Lecture Six Organizational Structure
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Transcript of Lecture Six Organizational Structure
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Lecture Six
Organizational Structure
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Fundamental of Organizing
Organizing is the process of establishing orderly uses for all resources within the management system.
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Basic Types of Organizational Structure
The Simple structure The Functional Structure The Divisional Structure The Conglomerate Structure The Hybrid Structure The Matrix Structure The Team-Based Structure The Network Structure
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The Functional Structure Grouping by similar work specialties
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The Divisional Structure Grouping by similarity of purpose
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The Conglomerate Structure
Grouping by industry
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The Hybrid Structure Functional & Divisional Used within the
Same Organization
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The Matrix Structure A Grid of Functional & Divisional for Two
Chains of Command
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Types of The Matrix Structure
Weak/Functional Matrix
Balanced/Functional Matrix
Strong/Project Matrix
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The Team-Based Structure Eliminating Functional Barriers to Solve
Problems
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The Network Structure Connecting a Central Core to Outside Firms
by Computer Connections
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Network Structure: MySQL Software maker 320 workers Located in 25
countries 70% of workers
work from home
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Network Structure:H&M Not owning any
factories A network of 700
suppliers More than two-
thirds of them are in Asian countries
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Group Discussion
Many people like the social interaction that comes with working in a physical office with other people. Others, however, welcome the opportunity to do task-oriented work in a home office. Which would you favor, why?
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Factors in Creating the Best Structure
The Environment Size Technology Life Cycle
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The Environment:Mechanistic vs. Organic Mechanistic Centralized
hierarchy of authority
Many rules and procedures
Specialized tasks Formalized
communication Few teams or tasks
forces Narrow span of
control, taller structure
Organic Decentralized
hierarchy of authority
Few rules and procedures
Shared tasks Informal
communication Many teams and
task forces Wider span of
control, flatter structure
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The Environment:Differentiation vs. Integration
Differentiation: when forces push the organization apart Differentiation is the tendency of the
parts of an organization to disperse and fragment.
Integration: when forces pull the organization together Integration is the tendency of the parts
of an organization to draw together to achieve a common purpose.
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Size
The larger the organization, the more mechanistic
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Technology
Small-Batch Technology
Custom–Made Products Made by Organic Organization
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Technology
Large-Batch Technology: Mass – Produced Products Made by Mechanized Organization.
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Technology
Continuous-Process: Highly Routinized Products Made by Organic Organization
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Life Cycle
Stage 1. The Birth Stage – Nonbureaucratic
Stage 2. The Youth Stage – Prebureaucratic
Stage 3. The Midlife Stage – Bureaucratic
Stage 4. The Maturity Stage – Very Bureaucratic