1. 17 Management: Principles and Practices Griffin
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2. The Nature of Organization Design
The structural elements and the relationships among the elements used to manage the organization.
A means to implement strategies and plans to achieve organizational goals.
Organization Design Concepts
Organizations are not designed and then left intact.
Organizations are in a continuous state of change.
Designs for larger organizations are extremely complex and have many nuances and variations.
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3. Bureaucratic Model Advantages Disadvantages Efficiency in function
Organizational inflexibility and rigidity
Prevention of favoritism
Neglect of social and human processes
Recognition of and requirement for expertise
Belief in “one best way” to design organizations
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4. Behavioral Model: Likert System
Renesis Likert
Organizations that pay attention to work groups and interpersonal processes are more effective than bureaucratic organizations.
System 1
Exploitative
Authoritative
Job-centered leader behavior
System 2
Benevolent
Authoritative
System 3
Consultative
System 4
Participative
Employee-centered leader behavior
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5. Situational Influences on Organization Design
Environment
Technology
Organizational Life Cycle
Organization Design
Size
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6. Core Technology and Organization Design
Woodward’s Basic Forms of Technology
Unit or small-batch technology
Large batch/mass production
Continuous process
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7. Strategy and Organization Design
Corporate-Level Strategies
Single-product strategy
Related or unrelated diversification
Portfolio approach to managing strategic business units
Organizational Functions
Major functions of the organization can influence an organization’s design.
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8. Organizational Strategies
Business-Level Strategies
Generic Competitive Strategies
Defender
Differentiation
Prospecting
Cost Leadership
Analyzer
Focus
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9. Basic Organization Designs
Functional or U-form (Unitary) Design
Conglomerate or H-form (Holding) Design
Divisional or M-form (Multidivisional) Design
Matrix Design
Hybrid Designs
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10. The Future of Organization Design
Emerging Organization Design Issues
Team-based organizations
Virtual organizations
Learning organizations
International/global organizations
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11. International Organization Design Issues
Establish an international operating group?
Make international operations an autonomous subunit?
Create an international division?
Competing Effectively in Global Markets
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12. Key Terms organization design bureaucracy behavioral model
System 1 design
System 4 design
situational view of organization design
technology
mechanistic organization
organic organization
differentiation
integration
organization size
organizational life cycle
functional design
conglomerate design
divisional design
matrix design
hybrid design
team organization
virtual organization
learning organization
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