Professional Documents
Culture Documents
OrganizationalStructureandDesign
OUTLINE
DefiningOrganizationalStructure
Workspecialization
Departmentalization
ChainofCommand
SpanofControl
Centralizevs.Decentralize
Formalization
Org.DesignDecisions
MechanisticandOrganic
ContingencyFactors
CommonDesigns
OrganizationalStructure
Theformalarrangementofjobswithinanorganization
OrganizationalDesign
Aprocessinvolvingdecisionsaboutsixkeyelements:
1.
2.
3.
4.
5.
6.
Workspecialization
Departmentalization
Chainofcommand
Spanofcontrol
Centralizationanddecentralization
Formalization
Organizational Structure
WorkSpecialization
Thedegreetowhichtasksintheorganizationare
dividedintoseparatejobswitheachstep
completedbyadifferentperson
Overspecializationcanresultinhumandiseconomies
fromboredom,fatigue,stress,poorquality,increased
absenteeism,andhigherturnover
Departmentalization by Type
Functional
Groupingjobsby
functionsperformed
Product
Groupingjobsby
productline
Geographical
Process
Groupingjobsonthe
basisofproductor
customerflow
Customer
Groupingjobsbytype
ofcustomerandneeds
Groupingjobsonthe
basisofterritoryor
geography
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
Manager,
Engineering
Manager,
Accounting
Manager,
Manufacturing
Manager,
Human Resources
Manager,
Purchasing
Sales Director,
Prairies Region
Sales Director,
Central Region
Sales Director,
Eastern Region
Mass Transit
Division
Recreational
Products Division
+
+
+
Recreational and
Utility Vehicles
Sector
BombardierRotax
(Vienna)
Rail Products
Sector
Logistic
Industrial
BombardierRotax
Equipment Division Equipment Division (Gunskirchen)
Planing
and
Milling
Departme
nt
Manager
Assembling
Department
Manager
Lacquering
and
Sanding
Departme
nt
Manager
Finishing
Department
Manager
Inspection
and
Shipping
Department
Manager
10
Manager,
Wholesale Accounts
Manager,
Government Accounts
11
Group Exercise
Thinkofaplacewhereyouhave(ordo)
work(ed).Lookingatthevariousformsof
departmentalizationchooseanexamplefrom
oneofyourgroupmembersplacesof
employmentandanswerthefollowing:
Whichwouldhavebeen(wouldbe)themost
appropriatemodelofdepartmentalizationforthis
workplace?Whyexplainyourrationale?
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
12
13
14
Staffmanagershaveadvisoryauthority,and
cannotissueorderstothoseinthechainof
command(exceptthoseintheirowndepartment)
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
15
Thenumberofemployeeswhocanbeeffectivelyand
efficientlysupervisedbyamanager
Widthofspanisaffectedby:
Skillsandabilitiesofthemanagerandtheemployees
Characteristicsoftheworkbeingdone
Similarityoftasks
Complexityoftasks
Physicalproximityofsubordinates
Standardizationoftasks
Sophisticationoftheorganizationsinformationsystem
Strengthoftheorganizationsculture
Preferredstyleofthemanager
16
Assuming Span of 8
1
2
1
4
1
8
3
4
5
6
16
64
256
1024
64
512
4096
4096
(Lowest)
Span of 4:
Employees:
= 4096
Managers (level 16)= 1365
Span of 8:
Employees:
= 4096
Managers (level 14) = 585
17
Decentralization
Thedegreetowhichlowerlevelemployeesprovideinput
oractuallymakedecisions
EmployeeEmpowerment
Increasingthedecisionmakingdiscretionofemployees
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
18
Environmentisstable
Lowerlevelmanagersarenotascapableorexperienced
atmakingdecisionsasupperlevelmanagers
Lowerlevelmanagersdonotwanttohaveasayin
decisions
Decisionsaresignificant
Organizationisfacingacrisisortheriskofcompany
failure
Companyislarge
Effectiveimplementationofcompanystrategiesdepends
onmanagersretainingsayoverwhathappens
19
Environmentiscomplex,uncertain
Lowerlevelmanagersarecapableandexperiencedat
makingdecisions
Lowerlevelmanagerswantavoiceindecisions
Decisionsarerelativelyminor
Corporatecultureisopentoallowingmanagerstohavea
sayinwhathappens
Companyisgeographicallydispersed
Effectiveimplementationofcompanystrategiesdepends
onmanagershavinginvolvementandflexibilitytomake
decisions
20
21
OrganicOrganization
Highlyflexibleand
adaptablestructure
Mechanistic
High Specialization
Rigid Departmentalization
Clear Chain of Command
Narrow Spans of Control
Centralization
High Formalization
Organic
Cross-Functional Teams
Cross-Hierarchical Teams
Free Flow of Information
Wide Spans of Control
Decentralization
Low Formalization
22
Sizeoftheorganization
Firmschangefromorganictomechanisticorganizationsas
theygrowinsize
Technologyusebytheorganization
Firmsadapttheirstructuretothetechnologytheyuse
Degreeofenvironmentaluncertainty
Dynamicenvironmentsrequireorganicstructures;mechanistic
structuresneedstableenvironments
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
23
StrategyFrameworks:
Innovation
Pursuingcompetitiveadvantagethroughmeaningfuland
uniqueinnovationsfavoursanorganicstructuring
Costminimization
Focusingontightlycontrollingcostsrequiresa
mechanisticstructurefortheorganization
Imitation
Minimizingrisksandmaximizingprofitabilityby
copyingmarketleadersrequiresbothorganicand
mechanisticelementsintheorganizationsstructure
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
24
StrategyandStructure
Achievementofstrategicgoalsisfacilitatedby
changesinorganizationalstructurethat
accommodateandsupportchange
SizeandStructure
Asanorganizationgrowslarger,itsstructure
tendstochangefromorganictomechanisticwith
increasedspecialization,departmentalization,
centralization,andrulesandregulations
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
25
TechnologyandStructure
Organizationsadapttheirstructurestotheir
technology
Routinetechnology=mechanisticorganizations
Nonroutinetechnology=organicorganizations
26
FunctionalStructure
Departmentalizationbyfunction
Operations,finance,humanresources,andproductresearchand
development
DivisionalStructure
Composedofseparatebusinessunitsordivisionswithlimited
autonomyunderthecoordinationandcontroloftheparent
corporation
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
27
28
MatrixStructures
Specialistsfordifferentfunctionaldepartmentsare
assignedtoworkonprojectsledbyprojectmanagers
Matrixparticipantshavetwomanagers
ProjectStructures
Employeesworkcontinuouslyonprojects,movingonto
anotherprojectaseachprojectiscompleted
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
29
30
Manufacturing
Contract
Administration
Purchasing
Accounting
Human
Resources (HR)
Alpha
Project
Design
Group
Manufacturing
Group
Contract
Group
Purchasing
Group
Accounting
Group
HR
Group
Beta
Project
Design
Group
Manufacturing
Group
Contract
Group
Purchasing
Group
Accounting
Group
HR
Group
Gamma
Project
Design
Group
Manufacturing
Group
Contract
Group
Purchasing
Group
Accounting
Group
HR
Group
Omega
Project
Design
Group
Manufacturing
Group
Contract
Group
Purchasing
Group
Accounting
Group
HR
Group
31
Eliminatesexternalboundaries:
Usesvirtual,network,andmodularorganizational
structurestogetclosertostakeholders
Chapter 9, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian
32
Removing Boundaries
VirtualOrganization
Anorganizationthatconsistsofasmallcoreoffulltime
employeesandthattemporarilyhiresspecialiststowork
onopportunitiesthatarise
NetworkOrganization
Asmallcoreorganizationthatoutsourcesitsmajor
businessfunctions(e.g.,manufacturing)inorderto
concentrateonwhatitdoesbest
ModularOrganization
Amanufacturingorganizationthatusesoutsidesuppliers
toprovideproductcomponentsforitsfinalassembly
operations
33
Organizational Culture
Strong Mutual Relationships THE LEARNING
Sense of Community
ORGANIZATION
Caring
Trust
Leadership
Shared Vision
Collaboration
Information Sharing
Open
Timely
Accurate
34
Thanks!
35