chapter 9 organizational structure and design
Post on 01-Jun-2018
239 Views
Preview:
TRANSCRIPT
-
8/9/2019 Chapter 9 Organizational structure and design
1/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9–1
rgani!ationalrgani!ational
"tructure and"tructure and#esign#esign
Chapter Chapter
99
$anage%ent "tephen P. &obbins $ary Coulter
tenth edition
-
8/9/2019 Chapter 9 Organizational structure and design
2/36
-
8/9/2019 Chapter 9 Organizational structure and design
3/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9–(
'earning utco%es'earning utco%es9.$ %echanistic and Organic Structures9.$ %echanistic and Organic Structures
• &ontrast mechanistic and organic organizations.&ontrast mechanistic and organic organizations.
• !"plain the contingency factors that affect!"plain the contingency factors that affect
organizational design.organizational design.
9.' &ommon Organizational Designs9.' &ommon Organizational Designs
• &ontrast the three traditional organizational designs.&ontrast the three traditional organizational designs.
• Descrie the contemporary organizational designs.Descrie the contemporary organizational designs.
• Discuss the organizational design challenges facingDiscuss the organizational design challenges facing
managers today.managers today.
-
8/9/2019 Chapter 9 Organizational structure and design
4/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9–)
#esigning rgani!ational "tructure#esigning rgani!ational "tructure
• OrganizingOrganizing (rranging and structuring work to accomplish an organization)s (rranging and structuring work to accomplish an organization)s
goals.goals.
• Organizational StructureOrganizational Structure *he formal arrangement of +os within an organization.*he formal arrangement of +os within an organization.
• Organizational DesignOrganizational Design ( process involving decisions aout si" key elements ( process involving decisions aout si" key elements
-ork specialization-ork specialization
DepartmentalizationDepartmentalization
&hain of command&hain of command Span of controlSpan of control
&entralization and decentralization&entralization and decentralization
ormalizationormalization
-
8/9/2019 Chapter 9 Organizational structure and design
5/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9–*
E+hibit 9–1E+hibit 9–1 Purposes o rgani!ingPurposes o rgani!ing
• #i-ides or/ to be done into speciic obs anddepart%ents.
• ssigns tas/s and responsibilities associated ith
indi-idual obs.
• Coordinates di-erse organi!ational tas/s.
• Clusters obs into units.
• Establishes relationships a%ong indi-iduals,
groups, and depart%ents.
• Establishes or%al lines o authority.
• llocates and deploys organi!ational resources.
-
8/9/2019 Chapter 9 Organizational structure and design
6/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9–
rgani!ational "tructurergani!ational "tructure• -ork Specialization-ork Specialization
*he degree to which tasks in the organization are*he degree to which tasks in the organization are
divided into separate +os with each step completeddivided into separate +os with each step completed
y a different person.y a different person.
Overspecialization can result in human diseconomiesOverspecialization can result in human diseconomies
from oredom, fatigue, stress, poor /uality, increasedfrom oredom, fatigue, stress, poor /uality, increased
asenteeism, and higher turnover.asenteeism, and higher turnover.
-
8/9/2019 Chapter 9 Organizational structure and design
7/36
-
8/9/2019 Chapter 9 Organizational structure and design
8/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–7
E+hibit 9–2E+hibit 9–2 *he ive &ommon orms of
Departmentalization
-
8/9/2019 Chapter 9 Organizational structure and design
9/36
-
8/9/2019 Chapter 9 Organizational structure and design
10/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–10
E+hibit 9–2 8contd: Product #epart%entali!ationE+hibit 9–2 8contd: Product #epart%entali!ation
-
8/9/2019 Chapter 9 Organizational structure and design
11/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–11
E+hibit 9–2 8contd: Process #epart%entali!ationE+hibit 9–2 8contd: Process #epart%entali!ation
; $ore eicient lo o or/ acti-ities
– Can only be used ith certain types o products
-
8/9/2019 Chapter 9 Organizational structure and design
12/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–12
E+hibit 9–2 8contd: Custo%er #epart%entali!ationE+hibit 9–2 8contd: Custo%er #epart%entali!ation
; Custo%ers needs and proble%s can be %et by specialists
< #uplication o unctions
< 'i%ited -ie o organi!ational goals
-
8/9/2019 Chapter 9 Organizational structure and design
13/36
-
8/9/2019 Chapter 9 Organizational structure and design
14/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–1)
rgani!ational "tructure 8contd:rgani!ational "tructure 8contd:• (uthority (uthority
*he rights inherent in a managerial position to tell*he rights inherent in a managerial position to tell
people what to do and to e"pect them to do it.people what to do and to e"pect them to do it.
• 0esponsiility0esponsiility
*he oligation or e"pectation to perform.*he oligation or e"pectation to perform.
• nity of &ommandnity of &ommand
*he concept that a person should have one oss and*he concept that a person should have one oss and
should report only to that person.should report only to that person.
-
8/9/2019 Chapter 9 Organizational structure and design
15/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–1*
rgani!ational "tructure 8contd:rgani!ational "tructure 8contd:• Span of &ontrolSpan of &ontrol
*he numer of employees who can e effectively and efficiently*he numer of employees who can e effectively and efficientlysupervised y a manager.supervised y a manager.
-idth of span is affected y-idth of span is affected y
Skills and ailities of the manager Skills and ailities of the manager
!mployee characteristics!mployee characteristics
&haracteristics of the work eing done&haracteristics of the work eing done
Similarity of tasksSimilarity of tasks
&omple"ity of tasks&omple"ity of tasks
2hysical pro"imity of suordinates2hysical pro"imity of suordinates
Standardization of tasksStandardization of tasks
Sophistication of the organization)s information systemSophistication of the organization)s information system
Strength of the organization)s cultureStrength of the organization)s culture
2referred style of the manager2referred style of the manager
-
8/9/2019 Chapter 9 Organizational structure and design
16/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–1
E+hibit 9–(E+hibit 9–( Contrasting "pans o ControlContrasting "pans o Control
-
8/9/2019 Chapter 9 Organizational structure and design
17/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–13
rgani!ational "tructure 8contd:rgani!ational "tructure 8contd:• &entralization&entralization
*he degree to which decision making is concentrated*he degree to which decision making is concentrated
at upper levels in the organization.at upper levels in the organization. Organizations in which top managers make all the decisionsOrganizations in which top managers make all the decisions
and lower3level employees simply carry out those orders.and lower3level employees simply carry out those orders.
• DecentralizationDecentralizationOrganizations in which decision making is pushedOrganizations in which decision making is pushed
down to the managers who are closest to the action.down to the managers who are closest to the action.
• !mployee !mpowerment!mployee !mpowerment 4ncreasing the decision3making authority 5power6 of4ncreasing the decision3making authority 5power6 of
employees.employees.
-
8/9/2019 Chapter 9 Organizational structure and design
18/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–17
E+hibit 9–)E+hibit 9–) 5actors that Inluence the %ount o5actors that Inluence the %ount o
Centrali!ation and #ecentrali!ation Centrali!ation and #ecentrali!ation
• %ore &entralization%ore &entralization
!nvironment is stale.!nvironment is stale.
7ower3level managers are not as capale or e"perienced at7ower3level managers are not as capale or e"perienced at
making decisions as upper3level managers.making decisions as upper3level managers.
7ower3level managers do not want to have a say in decisions.7ower3level managers do not want to have a say in decisions.
Decisions are relatively minor.Decisions are relatively minor.
Organization is facing a crisis or the risk of company failure.Organization is facing a crisis or the risk of company failure.
&ompany is large.&ompany is large.
!ffective implementation of company strategies depends on!ffective implementation of company strategies depends on
managers retaining say over what happens.managers retaining say over what happens.
-
8/9/2019 Chapter 9 Organizational structure and design
19/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–19
E+hibit 9–) 8contd: 5actors that Inluence the %ountE+hibit 9–) 8contd: 5actors that Inluence the %ount
o Centrali!ation and #ecentrali!ation o Centrali!ation and #ecentrali!ation
• %ore Decentralization%ore Decentralization !nvironment is comple", uncertain.!nvironment is comple", uncertain.
7ower3level managers are capale and e"perienced at making7ower3level managers are capale and e"perienced at making
decisions.decisions.
7ower3level managers want a voice in decisions.7ower3level managers want a voice in decisions.
Decisions are significant.Decisions are significant.
&orporate culture is open to allowing managers to have a say in&orporate culture is open to allowing managers to have a say in
what happens.what happens.
&ompany is geographically dispersed.&ompany is geographically dispersed.
!ffective implementation of company strategies depends on!ffective implementation of company strategies depends on
managers having involvement and fle"iility to make decisions.managers having involvement and fle"iility to make decisions.
-
8/9/2019 Chapter 9 Organizational structure and design
20/36
-
8/9/2019 Chapter 9 Organizational structure and design
21/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall9–21
E+hibit 9–*E+hibit 9–* $echanistic =ersus rganic rgani!ation$echanistic =ersus rganic rgani!ation
> High speciali!ation
> &igid depart%entali!ation
> Clear chain o co%%and
> ?arro spans o control
> Centrali!ation
> High or%ali!ation
> Cross Cross 5ree lo o inor%ation
> @ide spans o control
> #ecentrali!ation
> 'o or%ali!ation
-
8/9/2019 Chapter 9 Organizational structure and design
22/36
-
8/9/2019 Chapter 9 Organizational structure and design
23/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–2(
Contingency 5actors 8contd:Contingency 5actors 8contd:
• Strategy rameworksStrategy rameworks
4nnovation4nnovation
2ursuing competitive advantage through meaningful and2ursuing competitive advantage through meaningful anduni/ue innovations favors an organic structuring.uni/ue innovations favors an organic structuring.
&ost minimization&ost minimization ocusing on tightly controlling costs re/uires a mechanisticocusing on tightly controlling costs re/uires a mechanistic
structure for the organization.structure for the organization.
-
8/9/2019 Chapter 9 Organizational structure and design
24/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–2)
Contingency 5actors 8contd:Contingency 5actors 8contd:• Strategy and StructureStrategy and Structure
(chievement of strategic goals is facilitated y (chievement of strategic goals is facilitated y
changes in organizational structure thatchanges in organizational structure that
accommodate and support change.accommodate and support change.
• Size and StructureSize and Structure
(s an organization grows larger, its structure tends to (s an organization grows larger, its structure tends to
change from organic to mechanistic with increasedchange from organic to mechanistic with increased
specialization, departmentalization, centralization,specialization, departmentalization, centralization,
and rules and regulations.and rules and regulations.
-
8/9/2019 Chapter 9 Organizational structure and design
25/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–2*
Contingency 5actors 8contd:Contingency 5actors 8contd:• *echnology and Structure*echnology and Structure
Organizations adapt their structures to theirOrganizations adapt their structures to their
technology.technology.
-oodward)s classification of firms ased on the-oodward)s classification of firms ased on the
comple"ity of the technology employedcomple"ity of the technology employed Anit productionAnit production of single units or small atchesof single units or small atches
$ass production$ass production of large atches of outputof large atches of output
Process productionProcess production in continuous process of outputsin continuous process of outputs
0outine technology : mechanistic organizations0outine technology : mechanistic organizations;on3routine technology : organic organizations;on3routine technology : organic organizations
-
8/9/2019 Chapter 9 Organizational structure and design
26/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–2
Contingency 5actors 8contd:Contingency 5actors 8contd:• !nvironmental ncertainty and Structure!nvironmental ncertainty and Structure
%echanistic organizational structures tend to e most%echanistic organizational structures tend to e most
effective in stale and simple environments.effective in stale and simple environments.
*he fle"iility of organic organizational structures is*he fle"iility of organic organizational structures is
etter suited for dynamic and comple" environments.etter suited for dynamic and comple" environments.
-
8/9/2019 Chapter 9 Organizational structure and design
27/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–23
Co%%on rgani!ational #esignsCo%%on rgani!ational #esigns
• *raditional Designs*raditional DesignsSimple structureSimple structure
7ow departmentalization, wide spans of control, centralized7ow departmentalization, wide spans of control, centralized
authority, little formalizationauthority, little formalization
unctional structureunctional structure Departmentalization y functionDepartmentalization y function
# Operations, finance, marketing, human resources, andOperations, finance, marketing, human resources, and
product research and developmentproduct research and development
Divisional structureDivisional structure &omposed of separate usiness units or divisions with limited&omposed of separate usiness units or divisions with limited
autonomy under the coordination and control the parentautonomy under the coordination and control the parent
corporation.corporation.
-
8/9/2019 Chapter 9 Organizational structure and design
28/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–27
E+hibit 9–3E+hibit 9–3 "trengths and @ea/nesses o 4raditional"trengths and @ea/nesses o 4raditional
rgani!ational #esigns rgani!ational #esigns
-
8/9/2019 Chapter 9 Organizational structure and design
29/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–29
E+hibit 9–7E+hibit 9–7 Conte%porary rgani!ational #esignsConte%porary rgani!ational #esigns
4ea% "tructure4ea% "tructure
•• -hat it is-hat it is ( structure in which the entire organization is made up of ( structure in which the entire organization is made up ofwork groups or teams.work groups or teams.
•• (dvantages (dvantages !mployees are more involved and empowered. 0educed!mployees are more involved and empowered. 0educedarriers among functional areas.arriers among functional areas.
•• DisadvantagesDisadvantages ;o clear chain of command. 2ressure on teams to perform.;o clear chain of command. 2ressure on teams to perform.
$atri+
-
8/9/2019 Chapter 9 Organizational structure and design
30/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–(0
E+hibit 9–7 8contdE+hibit 9–7 8contd : Conte%porary rgani!ational: Conte%porary rgani!ational
#esigns #esigns
Boundaryless "tructureBoundaryless "tructure
-hat it is-hat it is ( structure that is not defined y or limited to artificial ( structure that is not defined y or limited to artificialhorizontal, vertical, or e"ternal oundaries includes virtualhorizontal, vertical, or e"ternal oundaries includes virtualand network types of organizations.and network types of organizations.
•• (dvantages (dvantages 8ighly fle"ile and responsive. Draws on talent wherever it)s8ighly fle"ile and responsive. Draws on talent wherever it)sfound.found.
•• DisadvantagesDisadvantages 7ack of control. &ommunication difficulties.7ack of control. &ommunication difficulties.
-
8/9/2019 Chapter 9 Organizational structure and design
31/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–(1
rgani!ational #esigns 8contd:rgani!ational #esigns 8contd:• &ontemporary Organizational Designs&ontemporary Organizational Designs
*eam structures*eam structures
*he entire organization is made up of work groups or self3*he entire organization is made up of work groups or self3
managed teams of empowered employees.managed teams of empowered employees.
%atri" and pro+ect structures%atri" and pro+ect structures Specialists from different functional departments areSpecialists from different functional departments are
assigned to work on pro+ects led y pro+ect managers.assigned to work on pro+ects led y pro+ect managers.
%atri" and pro+ect participants have two managers.%atri" and pro+ect participants have two managers.
4n pro+ect structures, employees work continuously on4n pro+ect structures, employees work continuously onpro+ects moving on to another pro+ect as each pro+ect ispro+ects moving on to another pro+ect as each pro+ect is
completed.completed.
-
8/9/2019 Chapter 9 Organizational structure and design
32/36
-
8/9/2019 Chapter 9 Organizational structure and design
33/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–((
&e%o-ing E+ternal Boundaries&e%o-ing E+ternal Boundaries• =irtual rgani!ation=irtual rgani!ation
n organi!ation that consists o a s%all core o ull
-
8/9/2019 Chapter 9 Organizational structure and design
34/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–()
4odays rgani!ational #esign4odays rgani!ational #esign
ChallengesChallenges• =eeping !mployees &onnected=eeping !mployees &onnected
-idely dispersed and moile employees-idely dispersed and moile employees
• loal Structural 4ssues
&ultural implications of design elements&ultural implications of design elements
-
8/9/2019 Chapter 9 Organizational structure and design
35/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–(*
4er%s to no4er%s to no• organizingorganizing
• organizational structureorganizational structure• organizational chartorganizational chart• organizational designorganizational design• work specializationwork specialization• departmentalizationdepartmentalization• cross3functional teamscross3functional teams• chain of commandchain of command• authorityauthority• responsiilityresponsiility• unity of commandunity of command• span of controlspan of control
• centralizationcentralization• decentralizationdecentralization• employee empowermentemployee empowerment• formalizationformalization
• mechanistic organizationmechanistic organization
• organic organizationorganic organization• unit productionunit production• mass productionmass production• process productionprocess production• simple structuresimple structure•
functional structurefunctional structure
• divisional structuredivisional structure• team structureteam structure• matri" structurematri" structure• pro+ect structurepro+ect structure• oundaryless organizationoundaryless organization
• virtual organizationvirtual organization• network organizationnetwork organization• learning organizationlearning organization
-
8/9/2019 Chapter 9 Organizational structure and design
36/36
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9–(
(ll rights reserved. ;o part of this pulication may e reproduced, (ll rights reserved. ;o part of this pulication may e reproduced,stored in a retrieval system, or transmitted, in any form or ystored in a retrieval system, or transmitted, in any form or y
any means, electronic, mechanical, photocopying, recording, orany means, electronic, mechanical, photocopying, recording, orotherwise, without the prior written permission of the pulisher.otherwise, without the prior written permission of the pulisher.
2rinted in the nited States of (merica.2rinted in the nited States of (merica.
top related