Defining organizational structure ; Explain why organizing Is Important ; Identify the six key elements used in designing an organization’s structure ; Discuss the traditional and contemporary view of work specialization. ; Describe each of the five forms of differentiations. ; Explain cross-functional teams. ; Differentiate chain of command, authority, responsibility, and unity of command. ; Discuss the traditional and contemporary views of chain of command. Control. E (cont’d) Follow this Learning Outline as you read and study this chapter. 0 Defining organizational structure (cont’d) Describe the factors influence the amount of centralization and decentralization. Explain how formalization is used in organizational design. 0 Organizational design decisions Contrast mechanistic and organic organizations. Explain the relationship between strategy and structure. Tell how organizational size affects organizational design. Discuss Woodward’s findings on the relationship of technology and structure.
Explain how environmental uncertainty affects organizational design. 0 Common organizational designs ; Contrast the three traditional organizational designs. ; Explain team-based, matrix, and project structures. Discuss the design of virtual, network, and modular organizations. ; Describe the characteristics of a learning organization. 5 Defining organizational structure and design Organizational structure The formal arrangement of Jobs within an organization.
Organizational design A process involving decisions about six key elements: Work specialization Differentiations Chain of command Span of control centralization and decentralization 6 Work specialization The degree to which tasks in the organization are divided into separate Jobs with each step completed by a different person. Personalization can result in human discomposes from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover. Differentiations by type Functional Grouping Jobs by functions performed Product product line Geographic Process Grouping Jobs on the basis of product or customer flow Customer Grouping Jobs by type of customer and needs basis of territory or geography 8 Functional differentiations ; Advantages ; Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations ; Coordination within functional area ; In-depth specialization Disadvantages ; Poor communication across functional areas ; Limited view of organizational goals Figure Geographical differentiations ; More effective and efficient handling of specific regional issues that arise ; Serve needs of unique geographic markets better ; Duplication of functions ; Can feel isolated from other organizational areas 10 Product differentiations + Allows specialization in particular products and services + Managers can become experts in their industry + Closer to customers – Duplication of functions – Limited Source: Bombardier Annual view Report. Of organizational goals 1 Process differentiations + More efficient flow of work activities – Can only be used with certain types of products 12 Customer differentiations + Customers’ needs and problems can be met by specialists – Limited view of organizational goals 13 Organization structure (cont’d) The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to who. 4 Authority Responsibility what to do and to expect them to do it. The obligation or expectation to perform. Unity of command The concept that a person should have one boss and would report only to that person. 15 The number of employees who can be effectively and efficiently supervised by a manager. Width of span is affected by: Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks Physical proximity of subordinates Standardization of tasks Contrasting spans of control Figure 10. 3 17 Centralization The degree to which decision-making is concentrated at a single point in the organizations.
Decentralization organizations in which top managers make all the decisions and lower-level employees simply carry out those orders. Organizations in which decision-making is pushed down to the managers who are closest to the action. Employee Empowerment Increasing the decision-making, 18 Factors that influence the amount of More Centralization Environment is stable. Lower-level managers are not as capable or experienced at making decisions as upper-level managers. Lower-level managers do not want to have a say in decisions. Decisions are significant. organization is facing a crisis or the risk of company failure. Company is large.