organizational behavior & organization designs
TRANSCRIPT
Organizational Behavior & Organization Designs Presented To :
Mam Sana Ashraf
Presented By :
Abdullah Razaq (314-Ms 070)Amna Maqsood (313-Ms 602)Azadar Hussain (313-Ms 593)M. Zeeshan (315-Ms 084)
Introduction of Organization Designs
Organizational design refers to the way managers structure their organization to reach the organization’s goals.
Structural elements include
Allocation of duties, tasks, and responsibilities between departments and individuals.
Reporting relationships.
Number of levels.
Introduction of Organization Designs Conti…
An incomplete picture because of informal arrangements and underlying behavioral processes.
Two basic goals of organizational design
Get information to decision makers.
Coordinate the interdependent parts of an organization.
Forms of Organizational Design
Three major forms Functional, Divisional, Matrix,
Combine functional and divisional designs to get a hybrid design
Several variations of the divisional design Several evolving forms of organizational
design
Organizational Design by Function
Groups tasks of the organization according to the activities they perform
Typically configured into departments such as manufacturing, engineering, accounting, marketing, . . .
Functional configurations can vary from one organization to another depending on tasks and goals
Organizational Design by Function Conti…
Strategy Focused on a few products or
services in well defined markets with few competitors
External environment Stable, Simple, Little uncertainty
Technical processRoutine with little
interdependence with other parts of the organization
Each major functional area helps align the company with each sector
Organizational Design by Function Conti…
Line and staff
Line does the major operating tasksStaff gives support and serve in
advisory roles. Emphasizes technical skills within each
function
Individuals work with others who share common backgrounds and views
Organizational Design by Function Conti…
Strengths Specialization
Brings specialists together
Collegial relationships develop among specialists
Clear career paths for specialists
Organizational Design by Function Conti…
Weaknesses
Does not help managers respond quickly to external changes.
Emphasis on specialization promotes a tunnel-vision view of the goal of the function.
Functional design can produce a set of widely accepted behaviors and perceptions with the organization.
Organizational Design by Division
Uses decentralization.
Divisions formed around products, services, locations, customers, programs, or technical process.
Often evolves from a functional design.
Organizational Design by Division Conti…
Strategy Focused on different products, services, customers, or
operating locations.
External environment Complex, fast changing, with moderate to high
uncertainty.
Technical process Non routine and interdependent with others parts of the
organization
Size Large
Organizational Design by Division Conti…
Strengths
Easily adapts to differences in products, services, clients, location, and the like. For example, products and differ in how manufactured and marketed.
Products, services, and customers are highly visible.
Often appear in division names.
Organizational Design by Division Conti…
WeaknessesLoses economies of scale because many functions
such as accounting are duplicated within the divisions.
Technical specialization is more diffuse compared to a functional design.
Hard to get uniform application of policies and procedures across divisions
Hybrid Organizational Design
Hybrid design uses both functions and divisions.
The divisions decentralize some functions, and the headquarters location centralizes others.
Centralized functions often are the costly ones.
Hybrid Organizational Design Conti…
Strategy Focused on many products or services
External environment Fast changing, moderate to high uncertainty, complex
Technical process Both routine and non routine, high interdependence
with functions and divisions
Size Large
Hybrid Organizational Design Conti…
Weaknesses
Focus on division goals can lose total organization view.
Non-uniform application of organizational policies.
Potential for high administrative overhead if staff expands without control.
Matrix Organizational Design
Used when two sectors of the external environment demand management attention.
Typically responding to the customer and technical parts of the environment.
Customers have special needs
Technology changes fast
Matrix Organizational Design Conti…
Conditions under which an organization may choose a matrix design:
Pressures from the external environment for a dual focus.
High uncertainty within the multiple sectors of the external environment
Constraints on human and physical resources
Matrix Organizational Design Conti…
Strengths
Responsive, flexible, efficient use of costly resources.
Potentially high levels of human motivation and involvement.
Managers can respond fast to market changes.
People get information about a total project, not only about their specialty.
Matrix Organizational Design Conti…
Weaknesses
High levels of ambiguity because of multiple authority relationships.
Ambiguity can encourage power struggles among managers.
Multiple authority relationships can give opposing demands to people.
High conflict potential can reach dysfunctional levels and act as significant stressors for people in matrix organizations
Types of Organizational Designs
Organizational designs fall into two categories
Traditional.Contemporary.
Traditional Designs Include simple structure, functional
structure, and divisional structure. Contemporary Designs
Include team structure, matrix structure, project structure, boundary less organization, and the learning organization.
Traditional Designs
Simple Structure
A simple structure is defined as a design with low departmentalization, wide spans of control, centralized authority, and little formalization. This type of design is very common in small start up business.
Traditional Designs Conti…
Divisional Structure
The divisional structure is a type of organizational structure that groups each organizational function into a division.
These division can correspond to either products or geographies.
Traditional Designs Conti…
Functional Structure
A functional structure is defined as a design that groups similar or related occupational specialties together. It is the functional approach to departmentalization applied to the entire organization.
Contemporary Designs Conti…
Team Structure
A team structure is a design in which an organization is made up of teams, and each team works towards a common goal.
Employees are more involved and empowered.
Contemporary Designs Conti…
Project Structure
A project structure is an organizational structure in which employees continuously work on projects. This is like a matrix structure; as one project is completed, employees move on to the next project.
Contemporary Designs Conti…
Matrix Structure
A matrix structure is one that assigns specialists from different functional areas to work on projects but who return to their areas when the project is completed.
Contemporary Designs Conti…
Learning Organization
A learning organization is defined as an organization that has developed the capacity to continuously learn, adapt, and change. In order to have a learning organization a company must have very knowledgeable employees who are able to share their knowledge with others and be able to apply it in a work environment.
Contemporary Designs Conti…
Boundary less Organization
A boundary less organization is one in which its design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. In other words it is an unstructured design.
A Process View of Organizational Design
Discards the view of packaging duties and tasks along functional or divisional lines.
The organization is a set of interconnected processes that weave across multiple functions.
Focuses on the results of a process not on people’s skills or functions.
People have responsibility for all or part of a process with decision authority over those parts.
Organizational Behavior
Organizational Behavior the study of human behavior, attitudes, and performance in organizations
Value of OB: Helps people attain the competencies needed to become
effective employees, team leaders/members, or managers
Competency: An interrelated set of abilities, behaviors, attitudes, and
knowledge needed by an individual to be effective in most professional and managerial positions
What Managers Do ?
Managers:
Who achieve goals through other people.
Managerial Activities:
Make decisions.
Allocate recourse. Direct activities other to attain goals.
Where Managers work
Organization: A consciously coordinated
social unit, composed of two or more people, that function on a relatively continuous basis to achieve a common goal or set of goals.
Management Functions Conti…
Organizing
Determines what tasks to be done, who is to do them, how to tasked are grouped, who reports to whom, and when decision are made
Management Functions Conti…
Planning
Planning which defines the overall strategy to achieve the organization’s goals
Management Functions Conti…
Leading
A function that includes motivating employee directing others, selection the most effective communication channels, and resolving the conflicts.
Management Functions Conti…
Controlling
Which ensures the things are going the same way as they should be with minimal disruption
Informational
Mentor
seeks and receives a wide variety of special information (much of it current) to develop a thorough understanding of the organization and environment; emerges as the nerve center of internal and external information for the organization.
Disseminator
Transmits information received from outsiders or from other subordinates to members of the organization. Some information is factual; some involves interpretation and integration of diverse value positions of organizational influences. Disseminating what is of value, and how, is a critical informational role.
Spokesman
transmits information (plans, policies, results, etc.) within and outside of the organization; serves as an expert on the organization's industry.
Mintzberg’s Managerial Role
Interpersonal Figurehead Leader Liaison
Informational Mentor Disseminator Spokesman
Decisional Entrepreneur Disturbance Handler Resource Allocator Negotiator
Interpersonal
Figurehead
Symbolic head; performs a number of routine duties of a legal or social nature.
Leader
Motivates and activates subordinates; performs staffing, training, and associated duties.
Liaison
Maintains a self-developed network of outside contacts and informers who provide favors and information.
Management Skills Conti…
Technical skills Comprise the knowledge and capabilities to
perform specialized tasks related to a specific field.
Human Skills The ability to work with understand, and
motivate other people, both individually and in groups.
Conceptual skills The mental ability to analyze and diagnose
complex situation
Contributing Disciplines to the OB Field Conti…
Sociology: The study of people in relation to their fellow human beings.
Contributing Disciplines to the OB Field Conti…
Social Psychology:
An area with in psychology that blends concept from psychology and sociology and that focuses on the influence of people on other people.
Management Skills
It is the ability to apply specialized knowledge or expertise as how professional they are with respect to their knowledge
Technical SkillsHuman skills Conceptual Skills
Contributing Disciplines to the OB Field Psychology:
The science that seeks to measure, explain, and something change the behavior of humans and other animals.
Contributing Disciplines to the OB Field Conti…
Anthropology:
The study of societies to learn about human beings and their activities
Contributing Disciplines to the OB Field Conti…
Political Science:
The study of the behavior of individuals and groups with in a political enjoinment
Challenges and Opportunities for OB
Improving Quality and Productivity Quality management (QM) Process reengineering
Responding to the Labor Shortage Changing work force demographics Fewer skilled laborers Early retirements and older workers
Improving Customer Service Increased expectation of service quality Customer-responsive cultures
The Dependent Variables Conti…
Productivity
A performance measure that include effectiveness and efficiency.
The Dependent Variables Conti…
Turnover
The voluntary and involuntary permanent withdrawal from an organization.
The Dependent Variables Conti…
Efficiency
The ratio of effective output to the input required to achieve it.
The Dependent Variables Conti…
Job Satisfaction
A general attributes towards one’s job the difference between the amount of reward workers receive and the amount thy believe they should receive.