Bureaucratic organizations a bureaucracies are

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2.Bureaucratic Organizationsa.Bureaucracies are designed for efficiency, and rely on high levels ofwork specialization, formalization, centralization of authority, rigidand well-defined chains of command, and relatively narrow spansof controlb.Functional Structure13-5
Chapter 13 – Organizational Structurei.Groups employees by the functions they perform for theorganization – most mechanistic of bureaucratic organizationsc.Multi-Divisional Structurei.Product structure – employees are grouped around productsii.Geographic structure – employees are grouped by locationOB Internationally.This text box looks at IBM’s organizationalstructure, noting that IBM is moving from a geographic structureto a more functional structure.As the world becomes flatterthrough technology, clients expect the best talent from aroundthe world, not just the best talent that happens to be sitting intheir city.One discussion question that might be asked is, “Arethere any drawbacks to this approach?”Students shouldconsider time zones, language difficulties, and culturaldifferences in their answers.iii.Client structure – employees are grouped around a specificclientiv.Matrix structures – combine two types of structure into one,typically based on functional and projects or product divisionsa.) Matrix structures are very flexible, and allow organizations toput together teams based on employee experience and skillb.) Matrix structures give each employee two chains ofcommand, two groups with which to interact, and twosources of information to consider – can create high stresslevels for employeesE.Summary: Why Do Some Organizations Have Different Structures ThanOthers? (Figure 13-6)III.How Important Is Structure?A.Changes to an organization’s structure (restructuring) can have negativeeffects on performance, at least in the short term, because they hinderlearning and decision making and increase employee stressB.Restructuring has a moderate negative effect on commitment, with affectcommitment being much lower in organizations that restructure13-6
Chapter 13 – Organizational StructureIV.Application: RestructuringA.Organizations today frequently restructure – often laying off managers inan attempt to create a flatter organizationB.One of the best ways in which managers can help a restructuring tosucceed is to help to manage the guilt and remorse felt by layoff survivors– those people who don’t leave the company – by giving them a strongersense of control and communicating with them frequently and honestly.Try This!Ask students to give you a show of hands if their families have beenaffected by the restructuring of an organization.The show of hands will likely belarger than you might expect. For those students who have not been affected,this demonstration helps to bring home how widespread this issue is, especiallyover the last two decades. How did their families feel about the companies thatrestructured? Perhaps some of them have been affected personally as well.

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Term
Spring
Professor
Danny
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