Differentiation Between Marketing and Engineering Basis for Difference Marketing Engineering Goal orientation Time orientation Interpersonal orientation Structure Design Medium run Task oriented More formal Sales volume Long run People oriented Less formal
Hierarchy of Authority – the degree of vertical differentiation across levels of management Specialization – the degree to which jobs are narrowly defined and depend on unique expertise Basic Design Dimensions Formalization – the degree to which the organization has official rules, regulations, and procedures Standardization – the degree to which work activities are accomplished in a routine fashion Complexity – the degree to which many different types of activities occur in the organization Centralization – the degree to which decisions are made at the top of the organization Ben M.
Adhocracy – a selectively decentralized form of organization that emphasizes the support staff and mutual adjustment among people Simple Structure – a centralized form of organization that emphasizes the upper echelon and direct supervision Machine Bureaucracy – a moderately decentralized form of organization that emphasizes the technical staff and standardization of work processes Divisional Form – a moderately decentralized form of organization that emphasizes the middle level and standardization of outputs Professional Bureaucracy – a decentralized form of organization that emphasizes the operating level and standardization of skills Structural Configurations of Organizations Kyle P
Five Structural Configurations of Organization-Kyle P Structural Configuration Prime Coordinating Mechanism Key Part of Organization Type of Decentralization Simple Structure Direct Supervision Upper Echelon Centralization Machine Bureaucracy Standardization of Work Processes Technical Staff Limited Horizontal Decentralization Professional Bureaucracy Standardization of Skills Operating Level Vertical and Horizontal Decentralization Divisionalized Form Standardization of Outputs Middle Level Limited Vertical Decentralization Adhocracy Mutual Adjustment Support Staff Selective Decentralization
Contextual Variables – a set of characteristics that influences the organization’s design processes Size Environment Technology Strategy and Goals
Basic Design Small Large Dimensions Organizations Organizations Formalization Centralization Specialization Standardization Complexity Hierarchy of authority Less High Low Flat More Low High Tall Implications of Size
Relationship Between Technology and Basic Design Dimensions Key 1 Formalization 4 Standardization 2 Centralization 5 Complexity 3 Specialization 6 Hierarchy of Authority Craft 1. Moderate 2. Moderate 3. Moderate 4. Low moderate 5. High 6. Low Routine 1. High 2. High 3. Moderate 4. High 5. Low 6. High Nonroutine 1. Low 2. Low 3. Low 4. Low 5. High 6. Low Engineering 1. Moderate 2. Moderate 3. High 4. Moderate 5. Moderate 6. Moderate Few Exceptions Many Exceptions Task Variability Ill-defined and Unanalyzable Well-defined and Analyzable Problem Analyzability Built from C. Perrow, “A Framework for the Comparative Analysis of Organization,” American Sociological Review, April 1967, 194-208
Structural Roles of Managers Roles of Managers Today 1. Strictly adhering to boss– employee relationships 2. Getting things done by giving orders 3. Carrying messages up and down the hierarchy 4. Performing a set of tasks according to a job description 5. Having a narrow functional focus 6. Going through channels, one by one by one 7. Controlling subordinates Roles of Future Managers 1. Having hierarchical relationships subordinated 2. Getting things done by negotiating 3. Solving problems and making decisions 4. Creating the job through entrepreneurial projects 5. Having a broad cross- functional collaboration 6. Emphasizing speed and flexibility 7. Coaching one’s workers Management Review, January 1991, Thomas R. Horton.