1. Organization Behavior and Organization Structure

2. Organization Behavior
A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization effectiveness
Stephen P. Robbins & Timothy A. Judge

3. Organization Structure
The way in which job tasks are formally divided, grouped, and coordinated
Stephen P. Robbins & Timothy A. Judge

4. 6 elements of Organization’s Structure
Stephen P. Robbins & Timothy A. Judge

5. 1. Work Specialization
Describes the degree to which tasks in an organization are divided into separate jobs. The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.

6. 2. Departmentalization
The basis by which jobs in an organization are grouped together. For instance every organization has its own specific way of classifying and grouping work activities.

7. 2. Departmentalization 5 common forms of departmentalization:
Functional departmentalization
Product departmentalization
Geographical departmentalization
Process departmentalization
Customer departmentalization

8. Functional Departmentalization
Plant Manager
Manager
engineering
Manager Accounting
Manager manufacturing
Manager HR
Positive
Negative
Efficiencies from putting together similar specialties and people with common skills, knowledge and orientations
Poor communication across functional areas
coordination within functional area
Limited view of organizational goals
In- depth specialization

9. Product Departmentalization
Procter & Gamble
Tide
Pampers
Charmin
Pringles
Positive
Negative
Allows specialization in particular products and services
Duplication of function
Managers can become experts in their industry
Limited view of organizational goals
Closer to customers

10. Geographical Plant Manager Geographical Departmentalization
Vice President for Sales
Sales Director
Western Region
Southern Region
Sales Director Midwestern Region
Sales Director Eastern Region
Positive
Negative
More effective and efficient handling of specific regional issues that arise
Duplication of function
Serve needs of unique geographic markets better
Can feel isolated from other organizatonal areas

11. Process Departmentalization
State motor vehicle office
Motor vehicles division
Licensing department
Treasury department
Positive
Negative
More efficient flow of work activities
can only be used with certain types of products

12. Customer Departmentalization
Director of sales
Manager consumers account
Manager large corporation account
Manager software developers account
Manager small business account
Positive
Negative
Customers need and problems can be met by specialists
Duplication of functions
Limited view of organizational goals

13. 3. 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
2 important concept:
Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it
Unity of Command: The management principle that each person should report to only one manager

14. 4. Span of Control
The number of subordinates a manager can efficiently and effectively direct

15. 5. Centralization and Decentralization
Centralization: the degree to which decision making is concentrated at a single point in an organization
Decentralization: decision making is pushed down to the managers closest to the action

16. The degree to which jobs within an organization are standardized
6. Formalization
The degree to which jobs within an organization are standardized

17. Organizational Design
Robbins
Traditional
Simple Structure
Bureaucracy
Matrix
Modern
Team Structure
Virtual Organization
Boundaryless Organization

18. Simple Structure
Low degree of departmentalization, Wide span of control, High authority, and Low formalization.
The company usually small and “young”
Used by big company in crisis, for example IBM in 1993

19. Simple Structure

20. Simple Structure Positive Negative The structure is simple
Limitless decision making
Flexible, fast and
Insufficient if the company expands
Low cost in implementation
High risk in implementation

21. Bureaucracy Structure
Specialization on routine operational task
Formalized regulation, centralized authority, narrow span of control and decision making follow the chain of command
Applied on big and mature organization with active routine and high standarization, for example U.S Department of Education

22. Bureaucracy Structure

23. Bureaucracy Structure
Positive
Negative
Carry out standarized task efficiently
Can create conflict between sub-unit
Doesn’t require many employee training
Overly concern on rule, hence there is no initiative from the employees
Increasse communication in the organization
Focus on sub-unit’s objective

24. Matrix Structure
A combined structure of functional departmentalization and product departmentalization
Two chain of command, so each employee has two superior
Used by company that require fast response in changing environment, fast information processing, and dealing with financial and human resource constrain, for example : Bussiness Administration school

25. Matrix Structure

26. Matrix Structure Positive Negative
Simplifying the activity coordination in the company
Confusion in handing the report to either superior
Easy to communicate between employees
Competition between managers
Employee with specific skill are spread in the organization

27. Team Structure
Using teams as main force in coordinating each job activities
Desentralized decision making until team level
Require the employee to work in specialization and generalization
For Example; Food Market Inc.

28. Virtual Organization
Implenting Outsourcing for main functions and sentralization of the organization
Focusing on organization specialization
For Example: Apex Digital

29. Virtual Organization

30. Virtual Organization Positive Negative Flexible in the implementation
Lack of control in the organization’s sub-units

31. Boundaryless Organization
Chain of command is erased, has unlimited span of control, and changing department with empowered team
There are cross-hierarchy team, participative decision making, and 360 degree work valuation
Employees are driven to generalisazing rather than specialisazing
Organization remove the boundaries with external party
For Example : Oticon A/S

32. MCS & Organizational Structure
An effective execution of MCS is possible only when there is an efficient HR management, excellent work culture as well as an efficient organization culture -Subhash Chandra Das-
Organization structure is a principal component in MCS’s structure. Organizational structure is a tool to distribute authority needed in using organization’s resource to achieve organization’s objective. –Mulyadi-

33. Why do Structure Differ?
Mechanistic Model : A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization
Organic Model: A structure that is flat, uses cross- hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participate decision making
Major causes or determinants of an organization’s structure:
Strategy
Innovation
Cost Minimization
Imitation
Organization size
Technology
Environment