

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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.

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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

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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