Basic Organization Designs

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Chapter 5

• Basic Organization Designs
• ??????

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Organization Design and Structure

• Organization design????
• A process in which managers develop or change
  their organizations structure
• Work specialization?????
• A component of organization structure that
  involves having each discrete step of a job done
  by a different individual rather than having one
  individual do the whole job??????????????,????????
  ???,??????????????

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Economies and Diseconomies of Work Specialization
EXHIBIT 5.1
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Organizational Structure Control

• Chain of command???
• The continuous line of authority that extends
  from upper organizational levels to the lowest
  levels and clarifies who reports to whom.
• Unity of Command
• The management principle that no person should
  report to more than one boss??????????????????????
  ??
• Span of control????
• The number of subordinates a manager can direct
  efficiently and effectively????????????????????

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EXHIBIT 52 Chain of Command
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Organizational Structure Control (contd)

• Authority??
• The rights inherent in a managerial position to
  give orders and expect them to be
  obeyed??????????????,?????????????????
• Responsibility??
• An obligation to perform assigned
  activities????????,?????????????????
• Power??
• An individuals capacity to influence
  decisions??????????

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Types of Organizational Authority

• Line authority????
• The position authority (given and defined by the
  organization) that entitles a manager to direct
  the work of operative employees????????????????
• Staff authority????
• Positions that have some authority (e.g.,
  organization policy enforcement) but that are
  created to support, assist, and advise the
  holders of line authority?????????????????????

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Chain of Command
EXHIBIT 5.2
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Line Versus Staff Authority
EXHIBIT 5.3
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Authority Versus Power
A. Authority
EXHIBIT 5.4a
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Authority Versus Power (contd)
EXHIBIT 5.4b
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Types of Power
Coercive power Power based on fear. ???? Reward
power Power based on the ability to
distribute???? something that others
value. Legitimate power Power based on ones
position in the???? formal hierarchy. Expert
power Power based on ones expertise,
???? special skill, or knowledge. Referent
power Power based on identification with
a???? person who has desirable resources
or personal traits.??????????
EXHIBIT 5.5
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Centralization And Decentralization

• Centralization??
• A function of how much decision-making authority
  is pushed down to lower levels in an
  organization the more centralized an
  organization, the higher the level at which
  decisions are made
• Decentralization??
• The pushing down of decision-making authority to
  the lowest levels of an organization

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Departmentalization???

• Functional??departmentalization
• The grouping of activities by functions performed
• Product??departmentalization
• The grouping of activities by product produced
• Customer??departmentalization
• The grouping of activities by common customers
• Geographic??departmentalization
• The grouping of activities by territory
• Process??departmentalization
• The grouping of activities by work or customer
  flow

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Mechanistic and Organic Organizations

• Mechanistic ???organization
• The bureaucracy a structure that is high in
  specialization, formalization, and centralization
• Organic ???organization
• An adhocracy a structure that is low in
  specialization, formalization, and centralization

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Mechanistic versus Organic Organizations

• Collaboration (both vertical and horizontal)
• Adaptable duties
• Few rules
• Informal communication
• Decentralized decision authority
• Flatter structures

• Rigid hierarchical relationships
• Fixed duties
• Many rules
• Formalized communication channels
• Centralized decision authority
• Taller structures

EXHIBIT 5.7
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?????????

• ?5-11

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Structure follows???????

• Strategy
• Organization Size
• Technology
• Environment

• ??
• ????
• ??
• ??

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Technology and Structure

• Unit production
• Production in terms of units or small batches
• Mass production
• Production in terms of large batch manufacturing
• Process production
• Production in terms of continuous processing

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Organization Design Applications

• Simple ??structure
• An organization that is low in specialization and
  formalization but high in centralization
• Bureaucracy????
• Functional ?? structure
• An organization in which similar and related
  occupational specialties are grouped together
• Divisional ??? structure
• An organization made up of self-contained units

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Functional Structure
EXHIBIT 5.8
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Divisional Structure
EXHIBIT 5.9
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Other Organizational Structures

• Matrix??? structure
• An organization in which specialists from
  functional departments are assigned to work on
  one or more projects led by a project manager
• Team-based?????? structure
• An organization that consists entirely of work
  groups or teams
• Boundaryless ???organization
• An organization that is not defined or limited by
  boundaries or categories imposed by traditional
  structures

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Sample Matrix Structure
EXHIBIT 5.10
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Learning ???Organization

• An organization that has developed the capacity
  to continuously adapt and change because all
  members take an active role in identifying and
  resolving work-related issues.
• Organization design
• Information sharing
• Leadership
• Organizational culture

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Characteristics of a Learning Organization
EXHIBIT 5.11
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Organization Culture????

• A system of shared meaning within an organization
  that determines, to a large degree, how employees
  act
• Shared values are shown in cultural elements
• Stories, rituals, material symbols, and language
  unique to the organization
• Results from the interaction between
• The founders biases and assumptions
• What the first employees learn subsequently from
  their own experiences.

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Ten Characteristics of Organization Culture

• Member identity
• Group emphasis
• People focus
• Unit integration
• Control

• Risk tolerance
• Reward criteria
• Conflict tolerance
• Means-end orientation
• Open-systems focus

EXHIBIT 5.12
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Homework 3 ???????

• ??????
• ??????????
• ??????????(???????,Mechanistic Vs. Organic????)
• ????
• ?????????????,????????(Job description)
• ??????????(Job specification)
• ??????(Recruiting sources)
• ????(Selection)?????
• ???????????????(Reliability)???(validity)??