EM 760 lec 4 - 08 - student slides

EM 760 lec 4 - 08 - student slides - Engineering Management...

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1 Engineering Management Organization Structure and Systems Session 4 January 29, 2008 Summary from Last Week • Design Elements: differentiation vs. integration; centralization vs. decentralization; standardization vs. mutual adjustment • Culture: Mechanistic vs. Organic • Defining and Communicating Culture • Socialization Lorsch’s Structural Design Framework – Article 14 • Basic structure – how to divide and coordinate work • Operating mechanisms – control procedures, information systems, reward and appraisal systems, and standardized rules for reinforcing and enhancing goal attainment
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2 Lorsch’s Structural Design Framework • Based on empirical study • Provides framework, not the one best way • Best fit with environment • Differentiation – differences in cognitive and emotional orientations and structural differences • Integration – collaboration between units required to work toward a common goal Lorsch’s Structural Design Framework • Assess environment • Differentiation decision • Integration decision – Low differentiation – no integrating mechanisms – High differentiation & needed integration - need integrating mechanisms • Structural mechanism decision – Power rests at level of information – Power rests with the unit with the environment knowledge – Legitimate power strongest when paired w/ expert power – Integrating mechanisms were best when balanced – Reward structures aided in developing integration Review – Org Design 9 Determine purpose or overall goal of the organization 9 Analyze environment 9 Determine the overall culture needed • Analyze adv and disadvantages of each type of structure • Select the one whose adv match and whose disadvantages can be tolerated
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3 Definition Reminders • Differentiation • Division of Labor • Organizational Role • Authority • Control • Hierarchy • Size, Shape, Design • Centralization Departmentation • Type and extent of differentiation • Basic structural grouping of people and responsibilities • Functional • Divisional – Product – Geography – Market •M a t r i x • Team Based
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4 Functional Organization Chart Organization Theory , by Hodge Functional Advantages • Maintains functional expertise • Can learn from each other • Easier to establish process and standards • Effective and efficient use of resources • Good for small org • Strong chain of command and control • Control over hiring, firing, developing and promoting • Good for developing core competencies Functional Disadvantages • Tall silos • Vertical communication • Decisions at top • Slow response • Restrictive rules • No big picture • Accounting problems • Narrow mgrs • Turf issues & dept rivalry
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This note was uploaded on 11/22/2009 for the course EM 760 taught by Professor Utley during the Spring '08 term at University of Alabama - Huntsville.

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EM 760 lec 4 - 08 - student slides - Engineering Management...

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