The Virtual Organization — a small, core organization that Chapter 15 foundation of organizational structure sources major business functions The Boundaryless Organization — an organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.
Individual differences, experience, and the work task are key. Where does decision-making authority lie? How many individuals can a manager efficiently and effectively direct? Why Do Structures Differ? Allows use of specialized equipment.
Increased complexity of vertical communication. Organizational Designs and Employee Behavior It is difficult to generalize what will work best for all employees. Organic Model A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
Its Determinants and Outcomes Implicit Models of Organizational Structure Perceptions that people hold regarding structural variables formed by observing things around them in an unscientific fashion.
Reduced control over key parts of the business. Tight control; extensive work specialization, high formalization, high centralization Mechanistic and organic: Decentralizes decision making to the team level.
Formalization The degree to which jobs within the organization are standardized.
Expense of additional layers of management. Reduced control over key parts of Disadvantage: Span of control Centralization and decentralization 6. To what degree are articles subdivided into separate jobs?
Decentralization The degree to which decision making is spread throughout the organization. Mechanistic Model A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.
Imitation Strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven. Managers should be reminded that structural variables like work specialization, span of control, formalization, and centralization are objective characteristics that can be measured by organizational researchers.
Consider the mechanistic model and the organic model.
Specialized training is more efficient. Breaks down departmental barriers. The organic model is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
To whom do individuals and groups Chain of command report? Wider spans of management increase organizational Wider spans of management increase organizational efficiency. Provides maximum flexibility while concentrating on what the organization does best.
Provides maximum flexibility while Advantage: Organizational Structure How job tasks are formally divided, grouped, and coordinated. Chain of Command The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.
A loose structure; low specialization, low formalization, decentralized Mechanistic: Cost-minimization Strategy A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.
To what degree will there be rules Formalization and regulations to direct employees and managers? The Team Structure — the use of teams as the central device to coordinate work activities. However, most employees do not perceive structure the same way as researchers do.
The Answer Is Work specialization Departmentalization 2. Highly centralized with little or no departmentalization. On what basis will jobs be grouped together?
The mechanistic model is characterized by extensive departmentalization, high formalization, a limited information network, and centralization.
Unity of Command A subordinate should have only one superior to whom he or she is directly responsible. For example, work specialization may lead to higher productivity but can reduce job satisfaction.CHAPTER 15 Foundations of Organization Structure Exhibit Matrix Structure for a College of Business Administration Programs Executive Academic Undergraduate Master’s Ph.D.
Research Community Service Development Departments Accounting Finance Decision and Information Systems Management Marketing the organization’s. Chapter 15 Foundations of Organization Structure • What is Organizational Structure? o Identify the six elements of an organization’s structure.
o An organizational structure defines how job tasks are formally divided, grouped, and coordinated. Organizational structure depicts how job tasks are formally divided, grouped, and coordinated.
The key elements of organizational structure include work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.
You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure’s characteristics.
Weaknesses – Subunit conflicts with organizational goals – Obsessive concern with rules and regulations – Lack of employee discretion to deal with problems 16–12 Common Organization Designs (cont’d) Matrix Structure A structure that creates dual lines of authority and combines functional and product departmentalization.
An organization’s internal structure contributes to explaining and predicting behavior. An organization’s structure reduces ambiguity for employees. The specific effect of structural designs on performance and satisfaction I moderated by employees’ individual preferences and cultural norms.Download