王青 - 管理学院 - 上海交通大学 Organizational Structure Organizational Structure 1.Concept of OrganizationConcept 2.Principle of Org. DesignPrinciple 3. Structure Structure 4. Trend & Issue of Org.Trend & Issue of Org

王青 - 管理学院 - 上海交通大学 6-2 Designing Organizational Structure Organizing: the process by which managers establish working relationships among employees to achieve goals.

王青 - 管理学院 - 上海交通大学 6-3 Principle of Organizational Design Vertical dimension Unity of Command Centralization & Decentralization Authority & Responsibility Span of Management/control Span Horizontal dimension Division of Labor Departmentalization

王青 - 管理学院 - 上海交通大学 6-4 The principle that a subordinate should have one n only one superior to whom he or she is directly responsible. Principle-Unity of Command

王青 - 管理学院 - 上海交通大学 6-5 Embarrassing Situation

王青 - 管理学院 - 上海交通大学 6-6 Authority & Responsibility Authority : Authority The rights inherent lie in a managerial position to give orders and expect them to be obeyed. Responsibility: Responsibility An obligation to perform assigned activities.

王青 - 管理学院 - 上海交通大学 6-7 Authority Line authority: the authority that entitles a manager to direct the work of a subordinate. Staff authority: authority given to individuals who support,assist,and advise others who have line authority. Chain of command : the flow of authority from the top to the bottom of an organization.

王青 - 管理学院 - 上海交通大学 6-8 Executive Director Assistant to the Executive Director Director of Personnel Director of Purchasing Director of Operation Other Directors Unit 1 Manager Unit 2 Manager PersonnelOperationPurchasingOther

王青 - 管理学院 - 上海交通大学 6-9 Theory of Authority Acceptance theory of authority: The theory that authority comes from the willingness of subordinates to accept it. The classical view: The rights inherently lie in one’s formal organizational position, if an order is given, it would be obeyed.

王青 - 管理学院 - 上海交通大学 6-10 Responsibility Equating responsibility and authority When managers delegate authority, responsibility must be given as well.

王青 - 管理学院 - 上海交通大学 6-11 Centralization Centralization :lower managers are not capable at making decisions. Validity : More stable environment. Decision is significant. Company is large. Disadvantage: Face crisis or failure risk.

王青 - 管理学院 - 上海交通大学 6-12 Decentralization Decentralization: lower managers are capable at making decisions. Validity: uncertain Environment. Decision is minor Company is geographically dispersed. Centralization-Decentralization is a relative

王青 - 管理学院 - 上海交通大学 6-13 Span of Control The number of subordinates a manager can supervise efficiently and effectively

王青 - 管理学院 - 上海交通大学 6-14 管理跨度 概念：一个上司能有效指挥的下属个数 。 管理跨度的意义意义 管理跨度的现代观点现代观点 影响管理跨度的因素

王青 - 管理学院 - 上海交通大学 6-15 管理跨度的对比

王青 - 管理学院 - 上海交通大学 6-16 管理跨度的意义 管理跨度决定组织层次和管理人员的数目， 进而决定了组织的工作效率． 组织层次与沟通效率： 人力成本与经济效率

王青 - 管理学院 - 上海交通大学 6-17 管理跨度的现代观点 赞成尽量扩大管理跨度 → 有的拓宽到１０ ～２０个 → 形成扁平化的组织结构． 扩大管理跨度是否会影响管理效果？

王青 - 管理学院 - 上海交通大学 6-18 影响管理跨度的因素 下属的素质； 下属工作的相似性； 任务的复杂性； 下属工作地点的远近； 管理信息系统的先进程度； 组织文化的凝聚力； 管理风格

王青 - 管理学院 - 上海交通大学 6-19 Contrasting Spans of Control Assuming Span of 4 Assuming Span of Operators: 4096 Managers : 1365 level : 7 Operators:4096 Managers: 585 Level: 5

王青 - 管理学院 - 上海交通大学 6-20 Departmentalization The process of grouping individuals into separate units or departments to accomplish organization goals Functional departmentalization Product & Service departmentalization Product & Service departmentalization Geographic Departmentalization Market or Customer Departmentalization Process departmentalization Global structure

王青 - 管理学院 - 上海交通大学 6-21 Grouping activities by functions performed. Functional departmentalization

王青 - 管理学院 - 上海交通大学 6-22 Functional Departmentalization Executive Director Director of Personnel Director of Purchasing Director of Operation Other Directors Unit 1 Manager Unit 2 Manager PersonnelOperationPurchasingOther

王青 - 管理学院 - 上海交通大学 6-23 divisions created according to the type of product or service. Product & Service departmentalization

王青 - 管理学院 - 上海交通大学 6-24 Product & Service Structure Figure 8.4a

王青 - 管理学院 - 上海交通大学 6-25 Geographic structure: divisions based on the area of a country or world served. Geographic Departmentalization

王青 - 管理学院 - 上海交通大学 6-26 Geographic Structure

王青 - 管理学院 - 上海交通大学 6-27 Market structure: divisions based on the types of customers served. Market or Customer Departmentalization

王青 - 管理学院 - 上海交通大学 6-28 Market or Customer Departmentalization Figure 8.4c

王青 - 管理学院 - 上海交通大学 6-29 Process departmentalization Grouping activities on the basis of product or customer flow.

王青 - 管理学院 - 上海交通大学 6-30 Process departmentalization

王青 - 管理学院 - 上海交通大学 6-31 Global Structures When managers find different problems or demands across the globe, global solutions are needed. Global geographic structure: different divisions serve each world region. Global product structure: Customers in different regions buy similar products so firms keep most functional work at home and set up a division to market product abroad.

王青 - 管理学院 - 上海交通大学 6-32 Structures A division is a collection of functions working together to produce a product. According the method of Departmentalization Three factors for every org. Complexity Formalization Centralization

王青 - 管理学院 - 上海交通大学 6-33 Division of Structures Mechanistic: A structure that is high in complexity, formalization, and centralization. Organic: A structure that is low in complexity, formalization, and centralization.

王青 - 管理学院 - 上海交通大学 6-34 Contrast of Main Division MechanisticOrganic * Rigid hierarchical relationship *Fixed duties *Formalized communication *Centralized decision authority *Collaboration (both vertical and horizontal) *Adaptable duties *Informal communication *Decentralized decision authority

王青 - 管理学院 - 上海交通大学 6-35 Factors Affecting Organizational Design Environment Strategy Human Resources Technology Determine design or organizational structure Determine design or organizational structure Figure 8.1

王青 - 管理学院 - 上海交通大学 6-36 n Structure must be more flexible when environmental change is rapid. n Organic structure is a good choice in this case. Environment and Structure

王青 - 管理学院 - 上海交通大学 6-37 n Strategy: Different strategies require the use of different structures. Strategy and Structure 战略类型适应结构类型 简单结构单一产品有机式 纵向一体化 复杂的战略多样化经营机械式 * 创新战略有机式 * 最求稳定和效率机械式

王青 - 管理学院 - 上海交通大学 6-38 Technology & Structure n Unit Production: The production of items in units or small batches. n Mass Production : automated machines make high volumes of standard products. n Process Production: totally mechanized systems of automatic machines.

王青 - 管理学院 - 上海交通大学 6-39 Human Resources & Structure n Higher skilled workers who need to work in teams usually need a more flexible structure. ----Organic Structure.

王青 - 管理学院 - 上海交通大学 6-40 ?The Type of Structure Mechanistic : Functional structure Functional Divisional structure Divisional Organic: Simple structure Matrix structure Team-based structure Network structure Network Hybrid structure

王青 - 管理学院 - 上海交通大学 6-41 Simple structure An organizational design that is low in complexity and formalization but high in centralization

王青 - 管理学院 - 上海交通大学 6-42 Simple structure Boss of The Supermarket Staff 1Staff 3Staff 4CasherStaff 2

王青 - 管理学院 - 上海交通大学 6-43 Functional structure Function: people working together with similar skills, tools or techniques to perform their jobs.

王青 - 管理学院 - 上海交通大学 6-44 A Sample of Pier 1’s Functional Structure Figure 8.3

王青 - 管理学院 - 上海交通大学 6-45 Functional structure Advantage: Workers can learn from others doing similar tasks. Easy for managers to monitor and evaluate workers. Disadvantage: Hard for one department to communicate with others. Managers can become preoccupied with their department and forget the firm

王青 - 管理学院 - 上海交通大学 6-46 ?Divisional structure An organization structure made up of autonomous self-contained units Advantage : Disadvantage:

王青 - 管理学院 - 上海交通大学 6-47 Divisional structure

王青 - 管理学院 - 上海交通大学 6-48 ?Matrix Structure Matrix structure: managers group people by function and product teams simultaneously. Advantage: Disadvantage:

王青 - 管理学院 - 上海交通大学 6-49 Matrix Structure Figure 8.7a CEO Func. Managers Managers SalesDesignProduction Product team A Product team B Product team C Product Team = two boss employee Team Managers

王青 - 管理学院 - 上海交通大学 6-50 Team-based Structure Product Team Structure: The members are permanently assigned to the team and empowered to bring a product to market.

王青 - 管理学院 - 上海交通大学 6-51 Product Team Structure CEO Func. Managers Managers SalesDesignProduction Manufacturing = Product Team Manager= Team member Figure 8.7b

王青 - 管理学院 - 上海交通大学 6-52 ?Network Structure a whole series of strategic alliances. Created between suppliers, manufacturers, and distributors. Advantage: Disadvantage:

王青 - 管理学院 - 上海交通大学 6-53 Network Structure

王青 - 管理学院 - 上海交通大学 6-54 Hybrid Structures Many large organizations have divisional structures where each manager can select the best structure for that particular division. One division may use a functional structure, one geographic, and so on. This ability to break a large organization into many smaller ones makes it much easier to manage.

王青 - 管理学院 - 上海交通大学 6-55 Trend & Issue of Org. Coordinating Function :To ensure sufficient coordination between functions, managers delegate authority. Tall & Flat org: Tall structures have many levels of authority relative to the organization’s size.  Communication gets difficult and Communications can also become garbled.  More time being taken to implement decisions. Flat structures have few levels but wide spans of control.  Results in quick communications but can lead to overworked managers.