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Lec10 Chapt11 OrgStructure&Design

This document provides an overview of organizational structures and design. It begins by describing organizing as a management function and differentiating between formal and informal structures. Traditional structures like functional, divisional, matrix and team structures are identified along with their strengths and weaknesses. Horizontal structures like networks are also discussed. The document notes how organizational design is changing in modern workplaces, moving from bureaucratic to more adaptive models. Key concepts like decentralization, delegation, and trends toward empowerment and horizontal structures are covered.

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Sukant Pabreja
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41 views31 pages

Lec10 Chapt11 OrgStructure&Design

This document provides an overview of organizational structures and design. It begins by describing organizing as a management function and differentiating between formal and informal structures. Traditional structures like functional, divisional, matrix and team structures are identified along with their strengths and weaknesses. Horizontal structures like networks are also discussed. The document notes how organizational design is changing in modern workplaces, moving from bureaucratic to more adaptive models. Key concepts like decentralization, delegation, and trends toward empowerment and horizontal structures are covered.

Uploaded by

Sukant Pabreja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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December 29, 2020

Organization
Structures & Design
Mohamed Elmi
Lecture 10/Chapter 11
CGMS 200
Learning Objectives
• Describe organizing as a management function and the
difference between formal and informal organization
structures.
• Identify the traditional organizational structures, and the
strengths and weaknesses of each.
• Identify newer horizontal organizational structures, and the
strengths and weaknesses of each.
• Explain how organizational designs are changing in the
modern workplace.

2
Organizing – to create structures

• Divide up the work


• Arrange resources
• Coordinate activities

Planning – to set the Controlling – to


direction ensure results

Leading – to inspire
effort

Organizing viewed in relationship with the


other management functions
Potential advantages of Potential disadvantages of
informal structures: informal structures:
• Allow people to make • Presence of “In and out groups”
contacts with others who can • Susceptibility to rumor
help them get things done • May carry inaccurate
• Stimulate learning as people information
work and interact together • May breed resistance to change
• Sources of emotional support • Diversion of work efforts from
important objectives
and friendship that satisfy
members’ social needs • Feeling of alienation by
outsiders
Functional structures in a business, branch bank,
and community hospital
9
Divisional structures based on product, geography,
customer, and process
Traditional Organization Structures

11
Matrix structure in a small, multi-project business firm
Traditional Organization Structures

13
How a team structure uses cross-functional teams for
improved lateral relations
Horizontal Organization Structures

15
A network structure for a Web-based retail business
Traditional Organization Structures

17
The boundaryless organization, which eliminates internal and external barriers
Organizational design alternatives: From bureaucratic to
adaptive organizations
Three Steps in Delegation:

Step 1: Assign Step 2: Grant Step 3: Create


responsibility – authority – accountability –
explain task allow others to require others
and make decisions to report back
expectations and act on results
Decentralization with centralization

• Centralization is the concentration of authority for


making most decisions at the top levels of the
organization
• Decentralization is the dispersion of authority to
make decisions throughout all levels of the
organization
• Centralization and decentralization not an
“either/or” choice
Organizing trend:
• Delegation, empowerment, and horizontal structures contribute
to more decentralization in organizations
• Advances in information technology allow for the retention of
centralized control
• Reduced use of staff
• Staff positions provide technical expertise for other parts of the
organization
• Organizations are downsizing
• Organizations are lowering costs and increasing efficiency by
employing fewer staff personnel and using smaller staff units
See you next week

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