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Module_11 - Organisational structure Organisational Dr...

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Unformatted text preview: Organisational structure Organisational Dr Retha Wiesner What is Organisational Structure What Organisational structure is how job Organisational tasks are formally divided, grouped, and coordinated, and includes the degree of complexity, formalisation, and centralisation in the organisation. centralisation Different perspectives on organisations Different As a machine - rational entity established to As machine achieve goals. achieve As organisms - organisations continually As organisms adapt themselves to meet the changing demands and opportunities within the environment. environment. As brains - organisations develop a capacity As brains to learn and solve problems. As political systems – organisations are As political dynamic contexts in which people pursue their individual and collective interests their Work specialisation Work The degree to which tasks in the organisation are subdivided in to separate jobs, or division of labor. subdivided Departmentalisation - the basis by which jobs are Departmentalisation grouped together Functional Product Geographic Process Customer Chain of command – Chain Unbroken line of authority that extends from the top of the organisation to the lowest echelon and clarifies who reports to whom whom Authority Responsibility Unity of Command Span of control Refers to the number of subordinates a manager can efficiently and effectively direct. Centralisation the degree to which decision making is concentrated at a single point in the organisation Decentralisation Decentralisation Dispersed decision making. Is where decision discretion where is pushed down to lower-level employees. is Formalisation Formalisation the degree to which jobs within the organisation are standardised The Simple Structure ­ A structure characterised by a low degree of departmentalisation, wide spans of control, authority centralised in a single person, and little formalisation. Jack Gold's Men's Store Jack Gold owner, manager Johnny Moore Edna Joiner Norma Sloman Jerry Plotkin Helen Wright salesperson salesperson salesperson salesperson Cashier The Bureaucracy ­ A structure with highly routine operating tasks achieved through specialisation, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. United States Executive Branch President White House Staff Secretary of Defense Secretary of Veterans Affairs Secretary of Educaton Chairman Joint Chiefs of Staff Secretary of Housing Secretary of Secretary the Navy the Secretary of the Army Army Secretary of the Secretary Air Force Air Secretary of State Secretary of Interior Chief of Staff Staff General Airborne Secretary of Energy General Artillery General Infantry Secretary of Health and Welfare The Matrix Structure ­ Matrix organisation charts have to be read in two directions ­ one giving division into functional specialisations, and the other the current array of projects, showing the composition of project teams Program Undergraduate Masters PhD Research Executive Development Community Service Accounting Administrative studies Information and decision sciences Marketing Organizational behavior Quantitative methods Team 1 Team 2 Team 3 Finance Team 4 Team 5 Team 6 The Team Structure The The use of teams as the central device The to coordinate work activities to The Virtual Organisation Independent Independent research and development firm firm Advertising Advertising agency agency Executive Group Group Factories in Factories South Korea South Commissioned Commissioned sales representatives representatives The Boundaryless Organisation The An organisation that seeks to eliminate vertical and An horisontal, as well as external and internal, barriers in an organisation. Removing vertical boundaries means flattening the Removing hierarchy. Removing horisontal boundaries means creating Removing some sort of processes so that employees work together cross-functionally. Removing the external boundaries may mean Removing transcending time and space. For example, crosstranscending functional work teams in ICI may have members who functional are located in the US and in Japan, Australia etc. and those teams work out processes to 'talk' regularly and work together toward their team goals. work Why Do Structures Differ? Why Mechanistic Model High specialization Rigid departmentalization High Formalization Limited Information Network Centralization Clear Chain of Command Good for cost minimization Why Do Structures Differ? Why (cont) Organic Model Flat (wide span of control) Comprehensive Information Network Participative Decision Making Cross-functional Teams Good for innovation Factors Influencing Choice of Structure Structure Strategy Organisation Size Technology Environment Strategy Strategy Structure should follow strategy. Strategy is the Strategy means that the management has set in order to meet organisational objectives. Imitation Strategy is a strategy that seeks to move into new products or new markets only after their viability has already been proven. Cost-minimization Strategy is a strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. Innovation Strategy is a strategy that emphasizes the introduction of major new products and services. Three­dimensional Model of the Environment Stable Stable Ab un da nt Simple Simple Complex Complex Dynamic Dynamic Sc ar ce Organization Structures: Its Determinants and Outcomes Causes • Strategy Strategy determines Structural designs • Size Size • Mechanistic Mechanistic • Technology Technology leads to • Organic Organic •Environment Moderated by Moderated individual differences differences Performance Performance and satisfaction satisfaction ...
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