EM 760 lec 5 - 08 - student slides

EM 760 lec 5 - 08 - student slides - 1 Engineering...

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Unformatted text preview: 1 Engineering Management Organization Structure and Systems Session 5 February 5, 2008 Review – Org Design 9 Determine purpose or overall goal of the organization 9 Analyze environment 9 Determine the overall culture needed 9 Analyze adv and disadvantages of each type of structure 9 Select the one whose adv match and whose disadvantages can be tolerated Outline for Today • Design Elements – Numbers, Size and Shape – Span of Control • Control – Bureaucracy – Authority, Power and Responsibility – MBO • Rewarding A while hoping for B • Communication • Barnard’s Theory of Authority • Mintzberg’s Management Roles 2 The Hierarchy • As organization grows • # of employees increases • Specialization increases • Differentiation increases • Motivation problems increase • In response, for control (traditional org) • # of managers increases • Levels in org increase Advantages of More Managers • Influence behavior • More face-to-face interaction • More on-the-job learning • Help employees develop skills – Technical – Managerial • Increase core competency Disadvantages of More Managers • Hinders direct communication • Slows decision making • Could hinder decentralization and the transfer of responsibility • More overhead costs 3 Size and Shape • Span of control • Org levels • Span and levels are inversely proportional • Tall organizations • Flat organizations • Recent research Span and Levels Tall vs. Flat Organizations • Communication • Information flow • Decisions • Response to customer needs • Communication distortion • Motivation • Costs 4 Reasons for Needing Dramatic Changes • Bad management • Did not recognize the need • Prefer to do nothing • Pay little attention • No long-term consequence cognition • If org downsizes, what must also happen? Parkinson’s Law • As ships decreased, org increased • Bigger empire – more status • More managers lead to more work • Organization will expand at 6.4% / year regardless of the input or output Factors Affecting Shape • Principle of minimum chain of command • Ability to adequately supervise # of employees and interactions • Number of interrelated tasks • Complexity of tasks • Horizontal differentiation • Centralization vs. decentralization • Standardization 5 Span of Control Issues • Narrow Span – Close supervision...
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EM 760 lec 5 - 08 - student slides - 1 Engineering...

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