Description
This is a PPT on What Is Organizational Structure?, Common Organizational Designs, New Design Options, Why Do Structures Differ?, and Recent Trends in organizational designs.
ORGANIZATION STRUCTURE AND RECENT TRENDS
CONTENTS
What Is Organizational Structure? ? Common Organizational Designs. ? New Design Options. ? Why Do Structures Differ? ? Recent Trends.
?
ORGANIZATION STRUCTURE
?
?
The formal configuration between individuals and groups with respect to the allocation of tasks, responsibilities, and authorities within organizations. Six Key Elements ? Work Specialization ? Departmentalization ? Chain of Command ? Span of Control ? Centralization and Decentralization ? Formalization
WORK SPECIALIZATION
?
The Degree To Which Tasks In The Organization Are Subdivided Into Separate Jobs. Individuals Specialize In Doing Part of Job.
?
DEPARTMENTALIZATION
•
•
• • • • •
The Basis By Which Jobs Are Grouped Together. Popular Way Is By Functions Performed. Achieves Economies Of Scale. By The Type Of The Product. Increased Accountability For Product Performance. Geography Or Territory. Process.
FUNCTIONAL ORGANIZATION
6
PRODUCT ORGANIZATION
7
CHAIN OF COMMAND
?
An Unbroken Line Of Authority From Top To Bottom. Authority Refers To The Rights Inherent In A Managerial Position To Give Orders And Expect The Orders To Be Obeyed. A Subordinate Should Have Only One Superior To Whom He Or She Is Directly Responsible.
?
?
MODERN TRENDS: DELAYERING
As today’s organizations restructure, the middle layers of organizational hierarchies tend to get removed. The result is a flatter organizational structure, which puts managers closer to the issues about which they have to make decisions.
© Copyright 2003, Prentice Hall
9
SPAN OF CONTROL
The Number of Subordinates A Manager Can Efficiently And Effectively Direct. ? Determines Number of Levels And Managers An Organization Has. ? Small Span(5-6 Employees) ? Large Span(10-12 Employees) ? Two Types of Organization:? Tall ? Flat
?
TALL VS. FLAT ORGANIZATIONS
CENTRALIZATION AND DECENTRALIZATION
?
The Degree To Which Decision Making Is Concentrated At A Single Point In The Organization. Decision Discretion Is Pushed Down To Lower Level Employees.
?
DECENTRALIZATION
Low Decentralization High Decentralization
Eliminates the additional responsibility not desired by people performing routine jobs. ? Permits crucial decision to be made by ‘big picture’ people.
?
Can eliminate the levels of management, making the linear organization ? Promotes greater opportunity for decision to be made by the people closer to organization.
?
FORMALIZATION
?
Refers To The Degree To Which Jobs Within The Organization Are Standardized. Highly Formalized Jobs Reduces Complexity. Eliminates Possibility of Employees Engaging In Alternative Behaviors.
?
?
?
Removes The Need For Employees To Consider Alternatives.
ORGANIZATIONAL DESIGNS
The process of coordinating the structural elements of an organization in the most appropriate manner.
? Approaches
? ?
include
Classical and Neoclassical Approaches The Contingency Approach
CLASSICAL VS. NEOCLASSICAL THEORY
Classical Organizational Theory: The approach that assumes
that there is a single best way to design organizations.
?
This approach assumes that managers need to have close control over their subordinates and calls for designing organizations with tall hierarchies and a narrow span of control.
Neoclassical Organizational Theory: An attempt to improve
on the classical organizational theory that argues that not only economic effectiveness, but also employee satisfaction, should be goals of an industrial organization.
?
This approach assumes that managers do not have to carefully monitor their subordinates and calls for designing organizations with flat hierarchies and a wide span of control.
CLASSICAL VS. NEOCLASSICAL THEORY
THE CONTINGENCY APPROACH
?
The contemporary approach that recognizes that no one approach to organizational design is best, but that the best design is the one that best fits with the existing environmental conditions. Mechanistic Organization: An internal organizational structure in which people perform specialized jobs, many rigid rules are imposed, and authority is vested in a few top-ranking officials. Organic Organization: An internal organizational structure in which jobs tend to be very general, there are few rules, and decisions can be made by lower-level employees.
?
?
DESIGN EFFECTIVENESS
COMMON ORGANIZATIONAL DESIGNS
?
Simple Structure The Bureaucracy
?
?
The Matrix Structure
SIMPLE STRUCTURE
?
Low Degree of Departmentalization. Wide Span of Control.
?
?
Authority In One Hand.
Little Formalization.
?
THE BUREAUCRACY
•
• •
• • •
Highly Routine Operative Tasks Achieved Through Specialization. Very Formalized Rules And Regulations. Tasks That Are Grouped Into Functional Departments. Centralized Authority. Narrow Span of Control. Decision Making Following The Chain of Command.
MATRIX STRUCTURE
?
Creates Dual Lines of Authority. Combines Functional And Product Departmentalization.
?
MATRIX ORGANIZATION STRUCTURE
24
NEW DESIGN OPTIONS
?
The Team Structure The Boundaryless Organization Modular organization Virtual organization Feminine Organization
? ? ?
?
THE TEAM STRUCTURE
•
• • •
•
Use of Teams As Central Device To Coordinate Work Activities. Breaks Down Departmental Barriers. Decentralizes Decision Making. Requires Employees to Be Generalist As Well As Specialist. Achieves Efficiency of Bureaucracy’s Standardization And Gains The Flexibility That Team Provides.
BOUNDARYLESS ORGANIZATION
An organization in which chains of command are eliminated, spans of control are unlimited, and rigid departments give way to empowered teams. Modular Organization: An organization that surrounds itself by a network of other organizations to which it regularly outsources noncore functions.
Virtual Organization: A highly flexible, temporary organization formed by a group of companies that join forces to exploit a specific opportunity.
BOUNDARYLESS ORGANIZATION
MODULAR ORGANIZATION
VIRTUAL ORGANIZATION
THE FEMININE ORGANIZATION
Members Are Valued As Individual Humans. ? Nonopportunistic. ? Careers Defined In Terms of Services. ? Commitment To Employee Growth. ? Creation of Caring Community. ? Power Sharing.
?
WHY DO STRUCTURES DIFFER?
Strategy ? Organization Size ? Technology ? Environment
?
STRATEGY
Means To Help Management Achieve Its Objectives. ? A Strategy That Emphasizes The Introduction of Major New Products And Services. ? Cost Minimization Strategy. ? Imitation Strategy.
?
Organization Size
?
Organization Size Matters While Deciding Organization Structure.
TECHNOLOGY
?
Refers To How An Organization Transfers Its Inputs Into Outputs. The Common Theme of Differentiating Technologies Is Their Degree of Routineness.
?
ENVIRONMENT
?
?
Those Institutions or Forces Outside The Organization That Potentially Affect The Organization’s Performance. Three Key Dimensions ? Capacity ? Volatility ? Complexity
INFERENCES
?
?
?
?
?
?
The Structure Is Dictated By Organization’s Objectives. Organization Is Very Keen To Follow Very Flexible Structure. Classical, Functional And Departmentation Criteria Coexist. Structure At The Lower Echelon Is Very Flexible But Becomes Rigid As Move Upwards. The Structure Is Very Dynamic And Reactive To Business Environment. The Structure Is Very Proactive Towards Contingencies.
doc_632135311.pptx
This is a PPT on What Is Organizational Structure?, Common Organizational Designs, New Design Options, Why Do Structures Differ?, and Recent Trends in organizational designs.
ORGANIZATION STRUCTURE AND RECENT TRENDS
CONTENTS
What Is Organizational Structure? ? Common Organizational Designs. ? New Design Options. ? Why Do Structures Differ? ? Recent Trends.
?
ORGANIZATION STRUCTURE
?
?
The formal configuration between individuals and groups with respect to the allocation of tasks, responsibilities, and authorities within organizations. Six Key Elements ? Work Specialization ? Departmentalization ? Chain of Command ? Span of Control ? Centralization and Decentralization ? Formalization
WORK SPECIALIZATION
?
The Degree To Which Tasks In The Organization Are Subdivided Into Separate Jobs. Individuals Specialize In Doing Part of Job.
?
DEPARTMENTALIZATION
•
•
• • • • •
The Basis By Which Jobs Are Grouped Together. Popular Way Is By Functions Performed. Achieves Economies Of Scale. By The Type Of The Product. Increased Accountability For Product Performance. Geography Or Territory. Process.
FUNCTIONAL ORGANIZATION
6
PRODUCT ORGANIZATION
7
CHAIN OF COMMAND
?
An Unbroken Line Of Authority From Top To Bottom. Authority Refers To The Rights Inherent In A Managerial Position To Give Orders And Expect The Orders To Be Obeyed. A Subordinate Should Have Only One Superior To Whom He Or She Is Directly Responsible.
?
?
MODERN TRENDS: DELAYERING
As today’s organizations restructure, the middle layers of organizational hierarchies tend to get removed. The result is a flatter organizational structure, which puts managers closer to the issues about which they have to make decisions.
© Copyright 2003, Prentice Hall
9
SPAN OF CONTROL
The Number of Subordinates A Manager Can Efficiently And Effectively Direct. ? Determines Number of Levels And Managers An Organization Has. ? Small Span(5-6 Employees) ? Large Span(10-12 Employees) ? Two Types of Organization:? Tall ? Flat
?
TALL VS. FLAT ORGANIZATIONS
CENTRALIZATION AND DECENTRALIZATION
?
The Degree To Which Decision Making Is Concentrated At A Single Point In The Organization. Decision Discretion Is Pushed Down To Lower Level Employees.
?
DECENTRALIZATION
Low Decentralization High Decentralization
Eliminates the additional responsibility not desired by people performing routine jobs. ? Permits crucial decision to be made by ‘big picture’ people.
?
Can eliminate the levels of management, making the linear organization ? Promotes greater opportunity for decision to be made by the people closer to organization.
?
FORMALIZATION
?
Refers To The Degree To Which Jobs Within The Organization Are Standardized. Highly Formalized Jobs Reduces Complexity. Eliminates Possibility of Employees Engaging In Alternative Behaviors.
?
?
?
Removes The Need For Employees To Consider Alternatives.
ORGANIZATIONAL DESIGNS
The process of coordinating the structural elements of an organization in the most appropriate manner.
? Approaches
? ?
include
Classical and Neoclassical Approaches The Contingency Approach
CLASSICAL VS. NEOCLASSICAL THEORY
Classical Organizational Theory: The approach that assumes
that there is a single best way to design organizations.
?
This approach assumes that managers need to have close control over their subordinates and calls for designing organizations with tall hierarchies and a narrow span of control.
Neoclassical Organizational Theory: An attempt to improve
on the classical organizational theory that argues that not only economic effectiveness, but also employee satisfaction, should be goals of an industrial organization.
?
This approach assumes that managers do not have to carefully monitor their subordinates and calls for designing organizations with flat hierarchies and a wide span of control.
CLASSICAL VS. NEOCLASSICAL THEORY
THE CONTINGENCY APPROACH
?
The contemporary approach that recognizes that no one approach to organizational design is best, but that the best design is the one that best fits with the existing environmental conditions. Mechanistic Organization: An internal organizational structure in which people perform specialized jobs, many rigid rules are imposed, and authority is vested in a few top-ranking officials. Organic Organization: An internal organizational structure in which jobs tend to be very general, there are few rules, and decisions can be made by lower-level employees.
?
?
DESIGN EFFECTIVENESS
COMMON ORGANIZATIONAL DESIGNS
?
Simple Structure The Bureaucracy
?
?
The Matrix Structure
SIMPLE STRUCTURE
?
Low Degree of Departmentalization. Wide Span of Control.
?
?
Authority In One Hand.
Little Formalization.
?
THE BUREAUCRACY
•
• •
• • •
Highly Routine Operative Tasks Achieved Through Specialization. Very Formalized Rules And Regulations. Tasks That Are Grouped Into Functional Departments. Centralized Authority. Narrow Span of Control. Decision Making Following The Chain of Command.
MATRIX STRUCTURE
?
Creates Dual Lines of Authority. Combines Functional And Product Departmentalization.
?
MATRIX ORGANIZATION STRUCTURE
24
NEW DESIGN OPTIONS
?
The Team Structure The Boundaryless Organization Modular organization Virtual organization Feminine Organization
? ? ?
?
THE TEAM STRUCTURE
•
• • •
•
Use of Teams As Central Device To Coordinate Work Activities. Breaks Down Departmental Barriers. Decentralizes Decision Making. Requires Employees to Be Generalist As Well As Specialist. Achieves Efficiency of Bureaucracy’s Standardization And Gains The Flexibility That Team Provides.
BOUNDARYLESS ORGANIZATION
An organization in which chains of command are eliminated, spans of control are unlimited, and rigid departments give way to empowered teams. Modular Organization: An organization that surrounds itself by a network of other organizations to which it regularly outsources noncore functions.
Virtual Organization: A highly flexible, temporary organization formed by a group of companies that join forces to exploit a specific opportunity.
BOUNDARYLESS ORGANIZATION
MODULAR ORGANIZATION
VIRTUAL ORGANIZATION
THE FEMININE ORGANIZATION
Members Are Valued As Individual Humans. ? Nonopportunistic. ? Careers Defined In Terms of Services. ? Commitment To Employee Growth. ? Creation of Caring Community. ? Power Sharing.
?
WHY DO STRUCTURES DIFFER?
Strategy ? Organization Size ? Technology ? Environment
?
STRATEGY
Means To Help Management Achieve Its Objectives. ? A Strategy That Emphasizes The Introduction of Major New Products And Services. ? Cost Minimization Strategy. ? Imitation Strategy.
?
Organization Size
?
Organization Size Matters While Deciding Organization Structure.
TECHNOLOGY
?
Refers To How An Organization Transfers Its Inputs Into Outputs. The Common Theme of Differentiating Technologies Is Their Degree of Routineness.
?
ENVIRONMENT
?
?
Those Institutions or Forces Outside The Organization That Potentially Affect The Organization’s Performance. Three Key Dimensions ? Capacity ? Volatility ? Complexity
INFERENCES
?
?
?
?
?
?
The Structure Is Dictated By Organization’s Objectives. Organization Is Very Keen To Follow Very Flexible Structure. Classical, Functional And Departmentation Criteria Coexist. Structure At The Lower Echelon Is Very Flexible But Becomes Rigid As Move Upwards. The Structure Is Very Dynamic And Reactive To Business Environment. The Structure Is Very Proactive Towards Contingencies.
doc_632135311.pptx