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Chapter 12
Faisal Ghani
Chapter 12
Faisal Ghani
Chapter 12
Faisal Ghani
Chapter 12
Faisal Ghani
Bureaucratic Model
According to Weber, the ideal
bureaucracy exhibits five basic
characteristics:
Division of labor
Rules and procedures
Organizational hierarchy
Impersonal Relationships among workers
Expertise-based promotions
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Faisal Ghani
Bureaucratic Model
Advantages
Efficiency in function due to well-defined
practices and procedures.
Organizational rules prevent favoritism.
Recognition of and requirement for
expertise stresses the value of an
organizations employees.
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Faisal Ghani
Bureaucratic Model
Disadvantages
Organizational inflexibility and rigidity
due to rules and procedures.
Neglects the social and human
processes within the organization.
Belief in one best way to design an
organization does not apply to all
organizations and their environments.
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Faisal Ghani
Chapter 12
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Leadership
Motivation
Communication
Interaction
Decision making
Goal setting
Control and
Performance goals
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System
System
System
System
Exploitative
Benevolent
Consultative
Participative
Authoritative
Authoritative
Job-centered
leader
behavior
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Employeecentered
leader
behavior
For details see page 378
table 12.1
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Core Technology
Environment
Organizational
Size
ORGANIZATIO
N
DESIGN
Organizational
Life Cycle
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c Rigid hierarchical
relationships
Fixed duties
Many rules
Formalized
communications
channels
Centralized decision
authority
Taller structures
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Organic
Collaboration
Adaptable rules
Informal
communication
Decentralized
decision authority
Flatter structures
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Organizational Size
Total number of full-time or full-time
equivalent employees.
Research findings:
Small firms tend to focus on their core
technology.
Large firms have more job specialization,
standard operating procedures, more
rules and regulations.
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Corporate-Level Strategy
Single-product strategy
Related or unrelated diversification
Portfolio approach to managing strategic
business units
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Business-Level Strategy
Defender
Prospecting
Analyzer
Differentiation
Cost leadership
Focus
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1.
2.
3.
4.
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Vice president,
operations
Vice president,
marketing
Plant
managers
Regional
sales managers
Controller
Shift
supervisors
District
sales managers
Accounting
supervisor
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Labor relations
director
Scientific
director
Plant human
Lab manager
resource manager
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Samsung
Electronics Co.
TeleSemiconductors
Appliances
communications
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Media
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HP
Computers Printers
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Matrix Design
Matrix Design Disadvantages
Employees are uncertain about reporting
relationships.
Managers may view design as an anarchy in
which they have unlimited freedom.
The dynamics of group behavior may lead to
slower decision making, one-person domination,
compromise decisions, or a loss of focus.
More time may be required for coordinating taskrelated activities.
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CEO
VP
VP
Engineering Production
VP
Finance
VP
Marketing
Project
Manager A
Project
Manager B
Project
Manager C
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Hybrid Designs
An organizational arrangement based on
two or more common forms of organization
design.
An organization may have a mixture of
related divisions and a single unrelated
division.
Most organizations use a modified form of
organization design that permits it to have
sufficient flexibility to make adjustments for
strategic purposes.
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