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chapter 7 outline

chapter 7 outline - Chapter 7 Outline Designing...

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Chapter 7 Outline Designing Organizational Structure The Organizational Environment In the case of scarce resources: More change in the environment = more uncertainty = more tough decision making by managers Speed decision making/communication make it easier to obtain scarce resources Organizational choices: -Decentralize authority -Allow more flexible structures and entrepreneurial cultures -Empower lower level employees -Encourage values and norms that place emphasis on change and innovation In the case of a stable environment: External environment stable = resources readily available = less uncertainty = less communication and tough decision making Managers make organizational choices that: -Bring more stability/formality to the structure -Establish values and norms -Emphasize formality and obedience Managers like to make decisions within a clearly defined hierarchy and use predefined standard operating procedures (SOP’s) See figure 7.1 -Managers think about what’s going on in each bubble and then plan their organizational structure accordingly Strategy There should be different strategies for different organizational structures/cultures Differentiation strategies, low-cost strategies, international strategies used depending on the situation Technology Technology is the combination of skills, knowledge, machines, and computers that are used to design, make, and distribute goods and services
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The more complicated the technology, the more difficult it is to regulate or control it; more unexpected situations; the greater the need for a flexible structure and progressive culture The more routine the technology, a formal structure is appropriate 2 factors determine what makes technology routine or complicated: - Task Variety -the number of new or unexpected problems or situations that occurs when performing a task - Task Analyzability -the degree to which programmed solutions are available to solve those problems Human Resources More highly skilled its workforce = higher number of employees who work together in groups/teams = more likely organization uses flexible, decentralized structure Highly skilled employees usually want more freedom and dislike close supervision When designing organizational structure, managers should pay close attention to the needs of the workforce, the complexity of the kind of work employees perform Less skilled like structure More skilled dislike structure Grouping Tasks into Jobs: Job Design
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