learning organizations
DESCRIPTION
A informative and exciting look at the basic organizational design of businessesTRANSCRIPT
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Group OneBASIC ORGANIZATION DESIGNS
V
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CHAPTER’S OVERVIEW
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• Foundations of organizational structure and its key
components
• What determines the type of organizational structure/its
contingencies
• Application of Organization Structures
• Learning organization- the mind-set and shared values
within the organization
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Companies’ Overview
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Foundations of
Organization Structure
and Its Key Components
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K
(What you know?)
W(What you want to know)
Or (Should want to know)
L(What you’ve leant)
1. The SIX Elements of Organizational
Structure
2. The Advantages and Disadvantages of Work
Specialization
3. Contrast Authority and Power
4. Five Ways Management can Departmentalize
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Organizational Design
The SIX Elements of Organizational Structure
LG1
The process in which managers develop or change their organization’s structure
Organisational structure- A formal system of working relationships that both separates tasks and integrates tasks
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The SIX Elements of Organizational Structure
LG1
1. Specialization/Division of Labour
2. Chain of Command
3. Span of Control
4. Authority and Responsibility
5. Centralization versus Decentralization
6. Departmentalization
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Specialization
The process of identifying a particular tasks and assigning them to individuals or work groups who have been trained to do them/best suited
for them
Candidate Service Team
Client Service Team
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The SIX Elements of Organizational Structure
LG1
1. Specialization/Division of Labour
2. Chain of Command
3. Span of Control
4. Authority and Responsibility
5. Centralization versus Decentralization
6. Departmentalization
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Chain of command
The continuous line of authority that extends from the highest levels in an organization to the lowest level and clarifies who reports
to whom
Unity of Command
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The SIX Elements of Organizational Structure
LG1
1. Specialization/Division of Labour
2. Chain of Command
3. Span of Control
4. Authority and Responsibility
5. Centralization versus Decentralization
6. Departmentalization
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The number of subordinates a manager can direct efficiently and effectively
Span of Control
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CHIEF EXECUTIVE OFFICER
Lara Quentrall-Thomas
CANDIDATE SERVICE TEAM
MANAGER
Kevin Mc Clean
Sparkle Bain
Abeke Forde
SYSTEM ADMINISTRATION
Stuart Patrick
FINANCE DIRECTOR
Melissa Shim
Pamela Pactrick
Patricia del Pino
CLIENT SERVICES TEAM
Astrid Barnett
Tamara D' Andrade
Ainka Primus
OPERATIONS DIRECTOR
Karlene Hassanali
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The SIX Elements of Organizational Structure
LG1
1. Specialization/Division of Labour
2. Chain of Command
3. Span of Control
4. Authority and Responsibility
5. Centralization versus Decentralization
6. Departmentalization
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Authority and Responsibility
The rights inherent in the managerial position to give orders and expect them to be obeyed
Or
The right to decide and to act
Spiderman: With great power comes………Responsibility is the obligation to perform assigned activities
Power vs. Authority
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CHAIRMAN
MANAGING DIRECTOR
GENERAL MANAGER
MANUFACTURING
MANUFACTURING DIRECTOR
LABELS-SALES
EXECUTIVE DIRECTOR OF SALES
SALES EXECUTIVE
ACCOUNTS EXECUTIVE
LABEL-CUSTOMER SERVICE
CUSTOMER SERVICE REPRESENTATIVE
ADMINISTRATIVE ASSISTANT
BRANDING
BRANDING DIRECTOR
ACCOUNTS EXECUTIVE
SALES DIRECTOR- WINE AND SPIRITS
MACHINERY
MACHINERY DIRECTOR
TECHINICAL SERVICE DIRECTORR
HUMAN RESOURCE
HUMAN RESOURCE DIRECTOR
Line authority
Staff authority
Line authority
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CHAIRMAN
MANAGING DIRECTOR
GENERAL MANAGER
MANUFACTURING
MANUFACTURING DIRECTOR
LABELS-SALES
EXECUTIVE DIRECTOR OF SALES
SALES EXECUTIVE
ACCOUNTS EXECUTIVE
LABEL-CUSTOMER SERVICE
CUSTOMER SERVICE REPRESENTATIVE
ADMINISTRATIVE ASSISTANT
BRANDING
BRANDING DIRECTOR
ACCOUNTS EXECUTIVE
SALES DIRECTOR- WINE AND SPIRITS
MACHINERY
MACHINERY DIRECTOR
TECHINICAL SERVICE DIRECTORR
HUMAN RESOURCE
HUMAN RESOURCE DIRECTOR
Line authority
Staff authority
Line authority
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Types of Power
Coercive Reward Legitimate Expert Referent
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The SIX Elements of Organizational Structure
LG1
1. Specialization/Division of Labour
2. Chain of Command
3. Span of Control
4. Authority and Responsibility
5. Centralization versus Decentralization
6. Departmentalization
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Centralization versus Decentralization
A management approach that is characterised by authority concentrated at the top of an organization or department
A management approach that is characterized by a high degree of authority being delegated throughout the organization to middle
and lower level managers
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Power
Centralization
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TOP MANAGER
SALES MANAGER
BRANDSMANAGER
LABELLING MANAGER
Contemporary Management Approach
DECENTRALIZATION
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CHIEF EXECUTIVE OFFICER
Lara Quentrall-Thomas
CANDIDATE SERVICE TEAM
MANAGER
Kevin Mc Clean
Sparkle Bain
Abeke Forde
SYSTEM ADMINISTRATION
Stuart Patrick
FINANCE DIRECTOR
Melissa Shim
Pamela Pactrick
Patricia del Pino
CLIENT SERVICES TEAM
Astrid Barnett
Tamara D' Andrade
Ainka Primus
OPERATIONS DIRECTOR
Karlene Hassanali
?
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CONSIDER ADVANTAGES
COSTLINESS OF DECISION FREES UP MANAGERS TO PLAN AND STRATEGIZE
CORPORATE CULTURE DEVELOPS LOWER LEVEL MANAGERS’ CONCEPTUAL SKILLS
AVAILABILTIY OF MANAGERS DECISION CAN BE MADE FASTER (EMPLOYEES CLOSER)
HEALTHY, ACHIEVEMENT-ORIENTED CULTURE IS FOSTERED/SELF-ESTEEM
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The SIX Elements of Organizational Structure
LG1
1. Specialization/Division of Labour
2. Chain of Command
3. Span of Control
4. Authority and Responsibility
5. Centralization versus Decentralization
6. Departmentalization
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DEPARTMENTALIZATION THE BUILDING BLOCK OF THE ORGANIZATION
The subdividing of work and assigning it to specialized groups within an organization
FORMS OF DEPARTMENTALIZATION
Functional- grouped according to their expertise and resources they draw on/function performed
Product- grouped by products produced
Customer-grouped by activities or needs of common customers
Geographic/Place-grouped according to location/territories served
Process-grouped according to work/customer flow
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CHIEF EXECUTIVE OFFICER
Lara Quentrall-Thomas
CANDIDATE SERVICE TEAM
MANAGER
Kevin Mc Clean
Sparkle Bain
Abeke Forde
SYSTEM ADMINISTRATION
Stuart Patrick
FINANCE DIRECTOR
Melissa Shim
Pamela Pactrick
Patricia del Pino
CLIENT SERVICES TEAM
Astrid Barnett
Tamara D' Andrade
Ainka Primus
OPERATIONS DIRECTOR
Karlene Hassanali
DEPARTMENTALIZATION BY
FUNCTION
CUSTOMERCUSTOMER
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CHAIRMAN
MANAGING DIRECTOR
GENERAL MANAGER
MANUFACTURING
MANUFACTURING DIRECTOR
LABELS-SALES
EXECUTIVE DIRECTOR OF SALES
SALES EXECUTIVE
ACCOUNTS EXECUTIVE
LABEL-CUSTOMER SERVICE
CUSTOMER SERVICE REPRESENTATIVE
ADMINISTRATIVE ASSISTANT
BRANDING
BRANDING DIRECTOR
ACCOUNTS EXECUTIVE
SALES DIRECTOR- WINE AND SPIRITS
MACHINERY
MACHINERY DIRECTOR
TECHINICAL SERVICE DIRECTORR
HUMAN RESOURCE
HUMAN RESOURCE DIRECTOR
PRODUCTPROCESSES
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The SIX Elements of Organizational Structure
LG1
1. Specialization/Division of Labour
2. Chain of Command
3. Span of Control
4. Authority and Responsibility
5. Centralization versus Decentralization
6. Departmentalization
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CHIEF EXECUTIVE OFFICER
Lara Quentrall-Thomas
CANDIDATE SERVICE TEAM
MANAGER
Kevin Mc Clean
Sparkle Bain
Abeke Forde
SYSTEM ADMINISTRATION
Stuart Patrick
FINANCE DIRECTOR
Melissa Shim
Pamela Pactrick
Patricia del Pino
CLIENT SERVICES TEAM
Astrid Barnett
Tamara D' Andrade
Ainka Primus
OPERATIONS DIRECTOR
Karlene Hassanali
RECAP/SUMMARIZE
Specialization Chain of CommandSpan of Control Authority & ResponsibilityCentralization versus Decentralization
Departmentalization
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What determines the type of organizational
structure/its contingencies?
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K
(What you know?)
W(What you want to know)
Or (Should want to know)
L(What you’ve leant)
1. The SIX Elements of Organizational
Structure 5. Mechanistic Vs. Organic Organizations2. The Advantages and
Disadvantages of Work Specialization
3. Contrast Authority and Power
6. Effects Of Strategy, Size, Technology, And
Environment On Organization Structures
4. Five Ways Management can Departmentalize
7. Divisional Vs. Functional Structures
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Contrast mechanistic and organic organizations
Mechanistic organisation is a structure that Is high in specialization, formulation
and centralizationOrganic organisation is a structure that is
low in specialization, formulation and centralization.
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Mechanistic
It is RIGID - close supervision
Bureaucratic – authority is centralized
Most appropriate for Stable Environment
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Organic
Fluid and flexible- tasks and roles are left ambiguous to encourage innovation and quick
response
Authority is decentralized
Most appropriate for unstable environments
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VS
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The effect of strategy, size, technology, and environment on the organization structures
• As strategies move from single product, to vertical integration, to product diversification,
structure must move from organic to mechanistic.
• As size increases, so to do specialization, formalization, and horizontal and vertical
differentiation. Once an organization has 2000 or more employees its fairly mechanistic.
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Divisional VS. Functional Structures
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Functional Structure takes advantage of specialization and provides economies of scale by allowing people
with common skills to work together.
Functions are simply groups based on the expertise of individuals
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CHIEF EXECUTIVE OFFICER
Lara Quentrall-Thomas
CANDIDATE SERVICE TEAM
MANAGER
Kevin Mc Clean
Sparkle Bain
Abeke Forde
SYSTEM ADMINISTRATION
Stuart Patrick
FINANCE DIRECTOR
Melissa Shim
Pamela Pactrick
Patricia del Pino
CLIENT SERVICES TEAM
Astrid Barnett
Tamara D' Andrade
Ainka Primus
OPERATIONS DIRECTOR
Karlene Hassanali
FUNCTIONAL FUNCTIONAL
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Structure is composed of autonomous units or divisions, with managers having full responsibility for a product or service
Divisional
Divisional structures are simply separate business units based on products, location or processes, within which still
contains functional structures
CEO
WASHING MACHINE DIVISION
MARKETING FINANCE OPERATIONS
LIGHTING DIVISION
MARKETING FINANCE OPERATIONS
TELEVISION AND STEREO DIVISION
MARKETING FINANCE OPERATIONS
DIVISIONS
FUNCTIONS
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K
(What you know?)
W(What you want to know)
Or (Should want to know)
L(What you’ve leant)
5. Mechanistic Vs. Organic Organizations 8. Strengths of the
Matrix Structure
6. Effects Of Strategy, Size, Technology, And
Environment On Organization Structures
9. Boundaryless Organization and its
Contributing Elements
7. Divisional Vs. Functional Structures
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MATRIX STRUCTURESimultaneously groups people and resources
based on functions and product.
Function
Product
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Boundaryless organization and what elements have contributed to its development
• An organization where members are linked by computers, fax, computer aided design
systems and video teleconferencing and who rarely see each other face to face.
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K
(What you know?)
W(What you want to know)
Or (Should want to know)
L(What you’ve leant)
8. Strengths of the Matrix Structure 10. Learning
Organization
9. “Boundaryless” Organization and its
Contributing Elements
11. Organizational
Culture
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LEARNING ORGANIZATIONS
What is a learning organization?
This is an organization that has developed the
capacity to continuously adapt and change
because all members take an active role in
identifying and resolving work-related issues.
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TYPES OF ORGANIZATIONAL LEARNING
1. Single-loop learning is localized learning within departments or sub units of the organization but may have few or if any
implications for the entire organization and policies and rules remain unchanged.
2. Double-loop learning occurs when a
discovery or insight causes not only localized change but a general revision in
corporate policy or strategy that takes into account this new insight.
3. Triple-loop learning goes one step further by
causing management to rethink the entire business paradigm and make organizational
changes based on the new insight.
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Characteristics of a Learning Organization
ORGANIZATIONAL DESIGN
• Boundaryless• Teams
• Empowerment
ORGANIZATIONAL CULTURE
• Strong Mutual Relationships• Sense Of Community
• Caring• Trust
INFORMATION SHARING
• Open• Timely
• Accurate
LEADERSHIP
• Shared Vision• Collaboration
LEARNING ORGANIZATION
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ORGANIZATION CULTURE
What is an organizational culture?
An organization culture is a system of shared meaning within an organization that determines, to a large
degree, how employees act or in other words, it gives members of an organization meaning and suggests
rules for how to behave and deal with problems within the organization.
It is also called corporate culture and it is the firm’s
shared values, beliefs, traditions, philosophies, rules and heroes.
The organizational culture may be expressed formally through codes of ethics, memos, manuals and
ceremonies but it is more often expressed informally through dress codes, work habits, extracurricular
activities and stories.
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How Can Cultures Be Assessed?
Ten (10) Characteristics Of Organizational Culture
Member Identity
ControlPeople Focus
Group Emphasis
Unit Integration
Risk Tolerance
Reward Criteria
Conflict Tolerance
Means-end Orientation
Open-system Focus
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Characteristics of Organizational Culture
1. Member identity
The degree to which employees identify with
the organization as a whole rather than with their type of job or field of professional expertise
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Characteristics of Organizational Culture
2. Group emphasis
The degree to which work activities are organized around
groups rather than individuals
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Characteristics of Organizational Culture
3. People focus
The degree to which management
decisions take into consideration the
effects of outcomes on people within the
organization
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Characteristics of Organizational Culture
4. Unit integration
The degree to which units in the organization are encouraged to operate
in a coordinated or inter-dependent manner
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Characteristics of Organizational Culture
5. Control
The degree to which rules, regulations and direct supervisions are
used to oversee and control employees
behavior
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Characteristics of Organizational Culture
6. Risk tolerance
The degree to which employees are
encouraged to be aggressive, innovative
and risk seeking
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Characteristics of Organizational Culture
7. Reward criteria
The degree to which rewards such as salary increases
and promotion are allocated on employees performance criteria in
contrast to seniority, favoritism or other non-
performance factors
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Characteristics of Organizational Culture
8. Conflict Tolerance
The Degree To Which Employees Are
Encouraged To Air Conflicts And Criticisms
Openly
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Characteristics of Organizational Culture
9. Means-end orientation
The degree to which management focuses on
results of outcomes rather than on the
techniques and processes used to achieve those
outcomes
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Characteristics of Organizational Culture
10. Open-system focus
The degree to which the organization monitors
and responds to changes in the external environment
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Thank you !!!!