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

2. Dimensions of Organization Structure
Chapter 16
Dimensions of Organization Structure

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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.
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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.
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5. The Nature of 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.
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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.
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7. Figure 16.1 Examples of Organization Charts
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8. Figure 16.1 Examples of Organization Charts [continued]
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9. Advantages and Disadvantages of Division of Labor
Is the extent to which the organization’s work is separated into different jobs to be done by different people
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10. Advantages and Disadvantages of Division of Labor Table 16.1
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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.
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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.
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13. Figure 16.2 Departmentalization by Business Function and by Process
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14. Figure 16.3 Departmentalization by Product or Service
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15. Figure 16.4 Departmentalization by Customer and by Geographic Region
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16. Figure 16.5 Mixed Departmentalization
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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.
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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.
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19. Figure 16.6 Span of Control and Levels in the Administrative Hierarchy
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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.
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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.
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22. Responsibility and Authority
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.
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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.
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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.
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25. Table 16.2 Fayol’s Classic Principles of Organizing
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26. Table 16-2 Fayol’s Classic Principles of Organizing [continued]
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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.
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28. Table 16.3 Characteristics of Likert’s Four Management Systems
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Table 16.3 Characteristics of Likert’s Four Management Systems [continued]
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