Managing

Organizational

Structure

Topic

9

Prof. James J. BarkocyBus100

9–2

• OrganizingThe process by which managers establish working

relationships among employees to achieve goals.

One of the four

management

functions

The Organizing Function

9–3

The framework

for dividing,

assigning, and

coordinating work

Developments in

or changes to

the structure of

an organization

Organizational

Structure

Organizational

Design

9–4

Contingency Approach to Organizational

Design

9–5

Key Elements

of Organization Structure

FormalizationCentralization and

Decentalization

Job Design

Chain

of Command

Departmentalization

Span

of Control

9–6

Designing Motivating Jobs

Number of Tasks

Frequency of Tasks

Employee Control

Feedback

Job

Enrichment

Scope Depth

Job

Enlargement

9–7

Job Characteristics Model

9–8

Job Characteristics Model Guidelines for Job

Redesign

9–9

Functional Structure (Departmentalization)

• Advantages

• Efficiencies from putting together similar specialties and

people with common skills, knowledge, and orientations

• Coordination within functional area

• In-depth specialization

• Disadvantages

• Poor communication across functional areas

• Limited view of organizational goals

9–10

Product Structure (Departmentalization)

+ Allows specialization in particular products and services

+ Managers can become experts in their industry

+ Closer to customers

– Duplication of functions

– Limited view of organizational goals

9–11

Geographical Structure (Departmentalization)

• Advantages

• More effective and efficient handling of specific

regional issues that arise

• Serve needs of unique geographic markets better

• Disadvantages

• Duplication of functions

• Can feel isolated from other organizational areas

9–12

Market Structure (Departmentalization)

+ Customers’ needs and problems can be met by specialists

- Duplication of functions

- Limited view of organizational goals

9–13

Matrix Structure (Departmentalization)

9–14

Product Team Structure (Departmentalization)

9–15

Chain of Command

The continuous line of authority that extends from

upper levels of an organization to the lowest levels of

the organization and clarifies who reports to who.

9–16

Span of Control

9–17

Span of Control

9–18

Span of Control

9–19

Factors That Influence the Amount of Centralization and

Decentralization

9–20

Mechanistic versus Organic

Organization

9–21

Centralized

Authority

Little

Formalization

Few

Departments

Wide Spans

of Control

The Simple

Structure