1. COMMUNICATION IN ORGANIZATIONS COMMUNICATION IN ORGANIZATIONS ENVIRONMENT AND THE TYPE TWO ORGANIZATION Lecture 5c

2. THE ISSUE OF OVERLOAD LEADS TO TYPE TWO STRUCTURE THE ISSUE OF OVERLOAD LEADS TO TYPE TWO STRUCTURE TOO MUCH INFORMATION AND DECISIONS AS ORG. GROWS TOO MUCH INFORMATION AND DECISIONS AS ORG. GROWS UNLESS BOSS BEGINS TO UNLESS BOSS BEGINS TO SEPARATE FUNCTIONS SEPARATE FUNCTIONS -NEW STRUCTURE - DIFFERENTIATED BY FUNCTION - SPECIALIZATION IS EFFICIENT AND AS SIZE INCREASES AND AS SIZE INCREASES DELEGATE SOME AUTHORITY TO ASSISTANTS TO MANAGE EACH FUNCTION DELEGATE SOME AUTHORITY TO ASSISTANTS TO MANAGE EACH FUNCTION -VERTICAL DECENTRALIZATION THE ORG. BEGINS TO FAIL THE ORG. BEGINS TO FAIL

3. The B.A.R. and Grille

4. THE ISSUE OF OVERLOAD LEADS TO TYPE TWO STRUCTURE THE ISSUE OF OVERLOAD LEADS TO TYPE TWO STRUCTURE VERTICAL DECENTRALIZATION - OR DELEGATION - OF AUTHORITY- LIMITED TO A PARTICULAR FUNCTION VERTICAL DECENTRALIZATION - OR DELEGATION - OF AUTHORITY- LIMITED TO A PARTICULAR FUNCTION NO LONGER AN ASSISTANT BUT A MANAGER NO LONGER AN ASSISTANT BUT A MANAGER CAN CONTROL AND COORDINATE WITHIN FUNCTION CAN CONTROL AND COORDINATE WITHIN FUNCTION

5. TYPE TWO ORGANIZATION STRUCTURE IS EFFICIENT TYPE TWO ORGANIZATION STRUCTURE IS EFFICIENT BOTH CONTRIBUTE TO ORGANIZATIONAL GROWTH BOTH CONTRIBUTE TO ORGANIZATIONAL GROWTH ORG. BEGINS TO DO FEWER THINGS BETTER - MORE GROWTH MEANS ENVIRONMENT CONTROL ORG. BEGINS TO DO FEWER THINGS BETTER - MORE GROWTH MEANS ENVIRONMENT CONTROL CHANGES ENVIRONMENTAL PERCEPTION FROM MODERATELY HIGH UNCERTAINY TO LOW UNCERTAINTY CHANGES ENVIRONMENTAL PERCEPTION FROM MODERATELY HIGH UNCERTAINY TO LOW UNCERTAINTY DIFFERENTIATION BY FUNCTION: SPECIALIZATION IS EFFICIENT DIFFERENTIATION BY FUNCTION: SPECIALIZATION IS EFFICIENT VERTICAL DECENTRALIZATION - OR DELEGATION - OF VERTICAL DECENTRALIZATION - OR DELEGATION - OF AUTHORITY (MANAGER CAN CONTROL AND AUTHORITY (MANAGER CAN CONTROL AND COORDINATE WITHIN FUNCTION) IS ALSO EFFICIENT COORDINATE WITHIN FUNCTION) IS ALSO EFFICIENT

6. BECOMING A MACHINE ORGANIZATION FROM A SIMPLE STRUCTURE BECOMING A MACHINE ORGANIZATION FROM A SIMPLE STRUCTURE PRES. ASSTASSTASST DIRECT SUPERVISION - MUTUTAL ADJUSTMENT NO FUNCTIONAL DIFFERENTIATION LOW SPECIALIZATION OF WORK

7. BECOMING A MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW BECOMING A MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW PRES. AsstAsst Mgr. Mfg. Mgr. Sales Mgr. Fin. AsstAsst AsstAsst * - - - - - = FUNCTIONAL D.O.L * VERTICAL DELEGATION OF AUTHORITY FROM STRATEGIC APEX FROM STRATEGIC APEX * MUTUAL ADJUST. WITHIN FUNCTIONS

8. THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW Mgr. Sales PRES. Mgr. Mfg. Mgr. Fin. Asst. Asst ADD MORE PEOPLE AND BEGIN JOB SPECIALIZATION WITHIN FUNCTIONS

9. THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW Mgr. Sales PRES. Mgr. Mfg. Mgr. Fin. Asst. Asst MFG. MIGHT INCLUDE 1. RECEIVING PARTS 2. ASSEMBLY 3. SHIPPING

10. THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW Mgr. Sales PRES. Mgr. Mfg. Mgr. Fin. Asst. Asst MFG. INCLUDE 1. RECEIVING PARTS 2. ASSEMBLY 3. SHIPPING IF MORE WORK MEANS MORE PEOPLE - ALSO MEANS LESS CERTAINTY - SO BEGIN WRITTEN JOB DESCRIPTIONS AND ADD MORE DIRECT SUPERVISION

11. THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW Vp. Sales Vp. Mfg. Vp. Fin. Mgr. Mgr. S S S - - - - - = FUNCTIONAL D.O.L. SPECIALIZ’ TION FORMAL JOB DESCRIPS. ADDING LAYERS FORMAL COMMUNIC. PRES.

12. SUMMARY: FUNCTIONS AND ORGANIZATION SIZE AND AGE SUMMARY: FUNCTIONS AND ORGANIZATION SIZE AND AGE IN SMALLER, YOUNGER ORGS. - BOSS DOES IN SMALLER, YOUNGER ORGS. - BOSS DOES MANAGERIAL FUNCTION PLUS ALL OTHERS. INDIVIDUAL STAFF CAN DO SOME AS LONG AS BOSS AGREES. IN GROWING, MATURING ORGS. FUNCTIONS IN GROWING, MATURING ORGS. FUNCTIONS ARE SEPARATED INTO HIGHLY SPECIALIZED DEPARTMENTS OR UNITS (DIFFERENT PEOPLE GROUPED TOGETHER BY FUNCTION) (DIFFERENT PEOPLE GROUPED TOGETHER BY FUNCTION) DELEGATION OF AUTHORITY COMES WITH NEW STRUCTURE. DELEGATION OF AUTHORITY COMES WITH NEW STRUCTURE.