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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. As brains - organisations develop a capacity
to learn and solve problems. As political systems – organisations are
dynamic contexts in which people pursue
their individual and collective interests
their Work specialisation
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
grouped together Functional Product
Customer Chain of command –
Unbroken line of authority that extends from the top of the
organisation to the lowest echelon and clarifies who reports to
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
Dispersed decision making. Is where decision discretion
is pushed down to lower-level employees.
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
White House Staff Secretary of Defense Secretary of Veterans Affairs
Secretary of Educaton Chairman
Joint Chiefs of Staff Secretary of Housing
the Secretary of the
Army Secretary of the
Air Secretary of State
Secretary of Interior Chief of
Airborne Secretary of Energy
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
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
Group Factories in
representatives The Boundaryless Organisation
The An organisation that seeks to eliminate vertical and
horisontal, as well as external and internal, barriers in
Removing vertical boundaries means flattening the
Removing horisontal boundaries means creating
some sort of processes so that employees work
Removing the external boundaries may mean
transcending time and space. For example, crosstranscending
functional work teams in ICI may have members who
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?
(cont) Organic Model Flat (wide span of control)
Comprehensive Information Network
Participative Decision Making
Good for innovation Factors Influencing Choice of
Structure Strategy Organisation Size Technology Environment Strategy
Strategy Structure should follow strategy. Strategy is the
means that the management has set in order to meet
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
Innovation Strategy is a strategy that emphasizes
the introduction of major new products and services. Threedimensional Model of the Environment Stable
ce Organization Structures: Its Determinants and Outcomes
Strategy determines Structural designs • Size
Size • Mechanistic
Mechanistic • Technology
Technology leads to • Organic
Organic •Environment Moderated by
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This note was uploaded on 06/09/2011 for the course MGT 5000 taught by Professor Rethawiesner during the Spring '11 term at University of Southern Queensland, Ipswich.
- Spring '11