Presentation on theme: "Chapter 7 and 8 Organizational Structure and Managing Change."— Presentation transcript:
1 Chapter 7 and 8Organizational Structure and Managing Change
2 Designing Organizational Structure OrganizingThe process by which managers establish the structure of working relationships among employees to achieve goalsOrganizational StructureFormal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals
3 Factors Affecting Organizational Structure Figure 7.1The Organizational EnvironmentThe quicker the environment changes, the more problems face managers.Structure must be more flexible (i.e., decentralized authority) when environmental change is rapid.StrategyDifferent strategies require the use of different structuresA differentiation strategy needs a flexible structure, low cost may need a more formal structureIncreased vertical integration or diversification also requires a more flexible structureTechnologyThe combination of skills, knowledge, tools, equipment, computers and machines used in the organizationMore complex technology makes it harder for managers to regulate the organizationManagers must take into account all four factors (environment, strategy, technology and human resources) when designing the structure of the organization
4 Job Design Job Design Job Enlargement Job Enrichment The process by which managers decide how to divide tasks into specific jobsJob EnlargementIncreasing the number of different tasks in a given job by changing the division of laborJob EnrichmentIncreasing the degree of responsibility a worker has over a job
5 Departmentalization- by Function Functional StructureAn organizational structure composed of all the departments that an organization requires to produce its goods or servicesAdvantagesEncourages learning from others doing similar jobsEasy for managers to monitor and evaluate workersDisadvantagesDifficult for departments to communicate with othersPreoccupation with own department and losing sight of organizational goals
6 Departmentalization: by Divisions Divisional StructureAn organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customerDivisions create smaller, manageable parts of a firmDivisions develop a business-level strategy to competeDivisions have marketing, finance, and other functionsFunctional managers report to divisional managers who then report to corporate management
7 Departmentalization: by Product Structure Each product line or business is handled by a self-contained divisionAdvantagesAllows functional managers to specialize in one product areaDivision managers become experts in their areaRemoves need for direct supervision of division by corporate managersDivisional management improves the use of resources
8 Product, Market, and Geographic Structures Figure 7.4Product, Market, and Geographic Structures
9 Departmentalization: by Geographic Geographic StructureEach region of a country or area of the world is served by a self-contained divisionGlobal geographic structureManagers locate different divisions in each of the world regions where the organization operatesGenerally, occurs when managers are pursuing a multi-domestic strategy
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
11 Global Geographic and Global Product Structures Figure 7.5
12 Departmentalization: By market Market StructureEach kind of customer is served by a self-contained divisionAlso called customer structureMatrix StructureAn organizational structure that simultaneously groups people and resources by function and product
13 Matrix Structure Figure 7.6 The matrix structure is very flexible and can respond rapidly to the need for changeEach employee has two bosses (functional manager and product manager) and possibly cannot satisfy both
14 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 subordinatesCross-functional teamgroup of managers brought together from different departments to perform organizational tasks
15 Coordinating Functions and Divisions AuthorityThe power to hold people accountable for their actions and to make decisions concerning the use of organizational resourcesHierarchy of AuthorityAn organization’s chain of command, specifying the relative authority of each manager
16 Allocating Authority Span of Control Line Manager Staff Manager The number of subordinates that report directly to a managerLine Managersomeone in the direct line or chain of command who has formal authority over people and resourcesStaff ManagerSomeone responsible for managing a specialist function, such as finance or marketing.
17 Tall & Flat Organizations Figure 7.9Tall structures have many levels of authority and narrow spans of controlFlat structures have fewer levels and wide spans of control
19 Tall and Flat Organizations Decentralizing authoritygiving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources.
20 Organization Change Organization Change Top-down change Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectivenessTop-down changeA 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 organizationBottom-up changeA gradual approach to change in which managers at all levels work together to develop a plan for change
21 Four Steps in the Organizational Change Process
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.
23 Resistance to Change and Ways to Overcome Resistance Why employees resist change?Uncertainty--- Fear of the unknown outcome of changeLearning anxiety--- Nervousness or fear of change that requires learning new ways of workingSelf-interest--- People resist change that threatens their own self interestLoss --- Lost job or change in salary/benefitsControl --- Change can also result in an actual or perceived loss of power, status, security and control, feeling that someone else is controlling their destiny
24 Overcome Resistance to Change Ways to overcome resistance to change:Develop a positive trust climate for change --- Develop and maintain good human relationsPlan --- 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 employeesCreate a win-win situation --- Company should guarantee that employees will not lose jobs, pay or other loses, at least within a short period of timeInvolve employees --- Employees who have participated in developing changes are more committed to them than those who have notProvide support --- Give advance notice and providing training before the change take place.