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Microsoft ® PowerPoint Presentation to Accompany Organizational Behavior SEVENTH EDITION Gregory Moorhead and Ricky W. Griffin.

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Presentation on theme: "Microsoft ® PowerPoint Presentation to Accompany Organizational Behavior SEVENTH EDITION Gregory Moorhead and Ricky W. Griffin."— Presentation transcript:

1 Microsoft ® PowerPoint Presentation to Accompany Organizational Behavior SEVENTH EDITION Gregory Moorhead and Ricky W. Griffin

2 Chapter 16 Dimensions of Organization Structure

3 Copyright © by Houghton Mifflin Company. All rights reserved.3 Learning Objectives Define organization structure and discuss its purpose. Describe structural configuration and summarize its four basic dimensions. Discuss two structural policies that affect operations. Explain the dual concepts of authority and responsibility. Explain the classic views of organization structure.

4 Copyright © by Houghton Mifflin Company. All rights reserved.4 The Nature of Organization Structure Organization Defined –An organization is a group of people working together to attain common goals. Organizational Goals –Objectives that management seeks to achieve in pursuing the firm’s purpose. Goals serve to: Motivate people to work together. Keep the organization on track by focusing the attention and action of the members. Give the organization a forward-looking orientation.

5 Copyright © by Houghton Mifflin Company. All rights reserved.5 The Nature of Organization Structure Organization Structure –The system of task, reporting, and authority relationships within which the organization does its work. –Structure defines the form and function of the organization’s activities, along with how the parts of an organization fit together.

6 Copyright © by Houghton Mifflin Company. All rights reserved.6 Structural Configuration Organization Chart –A diagram showing all people, positions, reporting relationships, and lines of formal communication in the organization. –For large organizations, several charts may be necessary to show all positions. Configuration –The configuration of an organization is its shape, which reflects the division of labor and the means of coordinating the divided tasks. –The configuration of organizations can be analyzed in terms of how the two basic requirements of structure – division of labor and coordination of the divided task – are met.

7 Copyright © by Houghton Mifflin Company. All rights reserved.7 Figure 16.1 Examples of Organization Charts

8 Copyright © by Houghton Mifflin Company. All rights reserved.8 Figure 16.1 Examples of Organization Charts [continued]

9 Copyright © by Houghton Mifflin Company. All rights reserved.9 Advantages and Disadvantages of Division of Labor Division of Labor –Is the extent to which the organization’s work is separated into different jobs to be done by different people

10 Copyright © by Houghton Mifflin Company. All rights reserved.10 Advantages and Disadvantages of Division of Labor Table 16.1

11 Copyright © by Houghton Mifflin Company. All rights reserved.11 Coordinating the Divided Tasks Three basic mechanisms are used to help coordinate the divided tasks: –Departmentalization. –Span of control. –Administrative hierarchy. The focus of coordination activities is on: –Grouping tasks in a meaningful manner. –Creating manageable-sized work groups. –Establishing a system of reporting relationships.

12 Copyright © by Houghton Mifflin Company. All rights reserved.12 Coordinating the Divided Tasks [continued] Departmentalization –Is the manner in which divided tasks are combined and allocated to work groups. –Divided tasks can be combined into departments by function, process, product, customer, or geography. Mixed Departmentalization –A mixed departmentalization scheme is often present in very large organizations that have a more complex structure.

13 Copyright © by Houghton Mifflin Company. All rights reserved.13 Figure 16.2 Departmentalization by Business Function and by Process

14 Copyright © by Houghton Mifflin Company. All rights reserved.14 Figure 16.3 Departmentalization by Product or Service

15 Copyright © by Houghton Mifflin Company. All rights reserved.15 Figure 16.4 Departmentalization by Customer and by Geographic Region

16 Copyright © by Houghton Mifflin Company. All rights reserved.16 Figure 16.5 Mixed Departmentalization

17 Copyright © by Houghton Mifflin Company. All rights reserved.17 Coordinating the Divided Tasks Span of Control –The number of people who report to a manager; defines the size of the organization’s work groups. –A manager who has a small span of control can maintain close control over the workers and stay in contact with daily operations.

18 Copyright © by Houghton Mifflin Company. All rights reserved.18 Coordinating the Divided Tasks [continued] Optimal span of control (Henry Mintzberg) depends on: –The coordination requirements within the unit. –The similarity of the tasks in the unit. –The type of information available or needed by unit members. –Differences in the members’ need for autonomy. –The extent to which members need direct access to the supervisor.

19 Copyright © by Houghton Mifflin Company. All rights reserved.19 Figure 16.6 Span of Control and Levels in the Administrative Hierarchy

20 Copyright © by Houghton Mifflin Company. All rights reserved.20 Coordinating the Divided Tasks Administrative Hierarchy –The system of reporting relationships in the organization from the lowest to the highest managerial levels. The size of the administrative hierarchy is inversely related to the span of control: –Organizations with a small span of control have many managers in the hierarchy. –Those with a large span of control have a smaller administrative hierarchy.

21 Copyright © by Houghton Mifflin Company. All rights reserved.21 Structure and Operations Centralization –A structural policy in which decision-making authority is concentrated at the top of the organizational hierarchy. Formalization –The degree to which rules and procedures shape the jobs and activities of employees.

22 Copyright © by Houghton Mifflin Company. All rights reserved.22 Responsibility and Authority Responsibility –An obligation to do something with the expectation of achieving some act or output. Authority –Power that has been legitimized within a particular social context. –Delegation Is the transfer to others of authority to make decisions and use organizational resources. The act of delegation does not relieve the delegating manager of responsibility for outcomes or results.

23 Copyright © by Houghton Mifflin Company. All rights reserved.23 Responsibility and Authority [continued] An Alternative View of Authority –Authority and responsibility are closely related in that managers must have authority to carry out their responsibilities. The Acceptance Theory of Authority –Posits that a manager’s authority depends on the subordinate’s acceptance of the manager’s right to give directions and expect compliance with them.

24 Copyright © by Houghton Mifflin Company. All rights reserved.24 Classic Views of Structure Ideal Bureaucracy (Weber) –Weber’s ideal bureaucracy is characterized by a hierarchy of authority and a system of rules and procedures designed to create an optimally effective system for large organizations. The Classic Principles of Organizing –Henri Fayol first described the essential elements of management as planning, organizing, command, coordination, and control. –Fayol’s principles of organizing have been criticized for ignoring the human element, lacking in specificity, and having no scientific research support.

25 Copyright © by Houghton Mifflin Company. All rights reserved.25 Table 16.2 Fayol’s Classic Principles of Organizing

26 Copyright © by Houghton Mifflin Company. All rights reserved.26 Table 16-2 Fayol’s Classic Principles of Organizing [continued]

27 Copyright © by Houghton Mifflin Company. All rights reserved.27 Classic Views of Structure Human Organization (Rensis Likert) –Supportive Relationships In organizational activities, individuals should be treated such that they experience feelings of support, self-worth, and importance. –Participation The group needs to be involved in decisions that affect it. –Overlapping work groups Work groups which are linked with managers serving as “linking pins” between their supervised work groups and the management group of which the manager is a member.

28 Copyright © by Houghton Mifflin Company. All rights reserved.28 Table 16.3 Characteristics of Likert’s Four Management Systems

29 Copyright © by Houghton Mifflin Company. All rights reserved.29 Table 16.3 Characteristics of Likert’s Four Management Systems [continued]


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