1. Royal College of Surgeons in Ireland Institute of Leadership
Georgina Corscadden
2017
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2. With the end in mind
Show how globalization affects organizational structure
Show how globalization affects organizational structure
Analyze the behavioral implications of different organizational designs
Demonstrate how organizational structures differ
Compare and contrast the virtual and boundary-less organizations
Understand the different types of organisational structures
Identify six elements of an organization’s structure
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3. question
What is an
organisation?
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4. answer A collection of people engaged in related work or service
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5. Individually, draw your idea of your organization or unit
Team: explain your images to each other 15
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6. Organisational structure
Defines how job tasks are formally divided, grouped,
and coordinated
Key elements to be addressed:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization
Formalization
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7. Element: work specialisation Also known as division of labour
Describes the degree to which activities in the
organization are subdivided into separate jobs
Benefits: Greater efficiency and lower costs
A key part of organizational structure is understanding the degree to which tasks are divided into separate jobs or work specialization. The division of labor is helpful in creating the most efficient way to utilize employee skills, increase their skills and maximize their input.
Work specialization can cause greater economies, but in some cases it can cause diminishing returns due to repetition which can lead to boredom. Job enlargement can be effective in creating greater efficiencies than specialization.
Costs: Human costs when carried too far
Job enlargement as a solution
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8. Element: Departmentalisation
Basis by which jobs are grouped together so that
common tasks can be coordinated
Functional Departmentalization
A form of organization that groups a company’s activities
around essential functions eg: manufacturing, sales, finance
Product Departmentalization
Grouping departments around a firm’s products or services,
or each family of products or services; also referred to as a
“divisional” organization
Geographic (Territorial) Departmentalization
Separate departments are established for each of the
territories in which the enterprise does business
Departmentalization defines how jobs are grouped together. There are a number of options to choose from when grouping jobs; you could organize around function, product, location, process or customer. When jobs are grouped, departments are formed.
Customer Departmentalization
Self-contained departments are organized to serve the needs
of specific groups of customers
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9. Element: Chain of command
Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom Authority: positional rights Unity of Command principle: one boss Fewer organizations find this is relevant
The chain of command represents the line of authority present in decision making. Embedded in the chain of command is the inherent right of a manager to give orders and expect the orders to be followed. Unity of command is the idea that a subordinate should have only one superior to report to so that directions and the chain of command are clear.
As organizations change this concept is becoming less and less important.
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10. Element: Span of control
The number of employees a manager is expected to effectively and efficiently direct Determines the number of levels and managers an organization has Trend is toward wider spans of control Wider span depends on knowledgeable employees Affects speed of communication and decision making
Wider span allows for more efficiency because you need fewer managers. However, it can also limit the amount of time and direction a manager can give to their employees. A narrow span can allow for more direction but can add layers of management, increase the complexity of the vertical communication and encourage overly tight supervision, limiting employee autonomy.
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11. Element: centralisation Degree to which decision making is
concentrated at a single point in the
organization
Only includes formal authority:
positional rights
Highly centralized when top managers
make all the decisions
Decentralized when front line employees
and supervisors make decisions
Trend is toward increased
decentralization
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12. Element: formalisation Degree to which jobs within the organization
are standardized
Formal: people have minimum discretion over
what is to be done, when it is done, and how
When there is high formalization workers have very little control over how they do their work and they will be required to follow a number of rules and procedures. Lower formalization will tend to allow for different job behaviors to get the job done, giving workers more control over their work.
Informal: people have freedom to act as
necessary
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13. Team: Considering the Brighton case refer the six Elements to the case
In what way might these six
Elements have influenced
behaviour ? 15
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14. organisational designs
Common
organisational designs
Simple structure
Bureaucracy
Matrix Structure
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15. Simple structure
CEO
Low degree of departmentalization Wide spans of control Authority centralized in a single person Little formalization Difficult to maintain in anything other than small organizations
The first and most basic structure is the simple structure. This structure has a low degree of departmentalization, wide spans of control and centralized decision making with little formalization in job design.
This structure is difficult to utilize in anything other than small organizations.
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16. Bureaucracy
Highly routine operating tasks achieved through specialization
Formal rules and regulations
Centralised authority
Narrow spans of control
Tasks grouped by functional departments
Decision making follows the chain of command
CEO
DoN
COO
Fin
Another type of organizational design is bureaucracy. In a bureaucratic organization there will be a great deal of structure. The tasks will be completed through specialization, and they tend to be formalized through rules and regulations. Departments will be highly defined by function and authority is centralized. Decision making will follow a strict chain of command and there will be narrow spans of control. The bureaucratic organization will be one that is highly defined and very controlled.
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17. Matrix structure
Combines two forms of departmentalization: Functional Product Dual chain of command Advantages: Facilitates coordination and efficient allocation of specialists Disadvantages: Possible confusion, fosters power struggles, stress
The matrix structure is another common organizational design. This structure creates dual lines of authority and combines functional and product departments in a way to effectively meet organizational goals.
The key elements of the matrix structure is that it gains the interactions between the functional and product departments by coordinating complex and interdependent activities to help reach the goals set forth in an efficient manner opening up avenues for new ideas to achieve the company’s mission. The matrix structure also breaks down the unity-of-command concept as the lines of authority are blurred.
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18. With division of Labour… …We need coordination Mutual adjustment
Direct supervision
Standardisation of work processes
Standardisation of work outputs
Standardisation of skills
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19. Four forces that influence Structure
Strategy
Organization
Size
Environment
Influences
Structures differ for a number of reasons. The first is that structure is set up to facilitate the strategy of the organization. If you organization is focusing on innovation as a key value than they may be best served by an organic structure. Whereas, if they are looking at minimizing costs as their strategy they will find that a mechanistic structure will work better. Strategy should always dictate structure instead of structure dictating strategy.
Structures will also differ by organization size, the larger they get they tend to become more mechanistic. They will differ by how much technology is used, the more routine the activities the more mechanistic the structure should be. Structures will also differ based on the environment in which they exist. The more dynamic the environment the more organic the structure will need to be to facilitate quick decisions and fast turnaround.
Technology
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20. Keep in mind… As tasks become more complex and required
skills more diverse, more use of cross-functional
teams is required
Simple structures are easy to create but difficult
to grow
External boundaries can be reduced through
globalization, strategic alliances,
customer-organizational links, and telecommuting
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21. Structural relationships impact upon attitude and behaviour: Discuss
Structure constrains employee
behaviour:
Discuss 10

22. Organisational Structure Framework
Mintzberg’s
Organisational Structure Framework
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23. Mintzberg’s organisational structure framework
Organisations
Comprise:
Strategic apex
Middle line
Support staff
Technostructure
Operating core
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24. Simple structure Characterised by:
Boss at the apex: everyone else operational
Little formation of middle management
Direct Supervision by the owner
Applies in small organisations
Dependant on the skill of the owner/manager
Information Systems tend to be unplanned
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25. Machine bureaucracy Structure Characterised by:
The classic organisation structure
Enormously efficient
It runs according to standardised
Procedures
Can create tensions from the top
down, in terms of decision making
Centralised decision making and
information systems
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26. Machine bureaucracy Machine Bureaucracy Examples:
A traditional airline
A steel works
A government directorate
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27. Professional Bureaucracy Structure
Characterised by:
Is governed by plans and rules,
has a large operating core
Suited to complex but stable
Environment
Has rules but no plans
Staff are relatively autonomous
and powerful in decision
making sense
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28. Professional Bureaucracy
Examples:
University
Hospital
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29. adhocracy Characterised by: Little formalisation of behaviour
Job specialization based on
formal training
A tendency to group the
specialists in functional units
for housekeeping purposes but to deploy them in small, market-based project teams
A reliance on liaison devices to
encourage mutual adjustment, the key coordinating mechanism within and between these teams
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30. adhocracy A project based consulting or R&D Company Some highly
Examples:
A project based
consulting or R&D
Company
Some highly
innovative
companies or
agencies
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31. Divisional structure Characterised by:
A large organisation that requires multi-specialty
work undertaken by autonomous units, insular
divisions that can behave as small organisations in
themselves (i.e. subject to description by one of
Mintzberg’s Five)
The apex plays a large role, as do middle managers
Prone to miscommunication through the middle line
Tension often exists between head-quarters and
divisions, especially with respect to information
systems and their use
Each division will focus on a particular market
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32. Divisional structure A major corporation A regional health provider
Examples:
A major corporation
A regional health provider
Health systems
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33. Thinking of your organisations, which of these models most closely represents it.
Explain your answer. 10
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34. Four worlds in healthcare
Community
Board / media
Control
Managers
Cure
Doctors
Care
Nurses
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35. Four worlds in healthcare
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36. references Institute of Leadership
Robbins, S & Judge A (2012) Essentials of Organizational Behavior, London: Prentice Hall
Glouberman, S. & Mintzberg, H. (2001) Managing the Care of Health and the Cure of Disease – Part l: Differentiation. Health Care Management Review. 26(1) 56-69
Glouberman, S. & Mintzberg, H. (2001) Managing the Care of Health and the Cure of Disease – Part ll: Integration. Health Care Management Review. 26(1),70-84
Mintzberg, H. (1981), Organisation Design: fashion of Fit? Harvard Business Review (Jan-Feb)
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37. Are there any questions?
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