Student Chapter08 - Organization Design Prentice Hall,...

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Unformatted text preview: Organization Design Prentice Hall, Chapter 8 1 Learning Objectives • Learn six characteristics of organization structure • Contrast mechanistic and organic designs • Review four contingency variables that explain structural differences • Explain how environmental uncertainty affects organization structure Prentice Hall, Chapter 8 2 Learning Objectives • Describe the bureaucracy and its strengths • Explain the advantages and disadvantages of the matrix structure • Describe the virtual organization and its strength Prentice Hall, Chapter 8 3 Designing Organization Structure Œ To what degree are tasks subdivided into separate jobs?  On what basis will jobs be grouped together? Ž To whom do individuals and groups report?  How many individuals can a manager efficiently and effectively direct?  Where does decision-making authority lie? ‘ To what degree will there be rules and regulations to direct employees and managers? Prentice Hall, Chapter 8 4 Lo w Productivity High Work Specialization Impact from Human Diseconomies Impact from Economies of Specialization Low Prentice Hall, High Work Specialization Chapter 8 5 Other Aspects of Organization Structure Departmentalization Chain of Command Span of Control Prentice Hall, Chapter 8 6 Organizational Decision Making Low Managerial Control Employee Empowerment Centralized Decision Making High Decentralized Decision Making Employee Empowerment Managerial Control Prentice Hall, Chapter 8 7 High Low The Degree of Formalization Higher Standardization Low Formalization High High Formalization Higher Prentice Hall, Employee Freedom Lower Lower Chapter 8 8 The Contingency Approach to Organization Design Mechanistic Organic • High Specialization • Cross-Functional Teams • Rigid Departmentalization • Cross-Hierarchical Teams • Clear Chain of Command • Free Flow of Information • Narrow Spans of Control • Wide Spans of Control • Relatively Centralized • Relatively Decentralized • High Formalization • Low Formalization Prentice Hall, Chapter 8 9 Contingency Factors and Organization Design StrategyStructure Framework Prentice Hall, Chapter 8 Size-Strategy Relationship 10 Contingency Factors and Organization Design Technology Technology and Structure and Prentice Hall, Chapter 8 Environmental Uncertainty 11 The Increasing Popularity of the Organic Structure Environmental Uncertainty Innovation Strategies Non-Routine Technologies Smaller-Sized Units Prentice Hall, Chapter 8 12 The Evolutionary Approach to Organization Design Prentice Hall, Chapter 8 13 Few Departments Wide Spans Wide of Control of The Simple Structure Little Formalization Prentice Hall, Chapter 8 Centralized Authority 14 The Bureaucracy Functional Structure Prentice Hall, Chapter 8 Divisional Structure 15 Cross-Functional Coordination Clear Accountability The Matrix Structure Dual Chain of Command Prentice Hall, Chapter 8 Allocation of Specialists 16 The Team­Based Structure Empower Workers Prentice Hall, Chapter 8 Hold Teams Accountable 17 Autonomous Internal Units Free-Standing Business Units No Centralized Control Market-Based Accountability Prentice Hall, Chapter 8 18 The Virtual Organization Advertising Agency Independent R & D Consulting Firm Executive Group Commissioned Sales Representatives Factories in South Korea Prentice Hall, Chapter 8 19 ...
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This note was uploaded on 02/22/2012 for the course FINANCE 390:300:03 taught by Professor Palmon during the Fall '10 term at Rutgers.

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