Organizational Structure

Transcription

1 Chapter 13 Organizational Structure Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-1

2 Chapter Outline What Is Organizational Structure? Mechanistic and Organic Organizations Traditional Organizational Designs New Design Options What Major Forces Shape an Organization s Structure? Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-2

3 Organizational Structure 1. What are the key elements of organizational structure? 2. How flexible can organizational structures be? 3. What are some examples of traditional organizational designs? 4. What do newer organizational structures look like? 5. Why do organizational structures differ? Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-3

4 Exhibit 13-1 Pyramidal Organizational Structure Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-4

5 Exhibit 13-2 Flat Organizational Structure Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-5

6 Exhibit 13-4 Departmentalization by Function Source: CityOrgChart2005.pdf. Reprinted by permission of the City og Kingston. Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-6

7 Exhibit 13-5 Departmentalization by Product Nortel Networks Wireless Networks Enterprise Networks Wireline Networks Optical Networks Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-7

8 Exhibit 13-6 Departmentalization by Geography Royal Bank of Canada Canada Asia Europe United States Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-8

9 Exhibit 13-7 Departmentalization by Customer Dell Canada Individual Systems Business Systems S mall Business Users Medium/Large Business Users Government, Education, Health Care Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-9

10 Organizational Level Exhibit 13-8 Contrasting Spans of Control (Highest) Assuming span of 4 Members at each level Assuming span of Operatives = 4096 Operatives = 4096 Managers (Levels 1 6) = 1365 Managers (Levels 1 4) = 585 Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-10

11 Exhibit Mechanistic vs. Organic Models The mechanistic model The organic model High specialization Rigid departmentalization Clear chain of command Narrow spans of control Centralization High formalization Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition Cross-functional teams Cross-hierarchical teams Free flow of information Wide spans of control Decentralization Low formalization

12 Exhibit Matrix Structure Academic Programs departments Under graduate Master s Ph.D.. Research Executive Development Community Service Accounting Administrative studies Finance Information and decision sciences Marketing Organizational behaviour Quantitative methods Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-12

13 Exhibit Modular Structure Organizational Infrastructure Human Resource Management Technology Development Procurement Operations Marketing and Sales Service OUTSOURCED Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-13

14 Exhibit Virtual Structure Organizational Infrastructure Human Resource Management Technology Development Procurement Operations Marketing and Sales Service Alliance Partner A Alliance Partner B Alliance Partner C Alliance Partner D Alliance Partner E Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-14

15 Exhibit Model of the Environment Stable Abundant Simple Complex Scarce Dynamic Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-15

16 Summary and Implications 1. What are the key elements of organizational structure? There are six key elements that managers need to address when they design their organization s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. 2. How flexible can organizational structures be? There are two models that determine how flexible an organizations can be: mechanistic and organic. Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-16

17 Summary and Implications 3. What are some examples of traditional organizational designs? Some of the more common organizational designs found in use are the simple structure, the bureaucracy, and the matrix structure. 4. What do newer organizational structures look like? The new structural options for organizations involve breaking down the boundaries in some fashion, either internally, externally, or a combination of the two. 5. Why do organizational structures differ? Strategy, organizational size, technology, and environment determine the type of structure. Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-17

18 For Review 1. Why isn t work specialization an unending source of increased productivity? 2. What are the different forms of departmentalize? 3. All things being equal, which is more efficient, a wide or narrow span of control? Why? 4. What is a matrix structure? When would management use it? 5. How does a family business differ from other organizational structures? Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-18

19 For Review 6. Contrast the virtual organization with the boundaryless organization. 7. What type of structure works best with an innovation strategy? A cost-minimization strategy? An imitation strategy? 8. Summarize the size-structure relationship. 9. Define and give an example of what is meant by the term technology. 10. Summarize the environment-structure relationship. Chapter 13, Dr. Nghia Trong Nguyen, Organizational Behaviour, Fourth Canadian Edition 13-19