organizing for action chapter 6 june 13, 2012. learning objectives lo 1 lo 1 define the...
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Organizing for Action
Chapter 6June 13, 2012
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Learning Objectives
LO 1 Define the characteristics of organization structure: organic or mechanistic, differentiation, and integration.
LO 2 Summarize how authority operates and who generally holds top authority in a company.
LO 3 Discuss how span of control affects structure and managerial effectiveness.
LO 4 Explain how to delegate effectively.
6-2
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Learning Objectives (cont.)
LO5 Distinguish between centralized and decentralized organizations.
LO6 Define basic types of organization structures, and summarize their strengths.
LO7 Describe important mechanisms used to coordinate work.
LO8 Discuss how organizations can improve their agility through their strategy, commitment to customers, and use of technology.
6-3
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Organizing
• Definition– The deployment of organizational resources to achieve
strategic goals– The process by which managers establish the structure
of working relationships among employees to achieve goals
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Organization Structure
• The set of formal tasks assigned to individuals and departments
• Formal reporting relationships• Mechanistic (Bureaucratic/Hierarchical) to
Organic (Learning/Flat/Horizontal)
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Factors Influencing Structure
• Organizational environment• Strategy• Technology• Human resources
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Organizational chart
• Schematic representation of these arrangements and relationships – The reporting structure and division of labor in an
organization
6-7
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Conventional Organization Chart
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Differentiation
• Definition– Different units, different tasks, different skills,
different ways• Specialization • Division of labor
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Big problem
• Integration• Coordination
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Vertical structure
• Definition• Authority
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Pyramid
• Top level– Board of Directors– CEO– TMT
• Middle managers– Technology– Bad economy
• Which has led to….
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Span of control
• Definition – Narrow vs wide
• Huge issue – how many people can any one person effectively manage?
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4 direct reports
19 direct reports
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Delegation
• Definition • Key distinctions
– Responsibility– Authority– Accountability
• Advantages
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Decentralization
• Centralized organization– An organization in which high-level executives
make most decisions and pass them down to lower levels for implementation
• Decentralized organization– An organization in which lower-level managers
make important decisions– Relationship with delegation????
6-18
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Centralized Organization
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Decentralized Organization
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Horizontal structure
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Horizontal structure
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Horizontal structure
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Horizontal structure
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Horizontal structure
• Functional• Divisional• Matrix
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The Functional Organization
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The Divisional Organization
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Matrix Organizational Structure
6-29
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The Network Organization
6-30
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Coordination
• Standardization • Plans • Mutual adjustment
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Organizational agility
• Definition• Poster child
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Organizational agility
• Core competencies
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Organizational agility
• Core competencies• Strategic alliances
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Organizational agility
• Core competencies• Strategic alliances• Learning organization
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Organizational agility
• Core competencies• Strategic alliances• Learning organization• High-involvement organization
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Organizational size
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Organizational size
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Organizational size