1. Chapter 15 Organizational Behavior Nelson & Quick 6th edition
Organizational Design and Structure
Chapter 15 Organizational Behavior Nelson & Quick 6th edition

2. Organizational Design
Organizational Design - the process of constructing and adjusting an organization’s structure to achieve its goals.
organization’s structure
the linking of
departments and
jobs within an
organization
Contextual variables – a set of characteristics that influence the organization’s design processes 2

3. Key Organizational Design Processes
Differentiation
Integration
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4. Differentiation The process of deciding how to divide the work
The process of deciding
how to divide the work
in an organization
Differentiation
Four Dimensions
Manager’s goal orientation
Time orientation
Interpersonal orientation
Formality of structure
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5. Horizontal Differentiation
Differentiation
The degree of differentiation between organizational subunits
Based on employee’s specialized knowledge, education, or training
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6. Vertical Differentiation
Differentiation
The difference in authority and responsibility in the organizational hierarchy
Greater in tall, narrow organizations than in flat, wide organizations
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7. Spatial Differentiation
Differentiation
Geographic dispersion of an organization’s offices, plants, and personnel
Complicates organizational design, but may simplify goal achievement or protection
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8. Differentiation & Complexity in an Organization
Differentiation & Complexity in an Organization
The Greater the
. . . Differention
The Greater the
need for structural . . .
Horizontal
Vertical
Spatial
Width
Height
Breadth
The more structurally differentiated
an organization is, the more complex it is
Complexity refers to the number of activities,
subunits, or subsystems within an organization
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9. Integration The process of coordinating the different parts
Integration
The process of coordinating
the different parts
of an organization
Designed to achieve unity among individuals and groups
Supports a state of dynamic equilibrium - elements of organization are integrated, balanced
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10. Vertical Integration Integration Hierarchical referral
Vertical Integration
Hierarchical referral
Rules and procedures
Plans and schedules
Positions added to the organization structure
Management information systems
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11. Horizontal Integration
Integration
Horizontal Integration
Liaison roles
Task forces
Integrator positions
Teams
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12. Hierarchy of Authority - Specialization -
Formalization -
the degree to which the
organization has official rules,
regulations and procedures
Centralization - the degree
to which decisions are
made at the top of the
organization
Hierarchy of
Authority -
the degree of
vertical
differentiation
across
levels of
management
Specialization -
the degree to
which jobs are
narrowly
defined and
depend on
unique
expertise
Basic
Design
Dimensions
Complexity - the degree
to which many different types
of activities occur in the
organization
Standardization - the
degree to which work activities
are accomplished in a
routine fashion
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13. Machine Bureaucracy - Professional Bureaucracy -
Machine Bureaucracy -
a moderately
decentralized form of
organization that
emphasizes the
technical staff &
standardization of
work processes
Simple Structure -
a centralized form of
organization that
emphasizes the upper
echelon & direct
supervision
Structural
Configurations of
Organizations
Adhocracy -
a selectively
decentralized
form of
organization that
emphasizes the
support staff &
mutual adjustment
among people
Professional
Bureaucracy -
a decentralized
form of
organization that
emphasizes the
operating level
& standardization
of skills
Divisional Form -
a moderately decentralized
form of organization
that emphasizes the
middle level &
standardization of outputs
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14. Basic Design Small Large Dimensions Organizations Organizations
Size
Basic Design Small Large
Dimensions Organizations Organizations
Formalization
Centralization
Specialization
Standardization
Complexity
Hierarchy of authority
Less
High
Low
Flat
More
Low
High
Tall
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15. the degree of interrelatedness of the organization’s various
Technology
Technological
Interdependence -
the degree of interrelatedness
of the organization’s various
technological elements 4

16. Extremes of Environmental Uncertainty
Mechanistic Structure - an organizational design that emphasizes structured activities, specialized tasks, and centralized decision making
Organic Structure - an organizational design that emphasizes teamwork, open communication, and decentralized decision making

17. The Relationship among Key Organizational Design Elements
Context of the organization
Correct size
Current technology
Perceived environment
Current strategy & goals
Influences how manager perceive structural needs
Structural dimensions
Level of formalization
Level of centralization
Level of specialization
Level of standardization
Level of complexity
Hierarchy of authority
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18. Which characterize the organizational processes
Differentiation & Integration
Which influence how well the structure meets its
Purposes
Designate formal
lines of authority
information-
processing patterns
Which influence how well the structure fits the
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Context of the organization

19. Forces Reshaping Organizations
Organization Life Cycle - the differing stages of an organization’s life from birth to death
Globalization
Changes in Information-Processing Technologies
Demands on Organizational Processes
Emerging Organizational Structures

20. Structural Roles of Managers
Roles of Managers Today
1. Strictly adhering to boss
-employee relationships
2. Getting things done by
giving orders
3. Carrying messages up
and down the hierarchy
4. Performing a set of tasks
according to a job description
5. Having a narrow functional
focus
6. Going through channels,
one by one by one
7. Controlling subordinates
Roles of Future Managers
1. Having hierarchical
relationships subordinated
2. Getting things done by
negotiating
3. Solving problems and
making decisions
4. Creating the job through
entrepreneurial projects
5. Having a broad cross-
functional collaboration
6. Emphasizing speed &
flexibility
7. Coaching one’s workers
Management Review, January 1991, Thomas R. Horton.
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