Basic Challenges Of

Organizational Design
Differentiation
 Is the process by which an
organization allocates people and
resources to organizational tasks and
establish the task and authority
relationships that allow the
organization to achieve its goals
Organizational roles
 Is a set of task-related behaviours
required of a person by his or her
position in an organization
Subunit: Functions and Divisions
(1)
 A function: is a submit in which
people posses similar skills or use the
same set of resources
 A division is: is a submit that consist
of two or more functions that share
responsibility for producing a
particular good or services
Subunit: Functions and Divisions
(2)
 Support functions facilitate an
organization’s control of its relations
with its environment and its
stakeholders
 Production function: manage and
improve the efficiency of an
organization’s conversion processes
so that more value is created
Subunit: Functions and Divisions
(3)
 Maintenance functions: enable an
organizations to keep its departments
in operations
 Adaptive functions: enable an
organization to adjust to changes in
the environment
 Managerial functions: facilitate the
control and coordination's of activities
within and among departements
Integration and Integrating
Mechanism
  Integration is the process of coordinating various
takes, functions and divisions so that they work
together and do not at cross purposes
  seven of integrating mechanism suc as
- Hierarchy and authority
- direct contact
- liaison role
- task force
- team
- integrating role
- integrating departement
Centralization vs decentralization
  When the authority to make the important
decisions is retained by managers at the
top of the hierarchy, authority is said to be
highly centralized
  When the authority to make important
decision about organizational resources and
to initiate new projects is delegated to
managers at all level in the hierarchy,
authority is highly decentralized
Mechanistic and Organic
Organizational Structures
 Mechanistic structures: are designed
to induce people to behave in
predictable, accountable ways
 In a mechanistic structures, the
hierarchy is the principal integrating
mechanism both within and between
functions
Mechanistic structures result when an
organization makes these choices
 Individual specialization
 Simple integrating mechanism
 Centralization
 Status-conscious informal
organization
Organic structure result when an
organization makes these choices
 Joint specialization
 Complex integrating mechanism
 Decentralization
 Mutual adjustment
 Expertise-conscious informal
organization