organizational structures - handout 1
TRANSCRIPT
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Organisational Behaviour
ORGANISATIONAL DESIGN AND STRUCTURE
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ORGANIZATIONAL BEHAVIOUR
The study and understanding of
individual and group beaviourand pa!!ern" o# "!ru$!ure in
order to help improve
organi%a!ional per#or&an$eand e##e$!ivene""'
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Introduction
• According to McShane and Von Glinow (2003):
- ORGANISATIONAL STRUCTURE refers to the
DIVISION OF LABOUR as well as the atterns ofCOORDINATION! COMMUNICATION! WORK
FLOW! and FORMAL POWER that direct
organisational activities
-ORGANISATIONAL DESIGN refers to the rocessof CREATING and MODIFYING organisational
structures
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Ob(e$!ive" o# S!ru$!ure Monitoring the activities of the organization.
Co-ordination of different parts of the
organization and different areas of work.
Flexibility in order to respond to futuredemands and developments.
The economic and efficient performance of
the organization and the level of resource
utilization.
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Organi%a!ion "!ru$!ure and Cul!ure
ma!or determinant of an organization"s
structure is its culture.
#xternal influences$ common values$ beliefs
and attitudes will have a significant effect on
organizational processes including the design
of the structure.
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Diviion o! L"#our "nd Coordin"tion
• All organisational structures have two
funda"ental re#uire"ents: $
- %ivision of la&our - 'oordination
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Diviion o! L"#or
%ubdivision of work into
separate !obs assigned to
different people &otentially increases work
efficiency
'ecessary as company grows and
work becomes more complex
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(nformal communication%haring information)igh media-richness (mportant in teams
Formal hierarchy*irect supervisionCommon in larger firms&roblems -- costly$ slow$ less popular with young staff
%tandardizationFormal instructionsClear goals+outputsTraining+skills
For$ o! Wor% Coordin"tion
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E&'$'nt o! Or("ni)"tion"& Structur'
Or("ni)"tion"&
Structur'
E&'$'nt
S*"n o! Contro&
C'ntr"&i)"tion
D'*"rt$'nt+"&i)"tion
For$"&i)"tion
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S*"n o! Contro&
• u"&er of eole directl
reorting to the ne*t level• Assu"es coordination
through direct suervision• +ider san of control
ossi&le when: – with other coordinating
"ethods
– su&ordinates, tas-s are si"ilar – tas-s are routine
• .latter structures re#uire
wider san (if sa"e / of
eole in the fir")
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S*"n o! Contro& "t Duc% Un&i$it'd
%uc-s nli"ited 'anada recentl flattened its
organi1ational structure & re"oving laers of
"anage"ent he environ"ental conservationgrou wanted the flatter structure to e"ower
e"loees! and let the" "a-e decisions #uic-l
without having to go u the hierarch
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C'ntr"&i"tion
CENTRLISATION "eans that for"al decision$
"a-ing authorit is held & a s"all grou of
eole DECENTRALISATION haens when decision
"a-ing authorit and ower are disersed
throughout the organisation
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Forc' !or ,D'-c'ntr"&i)"tion
• Or("ni)"tion"& cri'•
M"n"('$'nt d'ir' !or contro&• Incr'"' conit'nc./ r'duc' cot
'entrali1ation
• C o $ * & ' 0 i t . + + i ) ' / d i v ' r i t . • D ' i r ' ! o r ' $ * o 1 ' r $ ' n t
%ecentrali1ation
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For$"&i"tion
FORMALISATION is the degree to which
organisations standardise &ehaviour through
rules! rocedures! for"al training and related"echanis"s (McShane and Von Glinow! 2003)
4t is the esta&lish"ent of standardisation as a
coordinating "echanis"
Ma reduce fle*i&ilit
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M'c2"nitic v3 Or("nic Structur'
Mechanistic
• 5igh for"ali1ation
• arrow san of control
• 5igh centrali1ation
Organic
• 6ow for"ali1ation
• +ide san of control
• 6ow centrali1ation
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E!!'ct o! D'*"rt$'nt"&i)"tion
• 7sta&lishes wor- tea"s and
suervision structure
• 'reates co""on resources! "easuresof erfor"ance! etc
• 7ncourages infor"al co""unication
a"ong eole and su&units
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Types of organization and
associated structures
Function"& Or("ni)"tion"& Structur'Organi1es e"loees around s-ills or
other resources ("ar-eting! roduction)
8resident
.inance 8roduction Mar-eting
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Product or S'rvic' #"'d Structur'
Or("ni)' '$*&o.'' "round '*"r"t'/'$i+"utono$ou unit 1it2 co&&'ctiv'
r'*oni#i&it. !or " $"4or *"rt o! t2'
#uin' *roc' or !or " co$*&'t' c.c&' o!
1or%3 E(5 6o*it"&
8resident
7"ergenc nit O8% Surger nit
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Geograpi$all)
ba"ed S!ru$!ure"
Organi%e" e&plo)ee" around geograpi$ area"*produ$!"* or $lien!" a$$ording !o par!i$ular need"or de&and"'Eg+ Lo$al Au!ori!) Servi$e"
Managing Director
Area A Area B Area C
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Pro4'ct+B"'d M"tri0 Structur'
8ro9ect 'Manager
8ro9ect BManager
8ro9ect AManager
7ngineeringManager Mar-etingManager SoftwareManager
8resident
7"loees are te"oraril assigned to a secificro9ect tea" and have a er"anent functional unit
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F'"tur' o! T'"$+B"'d Structur'
Self$directed wor- tea"s
ea"s organi1ed around wor- rocesses
Ver flat san of control
Ver little for"ali1ation
suall found within divisionali1ed structure
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N't1or% Or("ni)"tion"& Structur'
Cor'Fir$
,U3S3A3-
8roduct
%evelo"ent
.ir"
(.rance)
Mar-eting
.ir"
()
'usto"er
Service
.ir"('anada)
8roduction
.ir"
('hina)
Accounting
.ir"
(SA)
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N't1or% Or("ni)"tion"& Structur'
• A networ- structure is an alliance of several
organisations for the urose of creating a roduct or
serving a client (McShane and Von Glinow! 2003)
• his colla&orative structure ticall consists ofseveral satellite organisations &eehived around a
hu&;core fir" (McShane and Von Glinow! 2003)
• he core fir" coordinates the networ- rocess and
rovides one or two other core co"etencies such as
"ar-eting or roduct develo"ent (McShane and
Von Glinow! 2003)
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Contin('nci' o! Or("ni"tion"& D'i(n
• .our contingencies of organisational design
are: $
- Organisational si1e
- echnolog
- 7*ternal environ"ent
- Organisational strateg