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8 9

  1. 1. ORGANIZATION STRUCTURE ANDDESIGNChapter 8
  2. 2. WHAT IS ORGANIZING AS A MANAGERIALRESPONSIBILITY?
  3. 3.  Organizing is one of the management functions Organizing arranges people and resources to work towards a goal Organization Charts describe the formal structures of organizations Organization structure – a system of tasks, reporting relationships and communication linkages Organization chart – describes the arrangement of work positions within an organization Division of labor – people and groups perform different jobs Formal structure – official structure of the organization
  4. 4.  Organizations also operate with informal structures Informal structure – set of unofficial relationships among members of an organization Social network analysis – identifies the informal structures and their embedded social relationships that are active in an organization
  5. 5.  Informal structures have good points and bad points
  6. 6. WHAT ARE THE MOST COMMON TYPES OFORGANIZATIONAL STRUCTURES? Departmentalization – process of grouping together jobs and people into work units Functional structures group together people using similar skills Functional chimneys/ functional silos problem – lack of communication and coordination across functions
  7. 7.  Divisional Structures group together people by products, customers or locations
  8. 8.  Product structure – groups together people and jobs working on a single product or service Geographical structure – brings together people and jobs performed in the same location Customer structure – groups together people and jobs that serve the same customers or clients
  9. 9.  Matrix Structures combine functional and divisional structures Cross-functional team – brings together members form different functional departments
  10. 10.  Team structures use many permanent and temporary terms
  11. 11.  Network structures extensively use strategic alliances and outsourcing
  12. 12.  Virtual organization – uses information technologies to operate as a shifting network of alliances
  13. 13. WHAT ARE THE TRENDS IN ORGANIZATION DESIGN? Organization design – the process of configuring organizations to meet environmental challenges Organizations become flatter, with fewer levels of management Span of control – the number of persons directly reporting to a manager
  14. 14.  Organizations are increasing decentralization Centralization – top management keeps power to make most decisions Decentralization – top management allows lower levels to help make many decisions Organizations are increasing delegation and empowerment Delegation – process of entrusting work to others
  15. 15.  Organizations are becoming more horizontal and adaptive Bureaucracy- emphasizes formal authority, rules, order, fairness and efficiency Mechanistic designs – bureaucratic, using a centralized and vertical structure Organic designs – adaptive, using a decentralized, horizontal structure
  16. 16.  Organizations are using more alternative work schedules Compressed workweek – allows a worker to complete a full-time job in less than 5 days Flexible working hours – gives employees some choice in daily work hours Telecommuting – involves using IT to work at home or outside the office Job sharing –splits one job between two people
  17. 17. ORGANIZATIONAL CULTURES,INNOVATION AND CHANGEChapter 9
  18. 18. WHAT IS THE NATURE OF ORGANIZATIONALCULTURE? Organizational culture is the personality of the organization Organizational culture – system of shared beliefs and values guiding behavior Organizational culture shapes behavior and influences performance Strong cultures – clear, well defined and widely shared among members Socialization – a process through which new members learn the culture of an organization
  19. 19.  The observable culture is what you see and hear as an employee or customer
  20. 20.  The core culture is found in the underlying values of an organization Core values – are beliefs and values shared by an organization Value-based management supports a strong organizational culture Value-based management – actively develops, communicates and enacts shared values Symbolic leader – uses language and symbols and actions to establish and maintain a desired organizational culture Workplace spirituality – involves practices that create meaning and shared community among members
  21. 21. HOW DO ORGANIZATIONS SUPPORT AND ACHIEVEINNOVATION? Innovation – process of taking in an idea and putting it into practice Organizations pursue process, product and business model innovations Process innovations –result in better ways of doing things Product innovations– result in new or improved goods or services Business model innovations – result in ways for firms to make money
  22. 22.  Green innovations pursue and support the goals of sustainability Green innovation/ sustainable innovation – reduces the carbon footprint of an organization and its products Social innovation seeks solutions to important societal problems Social innovation is business innovation driven by a social conscience Social entrepreneurship – pursues innovative ways to solve pressing social problems
  23. 23.  Commercializing innovations turn new ideas into saleable products Reverse innovation – recognizes the potential for valuable innovations to be launched form lower organizational levels and diverse locations, including emerging markets
  24. 24.  Innovative organizations share many common characteristics Skunkworks – special creative units set free from normal structure for the purpose of organization
  25. 25. HOW DO MANAGERS LEAD THE PROCESS OFORGANIZATIONAL CHANGE? Change leader tries to change the behavior of another person or social system
  26. 26.  Organizations pursue both transformational and incremental changes Transformational change – results in major and comprehensive redirection of the organization Incremental change – bends and adjusts existing ways to improve performance
  27. 27.  Three phases of planned change are unfreezing, changing and refreezing Unfreezing – a phase during which a situation is prepared for a change Changing – a phase where a planned change actually takes place Refreezing – phase in which a change is stabilized
  28. 28.  Managers use force-coercion, rational persuasion, and shared power change strategies Force-coercion strategy – pursues change through formal authority and/ or use of rewards or punishments Shared power strategy - pursues change by participation
  29. 29.  Change leaders identify and deal positively with resistance to change

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