1. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-1 Chapter Designing effective organization 15

2. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-2 The mechanistic model The principle of specialization The principle of unity direction The principle of authority and responsibility

3. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-3 Bureaucracy Max weber made important contributions to mechanistic model Bureaucracy has various meanings: -Concept of government by bureaus without participation by government -Negative consequences of large organization -particular way to organize collective activities -The way society develop hierarchies of control so that one group can dominate other group.

4. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-4 Bureaucratic structure (Weber) “ superior to any other form in precision, ini stability, in the stringency of its discipline and its reliability. It thus make possible a high degree of calculability of results for the heads of organization and for those acting in relation to it”

5. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-5 Bureaucracy compares to other organization “ as does the machine with non mechanical mode of organization”

6. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-6 High level production and efficiency Highly complex because its emphasis on specialization of labor Highly centralized because its emphasis in authority and accountability Highly formalized because of its emphasis on function as the basis for department

7. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-7 Organic Model Organizational design emphasizing importance of flexibility and development through limited use of rules and procedures, decentralized authority, and relatively low degrees of specialization

8. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 16-8 De-emphasize of specialization and emphasize on increasing job range Decentralize, delegation authority, and increasing job depth Relatively informal, emphasis on product and customer bases for department