Presentation on theme: "Prof. : Vivian Chen Reporter : Arthur Chung. What is organization structure ? Organization structure six key elements. Common organizational design."— Presentation transcript:
What is organization structure ? Organization structure six key elements. Common organizational design. New design option. Why do structure differ ? Organization designs and employee behavior. Summary.
Work Specialization. Departmentalization. Chain of Command. Span of Control. Centralization and Decentralization. Formalization.
Definition : The degree to which tasks in the organization are subdivided into separate jobs. ( or division of labor ) The essence of work specialization is that rather than entire job being done by one individual, it is broken down into a number of steps, with each step being completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entire activity.
Definition : The Basis by which jobs are grouped together. Kinds of Departmentalization Functions. Product of the organization produces. Geography or territory. Particular type of customer the organization seeks to reach.
Definition : The unbroken line of the authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. Authority The right inherent in a managerial position to give orders and to expect to the orders to be obeyed. The unity-of-command principle helps preserve the concept of an unbroken line of authority. Unity-of-command The idea that a subordinate should have only one superior to whom he pr she is directly responsible.
Definition : The number of subordinates a manager can efficiently and effectively direct.
Definition : The degree to which decision making is concentrated at a single point in the organization. ( The rights inherent in one’s position ), decentralization is oppositive.
Definition : The degree to which jobs within the organization are standardized.
The Simple Structure : A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. The Strength : 1. Simplicity. 2. Fast. 3. Flexible. 4. Inexpensive to maintain. 5. Accountability is clearly. The Weakness : 1. It’s difficult to maintain in anything other than small organizations.
The Bureaucracy : A structure with highly routine operating tasks achieved through specialization, very formalization rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. The Strength : 1. The ability to perform standardized activities in a highly efficient manner. The Weakness : 1. It is illustrated in the following dialogue among four executives in one company : 1. Ya know, nothing happens in this happens until we produce something. 2. Wrong. 3. What are you talking about ? 4. Nothing happens here until we sell something. 2. It is something we’ve all experienced at one time or another when have to deal with people who work in these organizations : obsessive concern with following rules.
The Matrix Structure : A structure that creates dual lines of authority and combines functional and product departmentalization. The Strength : 1. It lies in putting like specialists together, which minimizes the number necessary while following the pooling and sharing of specialized resources across products. 2. It lies in its ability to facilitate coordination when the organization has a multiplicity of the complex and interdependent activities. 3. It facilitates the efficient allocation of specialists. The Weakness : 1. The difficulty of coordinating the tasks of diverse functional specialists so that their activities are completed on time and within budget. 2. Ii lies in the confusion it creates, its propensity to foster power struggles, and the stress it places on individuals.
Definition: 1. The use of teams as the central device to coordinate work activities.
Sometimes called the network or modular organization. Definition : A small, core organization that outsources major business functions. Advantage : Flexibility.
Definition : An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.
Mechanistic Model : A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. Organic Model : A structure that is a flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
Innovation Strategy : A strategy that emphasizes the introduction of major new products and services. Cost-Minimization Strategy : A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. Imitation Strategy : A strategy that seeks to move into new products or new markets only after their viability has already been proven.
There is no considerable evidence to support the idea that an organization’s size affects its structure.
The term of technology refers to how an organization transfer its inputs into outputs.
An organization’s environment is composed of institutions or forces outside the organization that potentially affect the organization’s performance. Three-Dimensional Model of the Environment Capacity : support growth. Volatility : Dynamic or stable. Complex : Scarce or Abundant.
To Maximize employee performance and satisfaction, individual differences, such as experience, personality, and the work task, should be taken into account. In addition, national culture influences the preference for structure, so it, too, need to be considered.