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Organizational Structure and Design Basics
1.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-1 Organizational Structure And DesignOrganizational Structure And Design • Organization structureOrganization structure –– the pattern ofthe pattern of jobs and groups of jobs in anjobs and groups of jobs in an organization.organization. • It is an important cause of individual andIt is an important cause of individual and group behavior.group behavior.
2.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-2 The Concept of Organization Structure Structure as anStructure as an influence oninfluence on behaviorbehavior Structure asStructure as recurring activitiesrecurring activities
3.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-3 Organization designOrganization design –– managementmanagement decisions and actions that result in adecisions and actions that result in a specific organization structure.specific organization structure.
4.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-4 Division of Labor: Departmentalization: Span of Control: HighHigh LowLow HomogeneousHomogeneous HeterogeneousHeterogeneous ManyFewFew Authority: LowLowHighHigh SpecializationSpecialization BasisBasis NumberNumber DelegationDelegation The Four Key Design Decisions
5.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-5 Division of Labor • Division of labor – concerns the extent to which jobs are specialized • It is the process of dividing work into relatively specialized jobs to achieve advantages of specialization
6.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-6 Division of Labor Occurs in Three Different Ways: 1. Personal specialties • e.g., accountants, software engineers, graphic designers, scientists, etc. 2. Natural sequence of work • e.g., dividing work in a manufacturing plant into fabricating and assembly (horizontal specialization) 3. Vertical plane • e.g., hierarchy of authority from lowest-level manager to highest-level manager
7.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-7 Delegation of Authority • Managers decide how much authority should be delegated to each job and to each jobholder • Delegation of authority – process of distributing authority downward in an organization
8.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-8 Reasons to Decentralize Authority 1. Relatively high delegation of authority encourages the development of professional managers 2. High delegation of authority can lead to a competitive climate within the organization 3. Managers who have relatively high authority can exercise more autonomy, and thus satisfy their desires to participate in problem solving
9.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-9 Reasons to Centralize Authority (1 of 2) 1. Managers must be trained to make the decisions that go with delegated authority 2. Many managers are accustomed to making decisions and resist delegating authority to their subordinates
10.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-10 Reasons to Centralize Authority (2 of 2) 3. Administrative costs are incurred because new control systems must be developed to provide top management with information about the effects of subordinates’ decisions 4. Decentralization means duplication of functions
11.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-11 Delegation Decision Guidelines (1 of 2) • How routine and straightforward are the job’s or unit’s required decisions? • The authority for routine decisions can be centralized • Are individuals competent to make the decision? • Even if the decision is non-routine, if the local manager is not capable, then the decision should be centralized • Delegation of authority can differ among individuals depending upon each one’s ability to make the decision
12.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-12 Delegation Decision Guidelines (2 of 2) • Are individuals motivated to make the decision? • Capable individuals are not always motivated individuals • Motivation must accompany competency to create conducive conditions for decentralization • Do the benefits of decentralization outweigh its costs?
13.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-13 DepartmentalizationDepartmentalization –– process inprocess in which an organization iswhich an organization is structurally divided by combiningstructurally divided by combining jobs in departments according tojobs in departments according to some shared characteristic orsome shared characteristic or basis.basis.
14.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-14 Functional Geographic Product Customer Departmentalization Bases
15.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-15 Departmental Bases: Functional Departmentalization • Jobs are combined according to the functions of the organization • The principal advantage is efficiency • By having departments of specialists, management creates efficient units • A major disadvantage is that organizational goals may be sacrificed in favor of departmental goals
16.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-16 Departmental Bases: Geographic Departmentalization • Establish groups according to geographic area • The logic is that all activities in a given region should be assigned to a manager • Advantageous in large organizations because physical separation of activities makes centralized coordination difficult • Provides a training ground for managerial personnel
17.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-17 Northeast Midwest Southeast Pacific OBM Company Southwest Geographic Departmentalization Structure
18.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-18 Departmental Bases: Product Departmentalization • All jobs associated with producing and selling a product or product line will be placed under the direction of one manager • Product becomes the preferred basis as a firm grows by increasing the number of products it markets • Concentrating authority, responsibility, and accountability in a specific product department allows top management to coordinate actions
19.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-19 OBM CompanyOBM CompanyOBM CompanyOBM Company SmallSmall HouseholdHousehold AppliancesAppliances SmallSmall HouseholdHousehold AppliancesAppliances LargeLarge HouseholdHousehold AppliancesAppliances LargeLarge HouseholdHousehold AppliancesAppliances CommercialCommercial AppliancesAppliances CommercialCommercial AppliancesAppliances BuildingBuilding Materials andMaterials and ProductsProducts BuildingBuilding Materials andMaterials and ProductsProducts Lawn andLawn and GardenGarden ProductsProducts Lawn andLawn and GardenGarden ProductsProducts AutomotiveAutomotive ProductsProducts AutomotiveAutomotive ProductsProducts Product Departmentalization Structure
20.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-20 Departmental Bases: Customer Departmentalization • The importance of customer satisfaction has stimulated firms to search for creative ways to serve people better • Organizations with customer-based departments are better able to satisfy customer-identified needs than organizations that base departments on non-customer factors
21.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-21 Retail Stores Mail Order On-Line Sales Government Contracts OBM Company Institutional Sales Customer Departmentalization Structure
22.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-22 Span of Control (1 of 2) • Number of individuals who report to a specific manager • Narrow span • Wide span • The frequency and intensity of actual relationships is the critical consideration in determining the manager’s span of control
23.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-23 Dimensions of Structure • Formalization – the extent to which expectations regarding the means and ends of work are specified, written, and enforced • Centralization – the location of decision-making authority in the hierarchy • Complexity – the direct outgrowth of dividing work and creating departments
24.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-24 Comparison of Mechanistic and Organic Structures (1 of 3) Process Mechanistic Structure Organic Structure 1. Leadership Includes no perceived confidence and trust between superiors and subordinates. Includes perceived confidence and trust between superiors and subordinates. 2. Motivation Taps only physical, security, and economic motives, through use of fear and sanctions. Taps a full range of motives through participatory methods. 3. Communication Information flows downward and tends to be distorted, inaccurate, and viewed with suspicion by subordinates. Information flows freely: upward, downward, and laterally. The information is accurate and undistorted.
25.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-25 Comparison of Mechanistic and Organic Structures (2 of 3) Process Mechanistic Structure Organic Structure 4. Interaction Closed and restricted. Subordinates have little effect on departmental goals, methods, and activities. Open and extensive. Both superiors and subordinates are able to affect departmental goals, methods, and activities. 5. Decision Relatively centralized. Occurs only at the top of the organization. Relatively decentralized. Occurs at all levels through group processes. 6. Goal setting Located at the top of the organization, discouraging group participation. Encourages group participation in setting high, realistic objectives.
26.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-26 Comparison of Mechanistic and Organic Structures (3 of 3) Process Mechanistic Structure Organic Structure 7. Control Centralized. Emphasizes fixing blame for mistakes. Dispersed throughout the organization. Emphasizes self-control and problem solving. 8. Performance goals Low and passively sought by managers, who make no commitment to developing the organization’s human resources. High and actively sought by superiors, who recognize the need for full commitment to developing, through training, the organization’s human resources.
27.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-27 Organization Design Models: The Matrix Model • Matrix organization – attempts to maximize the strengths and minimize the weaknesses of both the functional and product bases • Superimpose a horizontal structure of authority, influence, and communication on the vertical structure • Facilitates the utilization of highly specialized staff and equipment
28.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-28 Project or product AProject or product A Project or product BProject or product B Project or product CProject or product C Project or product DProject or product D Project or product EProject or product E ManufacturingManufacturing MarketingMarketing EngineeringEngineering FinanceFinance FunctionsFunctions Projects, productsProjects, products Example of the Matrix Organization Model
29.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-29 Advantages of Matrix Organization • Efficient use of resources • Flexibility in conditions of change and uncertainty • Technical excellence • Freeing top management for long-range planning • Improving motivation and commitment • Providing opportunities for personal development
30.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-30 Task Force Teams Product Managers Product Management Depts. (1) (2) (3) (4) Evolutionary Steps to the Matrix Model
31.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-31 Multinational Structure and Design • Multinational corporation – consists of a group of geographically dispersed organizations with different national subsidiaries • Multinational corporations frequently exist in very divergent environments • The most prevalent departmental basis is geographic
32.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-32 Multinational Corporations: Implications for Organizational Design (1 of 2) 1. National boundaries are an important force in defining organizational environments 2. Subsidiaries or affiliates of multinational corporations can act as conduits that introduce changes into the host country’s environment
33.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-33 Multinational Corporations: Implications for Organizational Design (2 of 2) 3. Subsidiaries of multinational corporations can act as conduits through which features of the host country culture are introduced throughout the multinational organization
34.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-34 Virtual Organizations • Virtual organization – a collection of geographically distributed, functionally and/or culturally diverse aggregations of individuals that is linked by electronic forms of communication • Assembled and disassembled according to needs
35.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-35 Virtual Organizations: Consequences • Increase in overall communication and messages • Relationships are tenuous • Continual surety of roles, tasks, and assignments • Caution needed in managing feedback, discussion, performance review, and reward systems • Greater equity of participation
36.
McGraw-Hill/Irwin © 2005
The McGraw-Hill Companies, Inc. All rights reserved. 16-36 Boundaryless Organizations • Organizations in which: • the hierarchy and chain of command are minimized • rigidly structured departments are eliminated • Implemented to reduce barriers between people and constituencies
Notes de l'éditeur
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