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Organizational Behavior 15th Ed Foundations of Organizational Structure Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall15-1 Robbins.

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Presentation on theme: "Organizational Behavior 15th Ed Foundations of Organizational Structure Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall15-1 Robbins."— Presentation transcript:

1 Organizational Behavior 15th Ed Foundations of Organizational Structure Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall15-1 Robbins and Judge Chapter 15

2 Chapter 15 Learning Objectives After studying this chapter you should be able to: 1.Identify the six elements of an organization’s structure. 2.Identify the characteristics of a bureaucracy. 3.Describe a matrix organization. 4.Identify the characteristics of a virtual organization. 5.Show why managers want to create boundaryless organizations. 6.Demonstrate how organizational structures differ and contrast mechanistic and organic structural models. 7.Analyze the behavioral implications of different organizational designs. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall15-2

3 Identify the six elements of an organization’s structure Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15-3 LO 1 1

4 Identify the six elements of an organization’s structure Work Specialization –By the late 1940s, most manufacturing jobs in industrialized countries were being done this way. –Managers also looked for other efficiencies that could be achieved through work specialization. Repetition of work Training for specialization Increasing efficiency through invention Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15-4 LO 1 1

5 Identify the six elements of an organization’s structure Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15-5 LO 1 1

6 Identify the six elements of an organization’s structure Departmentalization –Grouping jobs together so common tasks can be coordinated is called departmentalization. By functions performed By type of product or service the organization produces By geography or territory By process differences By type of customer Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15-6 LO 1 1

7 Identify the six elements of an organization’s structure Chain of Command –Once a cornerstone in design of organizations, –"an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom." –Two complementary concepts: authority and unity of command. –Authority –Unity-of-command Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15-7 LO 1 1

8 Identify the six elements of an organization’s structure Chain of Command –Less relevant today because of technology and the trend of empowering employees. Operating employees make decisions previously reserved for management. The popularity of self-managed and cross-functional teams. –Many organizations find that enforcing the chain of command is most productive Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15-8 LO 1 1

9 Identify the six elements of an organization’s structure Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15-9 LO 1 1

10 Identify the six elements of an organization’s structure Centralization and Decentralization –Centralization refers to the degree to which decision-making is concentrated at a single point in the organization. –A decentralized organization can act more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienated from those who make decisions that affect their work lives. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 1 1

11 Identify the six elements of an organization’s structure Formalization refers to the degree to which jobs within the organization are standardized. –A highly formalized job gives the job incumbent a minimum amount of discretion. –The greater the standardization, the less input the employee has into how the job is done. –Low formalization—job behaviors are relatively nonprogrammed, and employees have a great deal of freedom to exercise discretion in their work. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 1 1

12 Identify the characteristics of a bureaucracy A bureaucracy is characterized by: –Highly routine operating tasks. –Very formalized rules and regulations. –Tasks grouped into functional departments. –Centralized authority. –Narrow spans of control. –Decision-making that follows the chain of command. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 2 1

13 Identify the characteristics of a bureaucracy Its primary strength is in its ability to perform standardized activities in a highly efficient manner. Weaknesses include subunit conflicts, unit goals dominate, obsessive behavior, covering weak management. The bureaucracy is efficient only as long as employees confront familiar problems with programmed decision rules. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 2 1

14 Describe a matrix organization The Matrix Structure –It combines two forms of departmentalization—functional and product: The strength of functional is putting specialists together. –Product departmentalization facilitates coordination. It provides clear responsibility for all activities related to a product, but with duplication of activities and costs. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 3 1

15 Describe a matrix organization Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 3 1

16 Identify the characteristics of a virtual organization Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 4 1

17 Show why managers want to create boundaryless organizations The boundaryless organization seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. –Uses cross-hierarchical teams –Uses participative decision-making practices –Uses 360-degree performance appraisals Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 5 1

18 Show why managers want to create boundaryless organizations Functional departments create horizontal boundaries. Boundaryless organizations break down geographic barriers. Culture can be a boundary element. Customers perform functions done by management. Telecommuting blurs organizational boundaries. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 5 1

19 Organizational Downsizing The Learner Organization: Organizational Downsizing –The goal of the new organizational forms we’ve described is to improve agility by creating a lean, focused, and flexible organization. –Downsizing is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 5 1

20 Demonstrate how organizational structures differ and contrast mechanistic and organic structural models Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 6 1

21 Demonstrate how organizational structures differ and contrast mechanistic and organic structural models An organization’s structure is a means to help management achieve its objectives. Most current strategy frameworks focus on three strategy dimensions: –innovation, –cost minimization, and –imitation. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 6 1

22 Demonstrate how organizational structures differ and contrast mechanistic and organic structural models Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 6 1

23 Demonstrate how organizational structures differ and contrast mechanistic and organic structural models There is considerable evidence to support that an organization’s size significantly affects its structure. The impact of size becomes less important as an organization expands. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 6 1

24 Demonstrate how organizational structures differ and contrast mechanistic and organic structural models Technology refers to how an organization transfers its inputs into outputs. Every organization has at least one technology. Numerous studies have examined the technology-structure relationship. Organizations engaged in nonroutine activities tend to prefer organic structures. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 6 1

25 Demonstrate how organizational structures differ and contrast mechanistic and organic structural models An organization’s environment includes outside institutions or forces that can affect its performance. Dynamic environments create significantly more uncertainty for managers than do static ones. Any organization’s environment has three dimensions: capacity, volatility, and complexity. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 6 1

26 Demonstrate how organizational structures differ and contrast mechanistic and organic structural models Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 6 1

27 Analyze the behavioral implications of different organizational designs Organization’s structure can have significant effects. A review of the evidence leads to a pretty clear conclusion: you can’t generalize! –Not everyone prefers the freedom and flexibility of organic structures. –Some people are most productive and satisfied when work tasks are standardized and ambiguity minimized. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 7 1

28 Analyze the behavioral implications of different organizational designs Let’s consider employee preferences for work specialization, span of control, and centralization. –Work specialization contributes to higher employee productivity. –No evidence supports a relationship between span of control and employee satisfaction or performance. –Fairly strong evidence links centralization and job satisfaction, meaning that less centralization is associated with higher satisfaction. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 7 1

29 Analyze the behavioral implications of different organizational designs Although research is slim, it does suggest national culture influences the preference for structure. So consider cultural differences along with individual differences when predicting how structure will affect employee performance and satisfaction. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall LO 7 1

30 Summary and Implications for Managers The theme of this chapter is that an organization’s internal structure contributes to explaining and predicting behavior. That is, in addition to individual and group factors, the structural relationships in which people work has a bearing on employee attitudes and behavior. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

31 Summary and Implications for Managers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

32 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall15-32 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall


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