managing organizational structure and culture chapter ten
TRANSCRIPT
Learning Objectives
1. Identify the factors that influence managers’ choice of an organizational structure.
2. Explain how managers group tasks into jobs that are motivating and satisfying for employees.
3. Describe the types of organizational structures managers can design, and explain why they choose one structure over another.
4. Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms
5. List the four sources of organizational culture, and explain why and how a company’s culture can lead to competitive advantage.
10-2
Organizational Structure
Organizational Architecture└ The organizational structure, control systems,
culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used.
10-3
Designing Organizational Structure
Organizing└ The process by which managers establish working
relationships among employees to achieve goals.
10-4
Designing Organizational Structure
Organizational Structure└ formal system of task
and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals.
10-5
Designing Organizational Structure
Organizational design└ The process by which managers create a specific
type of organizational structure and culture so that a company can operate in the most efficient and effective way
10-7
Designing Organizational Structure
The way an organization’s structure works depends on the choices managers make about:
1.How to group tasks into individual jobs2.How to group jobs into functions and divisions3.How to allocate authority and coordinate
functions and divisions
10-8
Grouping Tasks into Jobs: Job Design
Job Design└ The process by which managers decide how to
divide tasks into specific jobs.└ The appropriate division of labor results in an
effective and efficient workforce.
10-9
Job Design
Job Simplification└ The process of reducing the tasks each worker
performs. Job Enlargement
└ Increasing the number of different tasks in a given job by changing the division of labor
Job Enrichment└ Increasing the degree of responsibility a worker has
over a job
10-10
Job Enrichment
1. Empowering workers to experiment to find new or better ways of doing the job
2. Encouraging workers to develop new skills3. Allowing workers to decide how to do the
work4. Allowing workers to monitor and measure
their own performance
10-11
Grouping Jobs into Functions
Functional Structure└ An organizational
structure composed of all the departments that an organization requires to produce its goods or services.
10-13
Functional Structure
Advantages└ Encourages learning from others doing similar
jobs.└ Easy for managers to monitor and evaluate
workers.└ Allows managers to create the set of functions
they need in order to scan and monitor the competitive environment
10-14
Example – A.C. Moore Arts & Crafts
A.C. Moore is organized with a functional structure
Examples of divisions are Marketing & Merchandising, Stores & Loss Prevention, Store Operations, Merchandise Administration, Real Estate, and Legal
10-15
Functional Structure
Disadvantages└ Difficult for departments to communicate with
others.└ Preoccupation with own department and losing
sight of organizational goals.
10-16
Divisional Structures
Divisional Structure└ An organizational structure composed of separate
business units within which are the functions that work together to produce a specific product for a specific customer.
└ Product, market, geographic
10-17
Types of Divisional Structures
Product Structure└ Managers place each distinct product line or
business in its own self-contained division└ Divisional managers have the responsibility for
devising an appropriate business-level strategy to allow the division to compete effectively in its industry
10-19
Product Structure
Allows functional managers to specialize in one product area
Division managers become experts in their area
Removes need for direct supervision of division by corporate managers
Divisional management improves the use of resources
10-20
Types of Divisional Structures
Geographic Structure└ Divisions are broken down by geographic location
Global geographic structure└ Managers locate different divisions in each of the
world regions where the organization operates.└ Generally, occurs when managers are
pursuing a multi-domestic strategy
10-21
Types of Divisional Structures
Market Structure└ Groups divisions according to the particular kinds
of customers they serve└ Allows managers to be responsive to the needs of
their customers and act flexibly in making decisions in response to customers’ changing needs
10-22
Matrix Design Structure
Matrix Structure└ An organizational structure that simultaneously
groups people and resources by function and product.
└ The structure is very flexible and can respond rapidly to the need for change.
└ Each employee has two bosses
10-23
Product Team Design Structure
Product Team Structure└ Does away with dual reporting relationships and
two-boss managers└ Functional employees are permanently assigned
to a cross-functional team that is empowered to bring a new or redesigned product to work
10-25
Product Team Structure
Cross-functional team └ A group of managers brought together from
different departments to perform organizational tasks.
10-26
Allocating Authority
Authority└ power to hold people accountable for their
actions and to make decisions concerning the use of organizational resources.
10-28
Allocating Authority
Line Manager└ Someone in the direct
line or chain of command who has formal authority over people and resources
Staff Manager└ Managers who are
functional-area specialists that give advice to line managers.
10-29
Tall and Flat Organizations
Tall structures have many levels of authority and narrow spans of control.└ As hierarchy levels increase, communication gets
difficult creating delays in the time being taken to implement decisions.
└ Communications can also become distorted as it is repeated through the firm.
└ Can become expensive
10-30
Tall and Flat Organizations
Flat structures have fewer levels and wide spans of control.└ Structure results in quick communications but can
lead to overworked managers.
10-32Figure 10.9
Centralization and Decentralization of Authority
Decentralizing authority └ giving lower-level managers and non-managerial
employees the right to make important decisions about how to use organizational resources
10-33
Employment Relationship
Human resource policies:└ Can influence how hard employees will work to
achieve the organization’s goals, └ How attached they will be to it └ Whether or not they will buy into its values and
norms
10-36
Organizational Structure
In a centralized organization:└ people have little autonomy └ norms that focus on being cautious, obeying
authority, and respecting traditions emerge└ predictability and stability are desired goals
10-37
Organizational Structure
In a flat, decentralized structure: └ people have more freedom to choose and control
their own activities└ norms that focus on being creative and
courageous and taking risks appear └ gives rise to a culture in which innovation and
flexibility are desired goals.
10-38
Strong, Adaptive Cultures Versus Weak, Inert Cultures
Adaptive cultures └ values and norms help
an organization to build momentum and to grow and change as needed to achieve its goals and be effective
Inert cultures └ Those that lead to
values and norms that fail to motivate or inspire employees
└ Lead to stagnation and often failure over time
10-39
Video Case: Making Changes in New Orleans’ Most Troubled Schools
How would you rate teaching according to the five characteristics that determine how motivating a job is?
Does establishing organizational culture in a school present any different challenges than establishing culture in other types of organizations?
10-40