Organizational Design Job Design
The process by which managers
make specific organizing choices
that result in a particular kind of
organizational structure.
Factors Affecting
Organizational Structure
Organizational Culture: The shared set
of beliefs, expectations, values, and
norms that influence how members of
an organization relate to one another
and cooperate to achieve the
organization’s goals.
Adaptive cultures: values & norms
help an organization to build
momentum & to grow and change to
achieve its goals and be effective.
Inert cultures: values & norms fail to
motivate or inspire employees; they
lead to stagnation and failure.
CHAPTER 10 - MANAGING ORGANIZATION STRUCTURE AND CULTURE (JG)
Grouping Jobs into Functions & Divisions
Job Enlargement: Increasing the
number of different tasks in a
given job by changing the division
of labor
Job Enrichment: Increasing the
degree of responsibility a worker
has over his or her job
The Job Characteristics Model: five
job characteristics affect an
employee’s motivation:
Skill variety
Task identity
Task significance
Autonomy
Autonomy
ORGANIZATION STRUCTURE &
JOB DESIGN
Organization
ORGANIZATION CULTURE
Sources of an
Organization’s Culture.
Functional Structure: An organizational structure
composed of all the departments that an
organization requires to produce its goods or
services.
Divisional Structure: An organizational structure
composed of separate business units, within Product Team Structure: An organizational
which are the functions that work together to structure in which employees are
produce a specific kind of product for a specific permanently assigned to a crossfunctional
kind of customer team & report only to the product manager
Product Structure or to one of his or her direct subordinates
Market Structure
Geographic Structure
Matrix Structure: An organizational structure that
simultaneously groups people and resources by
function and by product
FUNCTIONS & DIVISIONS
Managing
COORDINATION & INTEGRATION
Hierarchy of Authority: An Integrating Mechanisms: Organizing tools
organization’s chain of command, to increase communication & coordination.
specifying the relative authority of each Types of Integrating Mechanisms:
manager.
Tall & Flat Organization: A tall organization
has many levels of authority relative to
company size; a flat organization has
fewer levels relative to company size
Minimum chain of command
Centralization & decentralizing authority:
Giving lower-level managers and
nonmanagerial employees the right to
make important decisions about how to
use organizational resources.
Diva Tertia Almira - Batch 78 Class A (470320)
 CHAPTER 11 - Organization Control and Change (JG)
Financial Measures of Performance
Three Types of Control The Importance of
Organizational Control
It helps managers obtain
superior efficiency, quality,
responsiveness to customers,
and innovation—the four
building blocks of competitive
advantage
Four Steps in
Organizational Control
Importance,
Types &
Process
Diva Tertia Almira - Batch 78 Class A (470320)
Profit ratios measure how Organizational Goals
efficiently managers are using the Organizationwide Goal Setting:
organization’s resources to
generate profits.
Liquidity ratios measure how well
managers have protected
organizational resources to be able
to meet short-term obligations.
Leverage ratios measure the
degree to which managers use
debt (borrow money) or equity
(issue new shares) to finance
ongoing operations. Operating Budgets
Output A budget that states how managers
Activity ratios show how well
managers are creating value from Control intend to use organizational resources to
organizational assets. achieve organizational goals.

Clan Control

Organizational Change
The movement of an organization away
from its present state and toward some
preferred future state to increase its
efficiency and effectiveness
Evolutionary Change
Change that is gradual, incremental,
and narrowly focused
Revolutionary Change
Change that is rapid, dramatic, and
broadly focused.
Lewin’s Force-Field Theory of Change
A wide variety of forces arise from the
way an organization operates—from
its structure, culture, and control systems
—that make organizations resistant to
change
Organization
Control & Change
Organizational Behavior
Change Control
Direct Supervision
Steps in the Organizational Change Process The most immediate and potent form
of behavior control is direct
supervision by managers who actively
monitor and observe the behavior of
their subordinates, teach subordinates
the behaviors that are appropriate and
inappropriate, & intervene to take
corrective action as needed.
Bureaucratic control
Control of behavior by means of a
comprehensive system of rules &standard
operating procedures.
Clan
The control exerted on
individuals & groups in
Control an organization by
shared values, norms
standards of behavior,
& expectations.
Management by Objectives (MBO)
A goal-setting process in which a manager
and each of his or her subordinates
negotiate specific goals and objectives for
the subordinate to achieve and then
periodically evaluate the extent to which
the subordinate is achieving those goals.
Steps:
1. Specific goals are established at each
level of the organization
2. Managers & their subordinates
together determine the goals
3. Managers and their subordinates
periodically review the subordinates’
progress toward meeting goals