Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.1 Chapter 6 Organizational Designs

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.2 Learning Outcomes Identify and define the six elements of organization structure Describe the advantages and disadvantages of work specialization Contrast authority and power Identify the five different ways by which management can departmentalize Contrast mechanistic and organic organizations Summarize the effect on organization structures of strategy, size, technology, and environment (continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.3 Learning Outcomes (continued) Contrast the divisional and functional structures Explain the strengths of the matrix structure Describe the boundaryless organization and what elements have contributed to its development Explain what the term learning organization means Describe what the term organization culture means

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.4 The framework for dividing, assigning, and coordinating work Developments in or changes to the structure of an organization Organization Structure Organization Design

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.5 Key Elements of Organization Structure DepartmentalizationSpan of Control Work Specialization Chain of Command Authority and Responsibility Centralization vs. Decentralization

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.6 Work Specialization High Low High Productivity Work Specialization Job is broken down into a number of steps Each step is completed by a separate individual Makes efficient use of the diversity of skills that workers have

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.7 The Chain of Command District A District B District C District D District E District F District G Region 1 Region 2 Region 3 Region 4 Region 5 Vice President Vice President Vice President Vice President Vice President Chief Executive Officer Executive Vice President Executive Vice President President

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.8 Span of Control Number of employees that an manager can manage effectively Increased over the last several years Contingency variables impact number

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.9 Authority vs. Responsibility Rights inherent in managerial position to give orders and expect them to be followed Related to one’s position--not the characteristics of person Obligation to perform Goes hand-in-hand with authority

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.10 Marketing Human Resources ProductionAccountingFinance Chief Executive Officer Research and Development The Concept of Authority

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.11 Line Authority Level of authority that entitles manager to direct the work of an employee Contributes directly to the achievement of organizational objectives

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.12 Finance Accounting Marketing Human Resources Research and Development Production The Concept of Power Function Authority Level The Power Core

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.13 ExpertLegitimate Coercive Referent Reward Power

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.14 The Degree of Centralization Higher Employee Empowerment Centralization Decentralization Higher Lower Top Management Control Lower

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.15 Five Ways to Departmentalize Functional Product Customer Geographic Process

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.16 Contingency Variables Affecting Structure MECHANISTIC Rigid hierarchical relationships Fixed duties Formal communication channels Centralized authority ORGANIC Collaboration (both vertical and horizontal) Adaptable duties Information communication Decentralized authorized

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.17 Contingency Factors and Organization Design Strategy Size Environmental Uncertainty Technology

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.18 Centralized Authority Little Formalization Few Departments Wide Spans of Control The Simple Structure

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.19 The Bureaucracy Divisional Structure Functional Structure

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.20 Allocation of Specialists Clear Accountability Dual Chain of Command The Matrix Structure Cross-Functional Coordination

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.21 Matrix Structure Sample

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.22 The Team-Based Structure Hold Teams Accountable for Results of Work Empower Employees to Make Decisions

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.23 Boundaryless Organization Globalization of markets and competitors Rapidly changing technology Need for rapid innovation

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.24 The Learning Organization Organizational Design Boundaryless Teams Empowerment Leadership Shared vision Collaboration Information Sharing Open Timely Accurate Organizational Culture Strong mutual relationships Sense of community Caring Trust LEARNING ORGANIZATION Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter, and Robin Stuart-Kotze, page 231. Copyright © Reprinted by permission of Pearson Education Canada Inc.

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.25 WHAT IS ORGANIZATIONAL CULTURE? System of shared meaning within an organization that determines to a large extent how employees behave and act

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.26 Dimensions of Organizational Culture Member identity Group emphasis People focus Unit integration Control Risk tolerance Reward Conflict tolerance Means-end orientation Open-systems focus

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.27 Cultural Affects on Managers Constrains what managers can and cannot do Constraints are rarely explicit Culture has a link between values and managerial behaviour--what is acceptable and not

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 6.28 Strong vs. Weak Cultures Predictability Orderliness Consistency Internal guidelines