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Creating A Flexible Organization

This document provides an overview of key concepts related to organizational structure and design. It defines what an organization is and discusses important considerations for structuring an organization such as job specialization, departmentalization, delegation, span of management, and organizational forms. It also covers topics like corporate culture, committees and task forces, and the informal organization. The overall purpose is to explain how to create a flexible organization by understanding these various structural elements.

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87 views31 pages

Creating A Flexible Organization

This document provides an overview of key concepts related to organizational structure and design. It defines what an organization is and discusses important considerations for structuring an organization such as job specialization, departmentalization, delegation, span of management, and organizational forms. It also covers topics like corporate culture, committees and task forces, and the informal organization. The overall purpose is to explain how to create a flexible organization by understanding these various structural elements.

Uploaded by

Katherine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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YOANDA STEPFANI BIANTORO

201950039

CREATING A FLEXIBLE Chapter

ORGANIZATION 7
LEARNING OBJECTIVES
1. Understand what an organization is and identify its characteristics.

2. Explain why job specialization is important.

3. Identify the various bases for departmentalization.

4. Explain how decentralization follows from delegation.

5. Understand how the span of management describes


an organization.

6. Describe the four basic forms of organizational structure.

7. Describe the effects of corporate culture.

8. Understand how committees and task forces are used.

9. Explain the functions of the informal organization and the grapevine in a business.
WHAT IS AN ORGANIZATION?
A group of two or more people working together to achieve a common set of goals

Developing organization charts


 Organization chart
 A diagram that represents the positions and relationships within an organization
 Chain of command
 The line of authority that extends from the highest to the lowest levels of the organization
 Staff (advisory) positions
 Jobs that are not part of the direct chain of command in the organization
A TYPICAL CORPORATE
ORGANIZATION CHART
MAJOR CONSIDERATIONS FOR
ORGANIZING A BUSINESS
Job design

Departmentalization

Delegation

Span of management

Chain of command
JOB DESIGN
Job specialization
 The separation of activities into distinct tasks and the assignment of different tasks to
different people

Rationale for specialization


 The “job” of the organization is too large for one person to accomplish.
 A worker learning only a specific, highly specialized task should be able to learn to do
it efficiently.
 Workers do not lose time switching from one operation to another.
 Specialization makes it easier to design machinery
to assist those who do the job.
 Specialization makes it easier to train new workers.
JOB DESIGN (CONT.)
Alternatives to job specialization
 Job rotation systematically shifts employees from one job to another
 Job enlargement
 Job enrichment
DEPARTMENTALIZATION
Grouping jobs into manageable units

Common bases for departmentalization


 By function
 By product
 By location
 By customer
 Combinations
MULTIBASE
DEPARTMENTALIZATION FOR
NEW-WAVE FASHIONS, INC.
DELEGATION,
DECENTRALIZATION, AND
CENTRALIZATION
Delegation—assigning part of a manager’s work and power to
other workers
 Steps in delegation
 Responsibility—the duty to do a job or perform a task
 Authority—the power, within an organization, to accomplish an assigned task
 Accountability—the obligation to accomplish an assigned job or task

 Barriers to delegation
 Fear the work will not get done
 Fear the work will be done too well
 Inability to plan and assign work effectively
STEPS IN THE DELEGATION
PROCESS
The manager assigns responsibility.

The subordinate is empowered to do


the task.

Ultimate accountability remains with the manager.


DECENTRALIZATION OF
AUTHORITY
Decentralized organization
 Management consciously attempts to spread authority widely in the lower levels of the
organization

Centralized organization
 Authority is concentrated at the upper levels of the organization

Factors favoring decentralization


 A complex and unpredictable business environment
 Decisions that carry low risk or that are unimportant
 Highly capable lower-level managers with strong decision-making skills
 Past practices of the firm in decentralizing its structure and decision-making processes
THE SPAN OF MANAGEMENT
The number of workers who report directly to one manager
 Wide span
 Large number of subordinates to one manager
 Narrow span
 Only a few subordinates to one manager
THE SPAN OF MANAGEMENT
(CONT.)
THE SPAN OF MANAGEMENT
(CONT.)
Organizational height—number of layers,
or levels, of management in a firm
 Flat organizations
 Have wider spans of management and fewer levels
 Require managers to perform more administrative tasks and to spend more time supervising
subordinates
 Tall organizations
 Have narrow spans of management and many levels
 Have higher administrative costs (more managers)
 May distort internal communications during passage
of the communications through the multiple levels
of organization
FORMS OF ORGANIZATIONAL
STRUCTURE
Line structure
 The chain of command goes directly from person to person throughout the organization
 Simplicity allows for quick decision making and direct accountability
 Most suitable for small organizations with lower volume of activities than medium or large
organizations
FORMS OF ORGANIZATIONAL
STRUCTURE (CONT.)
Line-and-staff structure
 Utilizes the chain of command from a line structure in combination with the assistance of staff
managers
LINE AND STAFF MANAGERS
FORMS OF ORGANIZATIONAL
STRUCTURE (CONT.)
Line-and-staff structure (cont.)
 Line managers make decisions and give orders to subordinates.
 Line authority—line managers can make decisions and issue directives related to
organizational goals
 Staff managers provide support, advice, and expertise.
 Advisory authority—the expectation that line managers will consult with staff managers
before making decisions
 Functional authority—staff managers’ authority to make decisions and issue directives
within their area of expertise
FORMS OF ORGANIZATIONAL
STRUCTURE (CONT.)
Line-and-staff structure (cont.)
 Reasons for conflict between line and staff managers
 Staff managers often have more formal education.
 Staff managers are sometimes younger and more ambitious.
 Line managers may perceive staff managers as a threat.
 Staff managers may become angry if their recommendations are not adopted.

 Minimizing conflict between line and staff managers


 Integrate line and staff managers into one team.
 Ensure that responsibilities are clearly defined.
 Hold both line and staff managers accountable for results.
FORMS OF ORGANIZATIONAL
STRUCTURE (CONT.)
Matrix structure
 A structure that combines vertical and horizontal lines of authority, usually by superimposing product
departmentalization on functional departmentalization
 Authority flows both down and across
 Employees on cross-functional teams report to both the project manager in charge of the team and to
their superiors in their home-base functional department
A MATRIX STRUCTURE
FORMS OF ORGANIZATIONAL
STRUCTURE (CONT.) Matrix Structure (cont.)

Advantages Disadvantages
• Chain of command conflicts
• Added flexibility
• May take longer to resolve
• Increased productivity problems and reach solutions
• Higher morale • Personality clashes
• Increases in creativity and • Poor communications
innovation • Undefined individual roles
• Personal development of • Unclear responsibilities
team members • Difficulty in determining how to
reward individual and team
performance
FORMS OF ORGANIZATIONAL
STRUCTURE (CONT.)
Network structure (virtual organization)
 Administration is the primary function, and most other functions are contracted out
to other firms.
 Strength
 Flexibility allows the organization to adjust quickly to changes
 Weaknesses
 Difficulty controlling the quality of work by other organizations
 Low morale and high turnover of hourly workers
 Vulnerability of relying on outside contractors
CORPORATE CULTURE
The inner rites, rituals, heroes, and
values of a firm
 Indicators of corporate culture
 The physical setting
(e.g., building and office layout)
 Corporate statements about itself
 How the company greets its guests
 How employees spend their time at work
(alone or in groups)
TYPES OF CORPORATE
CULTURES
Networked culture
 Trust and friendship among employees
 Strong commitment to the organization
 Informal environment

Mercenary culture
 Passion, energy, sense of purpose, excitement for work
 Intense, focused, determined to win

Fragmented culture
 Employees not friends; work “at” (not “for”) organization
 Employees have autonomy, flexibility, equality

Communal culture
 Friendship, commitment, focus on performance, high energy
 Lives revolve around the product; success is celebrated by all
CORPORATE CULTURE (CONT.)
CORPORATE CULTURE (CONT.)
Cultural change is needed when
 A company’s environment changes
 The industry becomes more competitive
 Company performance is mediocre
 The company is growing or becomes a large firm
COMMITTEES AND TASK
FORCES
Committees
 Types
 Ad hoc—created for a specific short-term purpose
 Standing—relatively permanent; charged with performing
some recurring task
 Task force—established to investigate a major problem or pending decision
 Differences with individual action
 Advantages
 Members bring more information and knowledge;
more accurate decisions; results communicated
more effectively
 Disadvantages
 Decision making takes longer; may reach unnecessary compromises; one person may dominate
THE INFORMAL
ORGANIZATION
Pattern of behavior and interaction that stems
from personal rather than official relationships
 Informal groups
 Formed by the members themselves to accomplish goals that may or may not be relevant to the
organization
 Can be powerful forces in organizations, exerting positive
as well as negative influences
 The grapevine
 Informal communication network within an organization
that is completely separate from—and sometimes faster than—the organization’s formal
communication channels
 May be accurate or distorted; managers should be aware and use appropriately
THANKYOU FOR YOUR
ATTENTION

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