Presentation on theme: "7-1 Chapter 7 and 8 Organizational Structure and Managing Change."— Presentation transcript:
7-1 Chapter 7 and 8 Organizational Structure and Managing Change
7-2 Designing Organizational Structure Organizing The process by which managers establish the structure of working relationships among employees to achieve goals Organizational Structure Formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals
7-4 Job Design Job Design The process by which managers decide how to divide tasks into specific jobs Job Enlargement Increasing the number of different tasks in a given job by changing the division of labor Job Enrichment Increasing the degree of responsibility a worker has over a job
7-5 Departmentalization- by Function Functional Structure An organizational structure composed of all the departments that an organization requires to produce its goods or services Advantages Encourages learning from others doing similar jobs Easy for managers to monitor and evaluate workers Disadvantages Difficult for departments to communicate with others Preoccupation with own department and losing sight of organizational goals
7-6 Departmentalization: by Divisions Divisional Structure An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer
7-7 Departmentalization: by Product Structure Product Structure Each product line or business is handled by a self- contained division Advantages Allows functional managers to specialize in one product area Division managers become experts in their area Removes need for direct supervision of division by corporate managers Divisional management improves the use of resources
7-8 Figure 7.4 Product, Market, and Geographic Structures
7-9 Departmentalization: by Geographic Geographic Structure Each region of a country or area of the world is served by a self-contained division Global geographic structure Managers locate different divisions in each of the world regions where the organization operates Generally, occurs when managers are pursuing a multi-domestic strategy
7-10 Departmentalization Global Product Structure Each product division, not the country or regional managers, takes responsibility for deciding where to manufacture its products and how to market them in foreign countries
7-11 Global Geographic and Global Product Structures Figure 7.5
7-12 Departmentalization: By market Market Structure Each kind of customer is served by a self- contained division Also called customer structure Matrix Structure An organizational structure that simultaneously groups people and resources by function and product
7-13 Matrix Structure Figure 7.6
7-14 Product Team Structure Product Team Structure Employees are permanently assigned to a cross- functional team and report only to the product team manager or to one of his direct subordinates Cross-functional team group of managers brought together from different departments to perform organizational tasks
7-15 Coordinating Functions and Divisions Authority The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources Hierarchy of Authority An organization’s chain of command, specifying the relative authority of each manager
7-16 Allocating Authority Span of Control The number of subordinates that report directly to a manager Line Manager someone in the direct line or chain of command who has formal authority over people and resources Staff Manager Someone responsible for managing a specialist function, such as finance or marketing.
7-17 Tall & Flat Organizations Figure 7.9
7-18 Tall & Flat Organizations Figure 7.9
7-19 Tall and Flat Organizations Decentralizing authority giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources.
7-20 Organization Change Organization Change Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness Top-down change A fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do, and then move quickly to implement changes throughout the organization Bottom-up change A gradual approach to change in which managers at all levels work together to develop a plan for change
7-21 Four Steps in the Organizational Change Process
7-22 Description on Organizational Change Process 1. Recognize the need for change: The change agent can use a variety of techniques to diagnose problems in need of changes to solve them. 2.Identify possible resistance to the change and plan how to overcome it: Follow the guidelines in step 1. 3.Plan the change interventions: Based on the diagnosis of the problem, the appropriate intervention must be selected. 4.Implement the change interventions: The change agent, or someone selected, conducts the intervention to bring about the desired change. 5.Control the change: Follow up to ensure that the change is implemented and maintained. Make sure the objective is met. If not, take corrective action.
7-23 Resistance to Change and Ways to Overcome Resistance Why employees resist change? Uncertainty--- Fear of the unknown outcome of change Uncertainty--- Fear of the unknown outcome of change Learning anxiety--- Nervousness or fear of change that requires learning new ways of working Learning anxiety--- Nervousness or fear of change that requires learning new ways of working Self-interest--- People resist change that threatens their own self interest Self-interest--- People resist change that threatens their own self interest Loss --- Lost job or change in salary/benefits Loss --- Lost job or change in salary/benefits Control --- Change can also result in an actual or perceived loss of power, status, security and control, feeling that someone else is controlling their destiny Control --- Change can also result in an actual or perceived loss of power, status, security and control, feeling that someone else is controlling their destiny
7-24 Overcome Resistance to Change Ways to overcome resistance to change: Develop a positive trust climate for change --- Develop and maintain good human relations Plan --- Take good planning. Identify the possible resistance to change and plan how to overcome it. Communication ---Clearly state why the change is needed and how it will affect company or employees Create a win-win situation --- Company should guarantee that employees will not lose jobs, pay or other loses, at least within a short period of time Involve employees --- Employees who have participated in developing changes are more committed to them than those who have not Provide support --- Give advance notice and providing training before the change take place.