1. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4e Nelson/Quick ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 15 Organizational Design and Structure

2. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes  Define differentiation and integration as organizational design processes  Discuss the basic design dimensions managers must consider in structuring an organization  Describe five structural configurations for organizations  Describe four contextual variables that influence organizational structure 2

3. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes  Explain the forces reshaping organizations  Identify and describe emerging organizational structures  Identify factors that can adversely affect organizational structure 3

4. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Design The process of constructing and adjusting an organization’s structure to achieve its business strategy and goals 4

5. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure The linking of departments and jobs within an organization 5

6. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Organizational Design Processes Differentiation: The process of deciding how to divide the work in an organization  Dimensions of differentiation  Manager’s goal orientation  Time orientation  Interpersonal orientation  Formality of structure 6

7. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Integration  The process of coordinating the different parts of an organization  Supports dynamic equilibrium, in which all the parts of an organization are interrelated and balanced 7

8. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Integration Vertical integration Hierarchical referral Rules and procedures Plans and schedules Positions added to the organization structure Management information systems Horizontal Integration Liaison roles Task forces Integrator positions Teams ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

9. Table 15.1 - Five Structural Configurations of Organization ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

10. Figure 15.2- Five Basic Parts of an Organization ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10

11. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Contextual Variables  A set of characteristics that influences the organization’s design processes  Size  Technology  Strategy and Goals  Environment 11

12. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Relationships Among Organizational Design Elements Context of the organization Influences how managers perceive structural needs Structural Dimensions Which characterize the organizational processes Differentiation and Integration Which influence how well the structure meets its Purposes Which influence how well the structure fits the Context of the organization ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

13. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Forces Reshaping Organizations  Organizational life cycles  Globalization  Changes in Information-Processing Technologies  Demands on Organizational Processes 13

14. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Emerging Organizational Structures  Network organizations – Web-like structures that contract some or all operations to other organizations, then coordinate activities  Virtual organizations – Temporary networks of organizations consisting of independent enterprises  Circle organizations – Open system, organic structure for customer responsiveness 14

15. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Symptoms of Structural Weakness Delay in decision making Poor quality decision making Lack of innovative response to changing environment High level of conflict 15