Organizational Designs

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.1

Learning Outcomes

Identify and define the six elements of organization structure Describe the advantages and disadvantages of work specialization Contrast authority and power Identify the five different ways by which management can departmentalize Contrast mechanistic and organic organizations Summarize the effect on organization structures of strategy, size, technology, and environment
(continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.2

Learning Outcomes (continued)

Contrast the divisional and functional structures Explain the strengths of the matrix structure Describe the boundaryless organization and what elements have contributed to its development Explain what the term learning organization means Describe what the term organization culture means

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc. FOM 6.3

Organization Structure
The framework for dividing, assigning, and coordinating work
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Organization Design
Developments in or changes to the structure of an organization
FOM 6.4

Key Elements of Organization Structure

Work Specialization Chain of Command Span of Control
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Authority and Responsibility Centralization vs. Decentralization Departmentalization

FOM 6.5

Work Specialization
High

Job is broken down into a number of steps Each step is completed by a separate individual Makes efficient use of the diversity of skills that workers have
Work Specialization High

Low

Productivity

Low

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.6

The Chain of Command

Chief Executive Officer Executive Vice President Vice President Region 1 District A District B Vice President Region 2 District C Executive Vice President Vice President Region 4 District E Vice President Region 5 District F District G

President

Vice President Region 3 District D

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.7

Span of Control

Number of employees that an manager can manage effectively Increased over the last several years Contingency variables impact number

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.8

Authority vs. Responsibility

Rights inherent in managerial position to give orders and expect them to be followed Related to ones position--not the characteristics of person

Obligation to perform Goes hand-in-hand with authority

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.9

The Concept of Authority

Chief Executive Officer

Research and Human Finance AccountingMarketingProduction Development Resources

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.10

Line Authority

Level of authority that entitles manager to direct the work of an employee Contributes directly to the achievement of organizational objectives

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.11

The Concept of Power

The Power Core

Authority Level

Accounti ng Marketing

Finance

Human Resources Research and Development

Production

Functio n Robbins et al., Fundamentals of Management, 4th Canadian Edition

2005 Pearson Education Canada, Inc.

FOM 6.12

Coercive Referent Reward

Power
Expert
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Legitimate
FOM 6.13

The Degree of Centralization

Lower Higher

Top Management Control

Centralization

Higher
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Lower
FOM 6.14

Employee Empowerment

Decentralization

Five Ways to Departmentalize

Functional Product Customer Geographic Process

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.15

Contingency Variables Affecting Structure

MECHANISTIC Rigid hierarchical relationships Fixed duties Formal communication channels Centralized authority

ORGANIC Collaboration (both vertical and horizontal) Adaptable duties Information communication Decentralized authorized
FOM 6.16

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Strategy

Contingency Factors and Organization Design

Size Technology Environmental Uncertainty

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.17

Few Departments

Wide Spans of Control

The Simple Structure

Little Formalization
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Centralized Authority
FOM 6.18

The Bureaucracy
Functional Structure
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Divisional Structure
FOM 6.19

Cross-Functional Coordination

Clear Accountability

The Matrix Structure

Dual Chain of Command
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Allocation of Specialists
FOM 6.20

Matrix Structure Sample

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.21

The Team-Based Structure

Empower Employees to Make Decisions
Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Hold Teams Accountable for Results of Work

FOM 6.22

Boundaryless Organization

Globalization of markets and competitors Rapidly changing technology Need for rapid innovation

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.23

The Learning Organization

Organizational Design Boundaryless Teams Empowerment Organizational Culture Strong mutual relationships Sense of community Caring Trust Information Sharing Open LEARNING ORGANIZATION Timely Accurate

Leadership Shared vision Collaboration

Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter, and Robin Stuart-Kotze, page 231. Copyright 2003. Reprinted by permission of Pearson Education Canada Inc.

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.24

WHAT IS ORGANIZATIONAL CULTURE?

System of shared meaning within an organization that determines to a large extent how employees behave and act

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.25

Dimensions of Organizational Culture

Member identity Group emphasis People focus Unit integration Control Risk tolerance

Reward Conflict tolerance Means-end orientation Open-systems focus

FOM 6.26

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Cultural Affects on Managers

Constrains what managers can and cannot do Constraints are rarely explicit Culture has a link between values and managerial behaviour--what is acceptable and not

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.27

Strong vs. Weak Cultures

Predictability Orderliness Consistency Internal guidelines

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

FOM 6.28