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Chapter6Organizational Structure and Design

How Do Authority and Power Differ?

Authority:

a right whose legitimacy is based on an authority figure’s position in the organization; it goes with the job

Power:

an individual’s ability to influence decisions

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Power Versus Authority

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Sources of Power

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Span of Control

Most effective and efficient span depends on:

• Employee experience and training (more they have, larger span).

• Similarity of employee tasks (more similarity, larger span).

• Complexity of those tasks (more complex, smaller span).

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Centralization & Decentralization

Centralization

decision making takes place at upper levels of the organization

Decentralization

lower-level managers provide input or actually make decisions

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Formalization

How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures.

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6.2Identify the contingency

factors that favor either

the mechanistic model

or the organic model of

organizational design.

Models of Organizational Design

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Strategy and Structure

Certain structural designs work best with different organizational strategies.

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Size and Structure

Mechanistic

More than 2,000 employees makes forces organizations to become more mechanistic.

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Organic

Less than 2,000 employees can be organic.

Technology and Structure

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Environment and Structure

Stable environment: mechanistic structure

Dynamic environment: organic structure

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6.3 Compare and

contrast traditional

and contemporary

organizational

designs.

Traditional Organizational Designs

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Contemporary Organizational Design

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Team Structure

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A structure in which the entire organization is made up of work teams that do the organization’s work.

Matrix and Project Structures

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Project Structure

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A structure in which employees continuously work on projects.

Boundaryless Organizations

An organization whose design is not imposed by a predefined structure.

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6.4Discuss the design

challenges faced by

today’s

organizations.

Current Organizational Design Challenges

• Keeping employees connected

• Managing global structural issues

• Building a learning organization

• Designing flexible work arrangements

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A Learning Organization

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Flexible Work Arrangements

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• Telecommuting

• Compressed workweek

• Flextime

• Job Sharing

• Contingent workers

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