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Organizational behaviorTRANSCRIPT
ORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N S
W W W . P R E N H A L L . C O M / R O B B I N S
T E N T H E D I T I O N
© 2003 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook
© 2003 Prentice Hall Inc. All rights reserved. 15–2
AFTER STUDYING THIS CHAPTER,YOU SHOULD BE ABLE TO:
1. Identify the six key elements that define an organization’s structure.
2. Explain the characteristics of a bureaucracy.
3. Describe a matrix organization.
4. Explain the characteristics of a virtual organization.
5. Summarize why managers want to create boundaryless organizations.L
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© 2003 Prentice Hall Inc. All rights reserved. 15–3
AFTER STUDYING THIS CHAPTER,YOU SHOULD BE ABLE TO:
6. Contrast mechanistic and organic structural models.
7. List the factors that favor different organizational structures.
8. Explain the behavioral implications of different organizational designs.
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© 2003 Prentice Hall Inc. All rights reserved. 15–4
What Is Organizational Structure?What Is Organizational Structure?
Key Elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
Key Elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
© 2003 Prentice Hall Inc. All rights reserved. 15–5
What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d)
Division of labor:
• Makes efficient use of employee skills
• Increases employee skills through repetition
• Less between-job downtime increases productivity
• Specialized training is more efficient
• Allows use of specialized equipment
Division of labor:
• Makes efficient use of employee skills
• Increases employee skills through repetition
• Less between-job downtime increases productivity
• Specialized training is more efficient
• Allows use of specialized equipment
© 2003 Prentice Hall Inc. All rights reserved. 15–6
Key Design Questions and Answers for Designing the Proper Organization Structure
Key Design Questions and Answers for Designing the Proper Organization Structure
E X H I B I T 15-1
© 2003 Prentice Hall Inc. All rights reserved. 15–7
Economies and Diseconomies of Work Specialization
Economies and Diseconomies of Work Specialization
E X H I B I T 15-2
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What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d)
Grouping Activities By:
• Function
• Product
• Geography
• Process
• Customer
Grouping Activities By:
• Function
• Product
• Geography
• Process
• Customer
© 2003 Prentice Hall Inc. All rights reserved. 15–9
What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d)
© 2003 Prentice Hall Inc. All rights reserved. 15–10
What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d)
Narrow Span Drawbacks:
• Expense of additional layers of management.
• Increased complexity of vertical communication.
• Encouragement of overly tight supervision and discouragement of employee autonomy.
Narrow Span Drawbacks:
• Expense of additional layers of management.
• Increased complexity of vertical communication.
• Encouragement of overly tight supervision and discouragement of employee autonomy.
Concept:Concept:
Wider spans of Wider spans of management increase management increase organizational efficiency.organizational efficiency.
Concept:Concept:
Wider spans of Wider spans of management increase management increase organizational efficiency.organizational efficiency.
© 2003 Prentice Hall Inc. All rights reserved. 15–11
Contrasting Spans of ControlContrasting Spans of Control
E X H I B I T 15-3
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What Is Organizational Structure? (cont’d)What Is Organizational Structure? (cont’d)
© 2003 Prentice Hall Inc. All rights reserved. 15–13
Common Organization DesignsCommon Organization Designs
E X H I B I T 15-4
A Simple Structure:Jack Gold’s Men’s Store
A Simple Structure:Jack Gold’s Men’s Store
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Common Organization Designs (cont’d)Common Organization Designs (cont’d)
© 2003 Prentice Hall Inc. All rights reserved. 15–15
The BureaucracyThe Bureaucracy
Strengths– Functional
economies of scale
– Minimum duplication of personnel and equipment
– Enhanced communication
– Centralized decision making
Weaknesses– Subunit conflicts
with organizational goals
– Obsessive concern with rules and regulations
– Lack of employee discretion to deal with problems
© 2003 Prentice Hall Inc. All rights reserved. 15–16
Common Organization Designs (cont’d)Common Organization Designs (cont’d)
Key Elements:
+ Gains advantages of functional and product departmentalization while avoiding their weaknesses.
+ Facilitates coordination of complex and interdependent activities.
– Breaks down unity-of-command concept.
Key Elements:
+ Gains advantages of functional and product departmentalization while avoiding their weaknesses.
+ Facilitates coordination of complex and interdependent activities.
– Breaks down unity-of-command concept.
© 2003 Prentice Hall Inc. All rights reserved. 15–17
Matrix Structure (College of Business Administration)Matrix Structure (College of Business Administration)
E X H I B I T 15-5
(Dean)
(Director)
Employee
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New Design OptionsNew Design Options
Characteristics:
• Breaks down departmental barriers.
• Decentralizes decision making to the team level.
• Requires employees to be generalists as well as specialists.
• Creates a “flexible bureaucracy.”
Characteristics:
• Breaks down departmental barriers.
• Decentralizes decision making to the team level.
• Requires employees to be generalists as well as specialists.
• Creates a “flexible bureaucracy.”
© 2003 Prentice Hall Inc. All rights reserved. 15–19
New Design Options (cont’d)New Design Options (cont’d)
Concepts:
Provides maximum flexibility while concentrating on what the organization does best.
Disadvantage is reduced control over key parts of the business.
Concepts:
Provides maximum flexibility while concentrating on what the organization does best.
Disadvantage is reduced control over key parts of the business.
© 2003 Prentice Hall Inc. All rights reserved. 15–20
A Virtual OrganizationA Virtual Organization
E X H I B I T 15-7
© 2003 Prentice Hall Inc. All rights reserved. 15–21
New Design Options (cont’d)New Design Options (cont’d)
T-form Concepts:
Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries.
Breakdown external barriers to customers and suppliers.
T-form Concepts:
Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries.
Breakdown external barriers to customers and suppliers.
© 2003 Prentice Hall Inc. All rights reserved. 15–22
Why Do Structures Differ?Why Do Structures Differ?
© 2003 Prentice Hall Inc. All rights reserved. 15–23
Why Do Structures Differ?Why Do Structures Differ?
© 2003 Prentice Hall Inc. All rights reserved. 15–24
Mechanistic Versus Organic ModelsMechanistic Versus Organic Models
E X H I B I T 15-8
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Why Do Structures Differ? – StrategyWhy Do Structures Differ? – Strategy
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The Strategy-Structure RelationshipThe Strategy-Structure Relationship
E X H I B I T 15-9
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Why Do Structures Differ? – TechnologyWhy Do Structures Differ? – Technology
Characteristics of routineness (standardized or customized) in activities:
• Routine technologies are associated with tall, departmentalized structures and formalization in organizations.
• Routine technologies lead to centralization when formalization is low.
• Nonroutine technologies are associated with delegated decision authority.
Characteristics of routineness (standardized or customized) in activities:
• Routine technologies are associated with tall, departmentalized structures and formalization in organizations.
• Routine technologies lead to centralization when formalization is low.
• Nonroutine technologies are associated with delegated decision authority.
© 2003 Prentice Hall Inc. All rights reserved. 15–28
Why Do Structures Differ? – EnvironmentWhy Do Structures Differ? – Environment
Key Dimensions:
• Capacity: the degree to which an environment can support growth.
• Volatility: the degree of instability in the environment.
• Complexity: the degree of heterogeneity and concentration among environmental elements.
Key Dimensions:
• Capacity: the degree to which an environment can support growth.
• Volatility: the degree of instability in the environment.
• Complexity: the degree of heterogeneity and concentration among environmental elements.
© 2003 Prentice Hall Inc. All rights reserved. 15–29
The Three Dimensional Model of the Environment
The Three Dimensional Model of the Environment
E X H I B I T 15-10
Complexity
Volatility
Capacity
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Organizational Designs and Employee Behavior
Organizational Designs and Employee Behavior
Research Findings:
• Work specialization contributes to higher employee productivity, but it reduces job satisfaction.
• The benefits of specialization have decreased rapidly as employees seek more intrinsically rewarding jobs.
• The effect of span of control on employee performance is contingent upon individual differences and abilities, task structures, and other organizational factors.
• Participative decision making in decentralized organizations is positively related to job satisfaction.
Research Findings:
• Work specialization contributes to higher employee productivity, but it reduces job satisfaction.
• The benefits of specialization have decreased rapidly as employees seek more intrinsically rewarding jobs.
• The effect of span of control on employee performance is contingent upon individual differences and abilities, task structures, and other organizational factors.
• Participative decision making in decentralized organizations is positively related to job satisfaction.
© 2003 Prentice Hall Inc. All rights reserved. 15–31
Organization Structure: Its Determinants and Outcomes
Organization Structure: Its Determinants and Outcomes
E X H I B I T 15-11