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Copyright © 2012 PearsonEducation, Inc. Publishing asPrentice Hall

Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-1

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!Describe si" #ey ele$ents in or%aniational

desi%n!Contrast $ehanisti and or%ani strutures!Discuss the ontin%eny 'ators that 'avor

either the $ehanisti $odel or the or%ani

$odel o' or%aniational desi%n!Describe traditional or%aniational desi%ns

Chapter 5: oundations of !rgani"ational #esign

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#esigning !rgani"ational$tructure! Organizing - arranging and structuring %or& to

acco'plish an organi"ation(s goals.

! Organizational Structure - the )or'alarrange'ent o) *obs %ithin an organi"ation.

!Organizational Design - a process in+ol+ingdecisions about si &ey ele'ents:

! -or& speciali"ation

! #epart'entali"ation

! Chain o) co''and

! $pan o) control

! Centrali"ation and decentrali"ation

! or'ali"ation

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Ehibit 101: Purposes o)!rgani"ing

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!rgani"ational $tructure

! -or& $peciali"ation ( /he degree to %hich tas&s in the

organi"ation are di+ided into separate

*obs %ith each step co'pleted by adierent person.

( !+erspeciali"ation can result in hu'andisecono'ies such as boredo', )atigue,

stress, poor uality, increasedabsenteeis', and higher turno+er.

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#isecono'ies o) -or&

$peciali"ation

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/ypes o) ob #esign

! ob si'pli3cation 4 rearranging the duties andtas& so it %ill be unco'plicated and easy tohandle.

! ob rotation 4 a practice %here *ob is changed

syste'atically %ithin a ti'e duration in aseuence o) *ob o%.

! ob enlarge'ent 4 %iden the scope and nu'bero) tas& and indi+idual to carry out a speci3ed *ob.

! ob enrich'ent 4 increase the nu'ber o) tas& andresponsibility to enhance the capability,'oti+ation and per)or'ance o) an e'ployee.

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#epart'entali"ation by /ype! Functional

( 6rouping *obs by)unctions per)or'ed

! Product ( 6rouping *obs by

product line

! Geographical

( 6rouping *obs on thebasis o) territory orgeography

! Process

( 6rouping *obs onthe basis o) product

or custo'er o%! Customer

( 6rouping *obs bytype o) custo'er

and needs

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!rgani"ational $tructure7cont.8! Chain of Command - the

continuous line o) authority thatetends )ro' upper le+els o) an

organi"ation to the lo%est le+els o)the organi"ation9clari3es %horeports to %ho'.

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!rgani"ational $tructure7cont.8! Authority - the rights inherent in a

'anagerial position to tell people %hatto do and to epect the' to do it.

! Responsibility the obligation orepectation to per)or'.

! nity of Command the concept that

a person should ha+e one boss andshould report only to that person.

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Ehibit 10: /he i+e Co''onor's o) #epart'entali"ation

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or's o) #epart'entali"ation

7cont.8

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or's o) #epart'entali"ation

7cont.8

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!ther !rgani"ational$tructures! /ea';ased $tructure! ;oundaryless !rgani"ation

! ery eible and can respond rapidly tochange.

! Each e'ployee has t%o bosses %hich cancause proble's.

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Copyright © 2012 PearsonEducation, Inc. Publishing as

Prentice HallManagement , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-16

Ehibit 10?: Chain o) Co''andand @ine Authority

hibi 0 i $

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Ehibit 105: @ine +s. $taAuthority

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$pan o) Control

! Span of Control - the nu'ber o)e'ployees %ho can be eecti+ely andeBciently super+ised by a 'anager.

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-idth o) span is aected by:

! $&ills and abilities o) the 'anager! E'ployee characteristics

! Characteristics o) the %or& being done

! $i'ilarity o) tas&s

! Co'pleity o) tas&s

! Physical proi'ity o) subordinates

! $tandardi"ation o) tas&s

!$ophistication o) the organi"ation(sin)or'ation syste'

! $trength o) the organi"ation(s culture

! Pre)erred style o) the 'anager

E hibi 10 C i $ )

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Ehibit 10: Contrasting $pans o)Control

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Centrali"ation

! Centralization - the degree to%hich decision 'a&ing isconcentrated at upper le+els in the

organi"ation.! /his is co''on in organi"ations in %hich top

'anagers 'a&e all the decisions and lo%erle+el e'ployees si'ply carry out those

orders.

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#ecentrali"ation

! Decentralization - %hen anorgani"ation relegates decision'a&ing to 'anagers %ho are closest

to the action.! E'ployee E'po%er'ent

( Increasing the decision'a&ing authority

7po%er8 o) e'ployees

E hibit 10 D C t li ti

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Ehibit 10D: Centrali"ation or#ecentrali"ation

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or'ali"ation

! Formalization the degree to %hich *obs %ithin the organi"ation arestandardi"ed and the etent to %hich

e'ployee beha+ior is guided by rulesand procedures.

( Highly )or'ali"ed *obs oer littlediscretion o+er %hat is to be done.

( @o% )or'ali"ation 'eans )e%erconstraints on ho% e'ployees do their%or&.

E hibit 10 < h i ti >

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Ehibit 10: ersus!rganic !rgani"ations

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Contingency actors

! $tructural decisions are inuencedby:

( !+erall strategy o) the organi"ation

( $i"e o) the organi"ation ( /echnology use e'ployed by the

organi"ation

( #egree o) en+iron'ental uncertainty

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Contingency actors 7cont.8

! $trategy ra'e%or&s: ( Inno+ation

! Pursuing co'petiti+e ad+antage through'eaning)ul and uniue inno+ations )a+orsan organic structuring

( Cost 'ini'i"ation

! ocusing on tightly controlling costs reuires

a 'echanistic structure )or the organi"ation

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Contingency actors 7cont.8

! $trategy and $tructure ( Achie+e'ent o) strategic goals is )acilitated

by changes in organi"ational structure thatacco''odate and support change.

! $i"e and $tructure

( As an organi"ation gro%s larger, its structure

tends to change )ro' organic to 'echanistic%ith increased speciali"ation,depart'entali"ation, centrali"ation, andrulesFregulations.

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on

/echnology and $tructure

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/raditional #esigns

! $i'ple structure! @o% depart'entali"ation, %ide spans o) control,

centrali"ed authority, little )or'ali"ation

! unctional structure! #epart'entali"ation by )unction

! !perations, 3nance, 'ar&eting, hu'an resources,and product research and de+elop'ent

! #i+isional structure! Co'posed o) separate business units or di+isions

%ith li'ited autono'y under the coordination andcontrol o) the parent corporation

Ehibit 10 10: /raditional

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Ehibit 1010: /raditional!rgani"ational #esigns

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/er's to Kno%

! organi"ing! organi"ational structure! organi"ational chart! organi"ational design! %or& speciali"ation

! depart'entali"ation! cross)unctional tea's! chain o) co''and! authority! responsibility! unity o) co''and

! span o) control! centrali"ation! decentrali"ation! e'ployee e'po%er'ent! )or'ali"ation

! 'echanistic organi"ation! organic organi"ation! unit production! 'ass production! process production

! si'ple structure! )unctional structure! di+isional structure! tea' structure! 'atri structure! pro*ect structure! boundaryless organi"ation! +irtual organi"ation! net%or& organi"ation! learning organi"ation

20151021111015unit 5 organising

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