MultiMedia by Stephen M. Peters© 2002 South-Western Organizational Culture and Change.
MultiMedia by Stephen M. Peters 2002 South-Western Organizational Design.
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Transcript of MultiMedia by Stephen M. Peters 2002 South-Western Organizational Design.
MultiMedia by Stephen M. Peters © 2002 South-Western
Organizational Design
MultiMedia by Stephen M. Peters © 2002 South-Western
OrganizationsCommon Elements
Operate with authority
Have departments
Use line and staff positions
MultiMedia by Stephen M. Peters © 2002 South-Western
Organizational Design Objectives
Respond to change
Integrate new
elements
Encourage flexibility
Coordinate the
components
MultiMedia by Stephen M. Peters © 2002 South-Western
Mechanistic Structure is Characterized By
Rigidly defined tasks
Formalization
Rules and regulations
Centralized decision making
Emphasis on control from top levels down
Vertical communication
MultiMedia by Stephen M. Peters © 2002 South-Western
Mechanistic versus Organic Structures
MultiMedia by Stephen M. Peters © 2002 South-Western
Organic Structure
1. Free flowing.2. Has few rules and regulations.3. Decentralizes decision making.4. Referred to as the horizontal structure.5. Allows changes to be made rapidly as the needs require.6. Frequently redefines tasks to fit employee and environmental needs.
MultiMedia by Stephen M. Peters © 2002 South-Western
Contingency Factors
MultiMedia by Stephen M. Peters © 2002 South-Western
Influence of Strategy on Structure
MultiMedia by Stephen M. Peters © 2002 South-Western
Uncertain Environment Calls For
— Organic structure that emphasizes:
• coordination
• less formal procedures
• flexibility
MultiMedia by Stephen M. Peters © 2002 South-Western
Small Organizations
Little divisionof labor
Few rules and regulations
Informal performance appraisals
Informal budget development procedures
MultiMedia by Stephen M. Peters © 2002 South-Western
Large Organizations
Mechanistic Greater division of labor
More elaborate internal systems
More rules and regulations
MultiMedia by Stephen M. Peters © 2002 South-Western
Organizational Life Cycle and Structural Characteristics
MultiMedia by Stephen M. Peters © 2002 South-Western
Producing Goods in Small Quantities
Unit production technology
Small batch technology
MultiMedia by Stephen M. Peters © 2002 South-Western
Large Volume of Standardized Products Technology
Large batch technology
Mass production technology
MultiMedia by Stephen M. Peters © 2002 South-Western
MultiMedia by Stephen M. Peters © 2002 South-Western
Functional Structure• Groups positions into departments based on similar skills,
expertise, and resources.Advantages– Economics of scale– Minimizes duplication of personnel and equipment– Simplifies trainingDisadvantages– Employees may have little understanding of and concern for
the specialty areas outside their own functional area– Barriers in communication, cooperation, and coordination– Functional structure response time to changes may be slow
MultiMedia by Stephen M. Peters © 2002 South-Western
Divisional Structure
Groups departments based on organizational outputs.
Self-contained strategic business units.
Creates a set of autonomous mini-companies.
MultiMedia by Stephen M. Peters © 2002 South-Western
Divisional Structure
Advantages– Focuses the attention of employees and managers on
results for the product, the customer, or the geographical area.
– Flexible and responsive to change.– Singleness of purpose.– Responsibility and accountability for performance
are easier to target.
MultiMedia by Stephen M. Peters © 2002 South-Western
Divisional Structure
Disadvantages– Duplication of activities and resources.– Loses efficiency and economies of scale.– Lack of technical specialization, expertise, and
training can result.– Coordination may suffer.
MultiMedia by Stephen M. Peters © 2002 South-Western
Matrix Structure
Combines the advantages of functional specialization with the focus and accountability of the divisional
structure.
Employs dual lines of authority.
MultiMedia by Stephen M. Peters © 2002 South-Western
Matrix Design Used in One ofTwo Situations
First, it is used when a firm offers a diverse set of products, has a complex environment, and requires functional expertise.
Second, it is used when managers want to maximize economies of scale and shared resources.
MultiMedia by Stephen M. Peters © 2002 South-Western
Team StructureAdvantages—Breaks down barriers across departments.—Speeds up decision making and response time.—Employees are strongly motivated.—Improvement over the matrix structure.
Disadvantages—Depends on employees who learn and train for
success.—A large amount of time may be required for team
meetings.
MultiMedia by Stephen M. Peters © 2002 South-Western
Network Structure Known as “Dynamic Network”
• A small central organization relies on other organizations to perform critical functions on a contract basis.Advantages– Provides flexibility.– Overhead remains low.Disadvantages– Lack of control.