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Basicorganizingdesigns 091228082738 Phpapp01
Basicorganizingdesigns 091228082738 Phpapp01
Basicorganizingdesigns 091228082738 Phpapp01
Organization concepts
Work specialization
Span of control
Chain of command
Authority
Staf
Functional
Responsibility
Centralization
What Is Organizational
Structure?
Organizational Structure
How job tasks are
formally divided,
grouped, and
coordinated.
Key
KeyElements:
Elements:
Work
Workspecialization
specialization
Departmentalization
Departmentalization
Chain
Chainof
ofcommand
command
Span
Spanof
ofcontrol
control
Centralization
Centralizationand
and
decentralization
decentralization
Formalization
Formalization
The Answer Is
Work specialization
Departmentalization
Span of control
Centralization
and decentralization
What Is Organizational
Structure? (contd)
Work Specialization
The degree to which tasks in the organization
are subdivided into separate jobs.
Division
Divisionof
oflabor:
labor:
Makes
Makesefficient
efficientuse
useof
ofemployee
employeeskills
skills
Increases
Increasesemployee
employeeskills
skillsthrough
throughrepetition
repetition
Increases
Increasesproductivity
productivity
Specialized
Specializedtraining
trainingisismore
moreefficient.
efficient.
Allows
Allowsuse
useof
ofspecialized
specializedequipment.
equipment.
What Is Organizational
Structure? (contd)
Departmentalization
The basis by which jobs are grouped together.
Grouping
GroupingActivities
ActivitiesBy:
By:
Function
Function
Product
Product
Geography
Geography
Process
Process
Customer
Customer
What Is Organizational
Structure? (contd)
Authority
The rights inherent in a managerial position to
give orders and to expect the orders to be
obeyed.
Chain of Command
The unbroken line of authority that extends
from the top of the organization to the lowest
echelon and clarifies who reports to whom.
Unity of Command
A subordinate should have only one superior to
whom he or she is directly responsible.
What Is Organizational
Structure? (contd)
Span of Control
The number of subordinates a manager can
efficiently and efectively direct.
Concept:
Concept:
Wider
Widerspans
spansof
ofmanagement
managementincrease
increaseorganizational
organizational
efficiency.
efficiency.
Narrow
NarrowSpan
SpanDrawbacks:
Drawbacks:
Expense
Expenseof
ofadditional
additionallayers
layersof
ofmanagement.
management.
Increased
Increasedcomplexity
complexityof
ofvertical
verticalcommunication.
communication.
Encouragement
Encouragementof
ofoverly
overlytight
tightsupervision
supervisionand
and
discouragement
discouragementof
ofemployee
employeeautonomy.
autonomy.
Contrasting Spans of
Control
What Is Organizational
Structure?
(contd)
Centralization
The degree to which decision making is
concentrated at a single point in the
organization.
Decentralization
The degree to which decision making
is spread throughout the organization.
Formalization
The degree to which jobs
within the organization are
standardized.
Departmentalization
Defined
By function
By product
By geography
By customer
By process
Functional departmentalization.
Product departmentalization.
Customer departmentalization.
Geographic departmentalization.
Process departmentalization.
Organizational designs
Simple structure
Functional structure
Divisional structure
Matrix organization
Boundaryless organization
Learning Organization
Job description
AUTHORITY
Characteristics of
Authority
Authority is vested in
organizational positions, not
people
Authority is accepted by
subordinates
Authority flows down the vertical
hierarchy
RESPONSIBILITY
ACCOUNTABILITY
DELEGATION
Delegation process
Allocation of duties
Delegation of authority
Assignment of responsibility
Creation of accountability
Efective Delegation
Barriers to Delegation
Centralization Vs
Decentralization
Centralization
It is the concentration of authority
a the top of an organization or
department
Decentralization
It is a dispersal of a high degree of
authority to lower levels of an
organization
Decentralization
Potential benefits
It frees top managers to develop
organizational plans and strategies
Contd.,
Common Organization
Designs
Simple Structure
A structure characterized by a low degree of
departmentalization, wide spans of control,
authority centralized in a single person, and
little formalization.
Common Organization
Designs (contd)
Bureaucracy
A structure of highly
operating routine tasks
achieved through
specialization, very
formalized rules and
regulations, tasks that are
grouped into functional
departments, centralized
authority, narrow spans of
control, and decision
making that follows the
chain of command.
The Bureaucracy
Strengths
Functional
economies of scale
Minimum duplication
of personnel and
equipment
Enhanced
communication
Centralized decision
making
Weaknesses
Subunit conflicts
with organizational
goals
Obsessive concern
with rules and
regulations
Lack of employee
discretion to deal
with problems
LINE AUTHORITY
STAFF AUTHORITY
Common Organization
Designs (contd)
Matrix Structure
A structure that creates dual lines of authority
and combines functional and product
departmentalization.
Key
KeyElements:
Elements:
++Gains
Gainsthe
theadvantages
advantagesof
offunctional
functionaland
andproduct
product
departmentalization
departmentalizationwhile
whileavoiding
avoidingtheir
theirweaknesses.
weaknesses.
++Facilitates
Facilitatescoordination
coordinationof
ofcomplex
complexand
and
interdependent
interdependentactivities.
activities.
Breaks
Breaksdown
downunity-of-command
unity-of-commandconcept.
concept.
Characteristics:
Characteristics:
Breaks
Breaksdown
downdepartmental
departmentalbarriers.
barriers.
Decentralizes
Decentralizesdecision
decisionmaking
makingto
tothe
theteam
teamlevel.
level.
Requires
Requiresemployees
employeesto
tobe
begeneralists
generalistsas
aswell
wellas
as
specialists.
specialists.
Creates
Createsaaflexible
flexiblebureaucracy.
bureaucracy.
A Virtual Organization
The Strategy-Structure
Relationship
Strategy
Structural Option
Innovation
Cost minimization
Imitation
Routine
Routinetechnologies
technologiesare
areassociated
associatedwith
withtall,
tall,
departmentalized
departmentalizedstructures
structuresand
andformalization
formalizationinin
organizations.
organizations.
Routine
Routinetechnologies
technologieslead
leadto
tocentralization
centralizationwhen
when
formalization
formalizationisislow.
low.
Nonroutine
Nonroutinetechnologies
technologiesare
areassociated
associatedwith
withdelegated
delegated
decision
decisionauthority.
authority.
Bureaucracy Is Dead
Characteristics of
Bureaucracies
Specialization
Formalization
Departmentalization
Centralization
Narrow spans of
control
Adherence to a chain
of command.
Why Bureaucracy
Survives
Organizational Designs
and Employee Behavior
Research
ResearchFindings:
Findings:
Work
Workspecialization
specializationcontributes
contributesto
tohigher
higheremployee
employee
productivity,
productivity,but
butititreduces
reducesjob
jobsatisfaction.
satisfaction.
The
Thebenefits
benefitsof
ofspecialization
specializationhave
havedecreased
decreasedrapidly
rapidlyas
as
employees
employeesseek
seekmore
moreintrinsically
intrinsicallyrewarding
rewardingjobs.
jobs.
The
Theeffect
effectof
ofspan
spanof
ofcontrol
controlon
onemployee
employeeperformance
performanceisis
contingent
contingentupon
uponindividual
individualdifferences
differencesand
andabilities,
abilities,task
task
structures,
structures,and
andother
otherorganizational
organizationalfactors.
factors.
Participative
Participativedecision
decisionmaking
makinginindecentralized
decentralized
organizations
organizationsisispositively
positivelyrelated
relatedto
tojob
jobsatisfaction.
satisfaction.