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Chapter 6 Organization Structure & Design

This document discusses key elements of organization structure and design including: 1) Basic elements like job specialization, departmentalization, chain of command, and authority distribution. 2) Forms of departmentalization include functional, product, customer, and location-based approaches. 3) Coordination of activities is important and can be achieved through managerial hierarchies, rules and procedures, liaison roles, integrating departments, and electronic means like email.

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Annalene de guzman
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29 views18 pages

Chapter 6 Organization Structure & Design

This document discusses key elements of organization structure and design including: 1) Basic elements like job specialization, departmentalization, chain of command, and authority distribution. 2) Forms of departmentalization include functional, product, customer, and location-based approaches. 3) Coordination of activities is important and can be achieved through managerial hierarchies, rules and procedures, liaison roles, integrating departments, and electronic means like email.

Uploaded by

Annalene de guzman
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 PPTX, PDF, TXT or read online on Scribd
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Chapter 6

Organization Structure
and Design
1. Identify the basic elements of
organizations.

2. Describe the bureaucratic perspective on


organization design.

Learning 3. Identify and explain key situational


influences on organization design.
Outcomes
4. Describe the basic forms of organization
design that characterize many
organizations.

5. Identify and describe emerging issues in


organization design.
Basic Elements of Organizing
What is Organizing?

•Deciding how best to group


organizational activities and
resources.
What are the building blocks of Organizing?
• Organization Structure and Design refers to the overall set
of elements that can be used to configure an organization .

 JOB SPECIALIZATION

• is the degree to which the overall task of


the organization is broken down and
divided into smaller component parts.
Benefits and Limitations of
Specialization
Second, transfer time
between tasks
First, workers
decreases. If employees
performing small,
perform several different
simple tasks will
tasks, some time is lost
become very proficient
as they stop doing the
at each task.
first task and start doing
the next.

Fourth, when an employee who


Third, the more performs a highly specialized job is
absent or resigns, the manager is able to
narrowly defined a job train someone new at relatively low cost.
is, the easier it is to Although specialization is generally
develop specialized thought of in terms of operating jobs,
equipment to assist with many organizations have extended the
that job. basic elements of specialization to
managerial and professional levels.
Five Alternatives to Job Specialization
• Job Rotation
- Involves systematically moving employees from one job to
another.

• Job Enlargement
- Involves increasing the total number of tasks worker
performs.

• Job Enrichment
- Involves increasing both the number of tasks the worker
does and the control the worker has over the job.

• Job Characteristics
Approach- Suggests that jobs should be diagnosed and
improved along five core dimensions, taking into account both the
work system and employee preferences.
Work Teams- Allows an entire group to design the work
system it will use to perform an interrelated set of tasks.
 Grouping Jobs:
Departmentalization
What is it?
The process of grouping jobs according to
some logical arrangement.

• Functional Departmentalization
- Grouping jobs involving the same or similar
activities.
• Product Departmentalization
- Grouping and arranging activities around
products or product groups.
 Grouping Jobs:
Departmentalization

• Customer Departmentalization
- the organization's activities are ready to
respond to and interact with specific customers or
customer groups.

• Location Departmentalization
- The geographical departmentalization
ensures that a cultural, social, and political need of
the region is met.
What needs to be clarified?

 Establishing Chain of Command

Reporting • Clear and distinct lines of


authority among all positions in
Relationship an organization.

s Span of Management
• Determining how many people
will report to each manager.
Tall vs Flat Organizations

 Establishing Tall Organizations

• The structures usually tend to be


Reporting more expensive requiring more
Relationship managers.

s Flat Organizations
• The structure leads to higher levels
of employee morale and
productivity.
 Distributing Authority
•Authority
- Power that has been legitimized by the
organization

•Delegation
- The process by which managers assign a
portion of their workload to others.

Reasons for Delegation


• To enable the manager to get more work done by
utilizing the skills and talents of subordinates.
• To foster development of subordinates by having
them participate in decision making and problem.
•Decentralization and Centralization

 Decentralization
• The process of systematically delegating
power and authority throughout the
organization to middle- and lower- level
managers.

 Centralization
• The process of systematically retaining
power and authority in the hands of upper-
level managers.
 Coordinating Activities
• What is coordination?
The process of linking the activities of the
various departments of the organization.

• The Need for Coordination


The systems must be put into place to keep the
activities of each department focused on
organizational goal attainment.
Three Major Forms of Interdependence

Pooled Sequential Reciprocal


Interdependence Interdependence Interdependence
• When units • When the output • When activities
operate with little of a unit comes flow both ways.
interaction; their becomes then
output is simply input for another
pooled at the unit.
organizational
level.
Structural Coordination Techniques

Managerial Rules and


Liaison roles
hierarchy procedures

Integrating
Task forces
Departments
Electronic Coordination
• Email makes it easier to communicate at all
levels.

• Electronic scheduling is used and makes it


easier for individuals’ schedules to be
coordinated to set meetings and know when
individuals are otherwise available

• Some organizations require project contractors,


subcontractors and suppliers to use a common
web-based communication/ reporting system to
make coordination easier among the units.

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