1. 6 Organizational Structure 1.Concept of Organization
2.Principle of Org. Design
3. Structure
4. Trend & Issue of Org.

2. Designing Organizational Structure
Organizing: the process by which managers establish working relationships among employees to achieve goals.
*an designed Organizational Structure will tell us: what a formal system will be ,
a formal system of task n reporting relationships
Will show u how workers use resources.
*when design an organizational structure: managers make specific choices resulting in a given organizational structure
*Later we will together learn the given organizational structure,one by one .

3. Principle of Organizational Design
Vertical dimension
Unity of Command
Centralization & Decentralization
Authority & Responsibility
Span of Management/control
Horizontal dimension
Division of Labor
Departmentalization
When we want to design an org. structure ,we should obey these principle firstly,thereby从而 we can design a successful structure。
Vertical dimension 垂直
Unity of Command统一指挥
centralization & Decentralization集权与分权
Authority & Responsibility职权与职责
Span of Management/control管理跨度
Horizontal dimension水平
Division of Labor劳动分工
Departmentalization部门化

4. Principle-Unity of Command
The principle that a subordinate should have one n only one superior to whom he or she is directly responsible.
Su’perior

5. Embarrassing Situation
From this embarrassing situation we can see if we don’t obey the principle of Unity of Command, the problem will happen.

6. Authority & Responsibility
The rights inherent lie in a managerial position to give orders and expect them to be obeyed.
Responsibility:
An obligation to perform assigned activities.

7. Authority Line authority:
the authority that entitles a manager to direct the work of a subordinate.
Staff authority:
authority given to individuals who support ,assist ,and advise others who have line authority.
Chain of command :
the flow of authority from the top to the bottom of an organization.
*Staff authority is less powerful than the line authority.
*Along the line authority n the staff authority , We can see a chain of command in an org.

8. Executive Director
Assistant to the Executive Director
Director of Personnel
Director of Operation
Director of Purchasing
Other Directors
Unit 1 Manager
Unit 2 Manager
Line authority
Staff authority参谋
Personnel
Operation
Purchasing
Other

9. Theory of Authority Acceptance theory of authority:
The theory that authority comes from the willingness of subordinates to accept it.
The classical view:
The rights inherently lie in one’s formal organizational position, if an order is given , it would be obeyed.
1\These days the classical view can not be accept by most of people ,especially among the young.
2\According to the acceptance theory
--if the leader has the capability to lead the group to their goals,
--and the subordinates admire their leader, believe his ability,
--then the authority is right there.
--Otherwise the authority will not happen in deed.
Power:the capability to influence decisions

10. Responsibility Equating responsibility and authority
When managers delegate authority, responsibility must be given as well.
1 : One who has authority should has the equate responsibility at the same time.
Allocating authority without responsibility can create problems , and no one should be held responsibility for something.
2: But in fact when delegate authority , only authority could be given , the responsibility can not be delegate in deed.
Then how we make re.n au.equate? Enhance managerial control.

11. Centralization
Centralization :lower managers are not capable at making decisions.
Validity :
More stable environment.
Decision is significant.
Company is large.
Disadvantage:Face crisis or failure risk.
Relative 相对的
No org. is completely centralized or decentralized.
Minor-次要的
Disperse-分散
Say over背诵

12. Decentralization
Decentralization: lower managers are capable at making decisions.
Validity:
uncertain Environment .
Decision is minor
Company is geographically dispersed.
Centralization-Decentralization is a relative

13. Span of Control
The number of subordinates a manager can supervise efficiently and effectively

14. 管理跨度
概念：一个上司能有效指挥的下属个数 。
管理跨度的意义
管理跨度的现代观点
影响管理跨度的因素

15. 管理跨度的对比

16. 管理跨度的意义 管理跨度决定组织层次和管理人员的数目，进而决定了组织的工作效率． 组织层次与沟通效率： 人力成本与经济效率
预算中看到人员工资是一项最大的预算项目，（工资可分为管理人员工资部分和操作人员工资部分，）从产出上来看，管理人员的数量不会影响产量，同时管理人员的工资是其中比例最大的部分，如果管理人员能减少，在成本不变的情况下，生产效率定会提高。组织层次：层次多少决定组织交流速度和质量（传话游戏）——工作效率

17. 管理跨度的现代观点
赞成尽量扩大管理跨度→　有的拓宽到１０～２０个　→　形成扁平化的组织结构．
扩大管理跨度是否会影响管理效果？

18. 影响管理跨度的因素 下属的素质； 下属工作的相似性； 任务的复杂性； 下属工作地点的远近； 管理信息系统的先进程度； 组织文化的凝聚力；
管理风格
c要加强对管理者的培训，而员工原有素质基础是主要方面

19. Contrasting Spans of Control
Assuming Span of Assuming Span of 8 1 1 4 8 16 64 64
512
256
4096
1024
4096
Operators:4096
Managers: 585
Level: 5
Operators: 4096
Managers : level : 7

20. Departmentalization
The process of grouping individuals into separate units or departments to accomplish organization goals
Functional departmentalization
Product & Service departmentalization
Geographic Departmentalization
Market or Customer Departmentalization
Process departmentalization
Global structure
部门化

21. Functional departmentalization
Grouping activities by functions performed.

22. Functional Departmentalization
Executive Director
Director of Personnel
Director of Operation
Director of Purchasing
Other Directors
Unit 2 Manager
Unit 1 Manager
Personnel
Operation
Purchasing
Other

23. Product & Service departmentalization
divisions created according to the type of product or service.

24. Product & Service Structure
Figure 8.4a

25. Geographic Departmentalization
Geographic structure: divisions based on the area of a country or world served.

26. Geographic Structure

27. Market or Customer Departmentalization
Market structure: divisions based on the types of customers served.

28. Market or Customer Departmentalization
Figure 8.4c
Retail n wholesale

29. Process departmentalization
Grouping activities on the basis of product or customer flow.
Flow :服务过程

30. Process departmentalization

31. Global Structures
When managers find different problems or demands across the globe, global solutions are needed.
Global geographic structure: different divisions serve each world region.
Global product structure: Customers in different regions buy similar products so firms keep most functional work at home and set up a division to market product abroad.
For customer needs that vary between regions.

32. Structures
A division is a collection of functions working together to produce a product.
According the method of Departmentalization
Three factors for every org.
Complexity
Formalization
Centralization
Divisions create smaller, manageable parts of a firm.
Divisions develop a business-level strategy to compete.
A division has marketing, finance, and other functions.
Functional managers report to divisional managers who then report to corporate management.

33. Division of Structures
Mechanistic: A structure that is high in complexity , formalization, and centralization .
Organic: A structure that is low in complexity , formalization, and centralization.
Mechanistic:
Employees closely monitored and managed.
Very efficient in a stable environment.
Organic:
Much looser control than mechanistic.
Managers can react quickly to changing environment.

34. Contrast of Main Division
Mechanistic
Organic
*Collaboration (both vertical and horizontal)
*Adaptable duties
*Informal communication
*Decentralized decision authority
*Rigid hierarchical relationship
*Fixed duties
*Formalized communication
*Centralized decision authority
Their validity are lying in the environment situation.\strategy\technique\human resource

35. Factors Affecting Organizational Design
Figure 8.1
Environment
Determine design
or organizational
structure
Strategy
Technology
Human
Resources

36. Environment and Structure
Structure must be more flexible when environmental change is rapid.
Organic structure is a good choice in this case.
The quicker the environment changes, the more problems face managers. Usually need to decentralize authority..

37. Strategy and Structure
Strategy: Different strategies require the use of different structures.
战略类型
适应结构类型
简单结构
单一产品
有机式
纵向一体化
复杂的战略
多样化经营
机械式 *
创新战略
最求稳定和效率

38. Technology & Structure
Unit Production: The production of items in units or small batches.
Mass Production : automated machines make high volumes of standard products.
Process Production: totally mechanized systems of automatic machines.
Workers must watch for unexpected problems and react quickly. A flexible structure is needed here.----Organic
Workers perform repetitive tasks so a formal structure works well.----Mechanistic
Based on the skills of the workers who need a flexible structure.----Organic
Technology: The combination of skills, knowledge, tools, equipment, computers and machines used in the organization.
More complex technology makes it harder for managers to regulate the organization. Technology can be measured by:
Task Variety: new problems a manager encounters.
Task Analyzability: programmed solutions available to a manager to solve problems.
High task variety and low analyzability present many unique problems to managers.
Flexible structure works best in these conditions.
Low task variety and high analyzability allow managers to rely on established procedures.

39. Human Resources & Structure
Higher skilled workers who need to work in teams usually need a more flexible structure.
----Organic Structure.
Managers must take into account all four factors (environment, strategy, technology and human resources) when designing the structure of the organization.
Higher skilled workers often have professional norms
(CPA’s, physicians).

40. ?The Type of Structure Mechanistic : Organic: Hybrid structure
Functional structure
Divisional structure
Organic:
Simple structure
Matrix structure
Team-based structure
Network structure
Hybrid structure

41. Simple structure
An organizational design that is low in complexity and formalization but high in centralization

42. Simple structure Boss of The Supermarket Staff 1 Staff 2 Staff 3
Casher

43. Functional structure
Function: people working together with similar skills, tools or techniques to perform their jobs.
An organizational structure that groups similar or related occupational specialties

44. A Sample of Pier 1’s Functional Structure
Figure 8.3

45. Functional structure Advantage:
Workers can learn from others doing similar tasks.
Easy for managers to monitor and evaluate workers.
Disadvantage:
Hard for one department to communicate with others.
Managers can become preoccupied with their department and forget the firm

46. ?Divisional structure
An organization structure made up of autonomous self-contained units
Advantage :
Disadvantage:
Au’tonomous:自治的

47. Divisional structure
事业部制

48. ?Matrix Structure
Matrix structure: managers group people by function and product teams simultaneously.
Advantage:
Disadvantage:
Results in a complex network of reporting relationships.
Very flexible and can respond rapidly to change.
Each employee has two bosses which can cause problems.
Functional manager gives different directions than product manager and employee cannot satisfy both.

49. Matrix Structure Figure 8.7a Team Managers = two boss employee CEO
Func.
Managers
Sales
Design
Production
Product
team A
Team Managers
Product
team B
Product Team
Product
team C
= two boss employee

50. Team-based Structure Product Team Structure:
The members are permanently assigned to the team and empowered to bring a product to market.

51. Product Team Structure
Figure 8.7b
CEO
Func.
Managers
Sales
Design
Production
Manufacturing
= Product Team Manager
= Team member

52. ?Network Structure a whole series of strategic alliances.
Created between suppliers, manufacturers, and distributors.
Advantage:
Disadvantage:
Toyota and Honda use many such alliances.
Network structures allow firms to bring resources together in a boundary-less organization.

53. Network Structure

54. Hybrid Structures
Many large organizations have divisional structures where each manager can select the best structure for that particular division.
One division may use a functional structure, one geographic, and so on.
This ability to break a large organization into many smaller ones makes it much easier to manage.
Hybrid 混合型的

55. Trend & Issue of Org.
Coordinating Function :To ensure sufficient coordination between functions, managers delegate authority.
Tall & Flat org:
Tall structures have many levels of authority relative to the organization’s size.
Communication gets difficult and Communications can also become garbled .
More time being taken to implement decisions.
Flat structures have few levels but wide spans of control.
Results in quick communications but can lead to overworked managers.