Organizational Structures - Handout 1

8/20/2019 Organizational Structures - Handout 1

1/24

Organisational Behaviour

ORGANISATIONAL DESIGN AND STRUCTURE


2/24

ORGANIZATIONAL BEHAVIOUR

The study and understanding of

individual and group beaviourand pa!!ern" o# "!ru$!ure in

order to help improve

organi%a!ional per#or&an$eand e##e$!ivene""'


3/24

Introduction

• According to McShane and Von Glinow (2003):

- ORGANISATIONAL STRUCTURE refers to the

DIVISION OF LABOUR as well as the atterns ofCOORDINATION! COMMUNICATION! WORK

FLOW! and FORMAL POWER that direct

organisational activities

-ORGANISATIONAL DESIGN refers to the rocessof CREATING and MODIFYING organisational

structures


4/24

Ob(e$!ive" o# S!ru$!ure Monitoring the activities of the organization.

Co-ordination of different parts of the

organization and different areas of work.

Flexibility in order to respond to futuredemands and developments.

The economic and efficient performance of

the organization and the level of resource

utilization.


5/24

Organi%a!ion "!ru$!ure and Cul!ure

ma!or determinant of an organization"s

structure is its culture.

#xternal influences$ common values$ beliefs

and attitudes will have a significant effect on

organizational processes including the design

of the structure.


6/24

Diviion o! L"#our "nd Coordin"tion

• All organisational structures have two

funda"ental re#uire"ents: $

- %ivision of la&our - 'oordination


7/24

Diviion o! L"#or

%ubdivision of work into

separate !obs assigned to

different people &otentially increases work

efficiency

'ecessary as company grows and

work becomes more complex


8/24

(nformal communication%haring information)igh media-richness (mportant in teams

Formal hierarchy*irect supervisionCommon in larger firms&roblems -- costly$ slow$ less popular with young staff

%tandardizationFormal instructionsClear goals+outputsTraining+skills

For$ o! Wor% Coordin"tion


9/24

E&'$'nt o! Or("ni)"tion"& Structur'

Or("ni)"tion"&

Structur'

E&'$'nt

S*"n o! Contro&

C'ntr"&i)"tion

D'*"rt$'nt+"&i)"tion

For$"&i)"tion


10/24

S*"n o! Contro&

• u"&er of eole directl

reorting to the ne*t level• Assu"es coordination

through direct suervision• +ider san of control

ossi&le when: – with other coordinating

"ethods

– su&ordinates, tas-s are si"ilar – tas-s are routine

• .latter structures re#uire

wider san (if sa"e / of

eole in the fir")


11/24

S*"n o! Contro& "t Duc% Un&i$it'd

%uc-s nli"ited 'anada recentl flattened its

organi1ational structure & re"oving laers of

"anage"ent he environ"ental conservationgrou wanted the flatter structure to e"ower

e"loees! and let the" "a-e decisions #uic-l

without having to go u the hierarch


12/24

C'ntr"&i"tion

CENTRLISATION "eans that for"al decision$

"a-ing authorit is held & a s"all grou of

eole DECENTRALISATION haens when decision

"a-ing authorit and ower are disersed

throughout the organisation


13/24

Forc' !or ,D'-c'ntr"&i)"tion

• Or("ni)"tion"& cri'•

M"n"('$'nt d'ir' !or contro&• Incr'"' conit'nc./ r'duc' cot

'entrali1ation

• C o $ * & ' 0 i t . + + i ) ' / d i v ' r i t . • D ' i r ' ! o r ' $ * o 1 ' r $ ' n t

%ecentrali1ation


14/24

For$"&i"tion

FORMALISATION is the degree to which

organisations standardise &ehaviour through

rules! rocedures! for"al training and related"echanis"s (McShane and Von Glinow! 2003)

4t is the esta&lish"ent of standardisation as a

coordinating "echanis"

Ma reduce fle*i&ilit


15/24

M'c2"nitic v3 Or("nic Structur'

Mechanistic

• 5igh for"ali1ation

• arrow san of control

• 5igh centrali1ation

Organic

• 6ow for"ali1ation

• +ide san of control

• 6ow centrali1ation


16/24

E!!'ct o! D'*"rt$'nt"&i)"tion

• 7sta&lishes wor- tea"s and

suervision structure

• 'reates co""on resources! "easuresof erfor"ance! etc

• 7ncourages infor"al co""unication

a"ong eole and su&units


17/24

Types of organization and

associated structures

Function"& Or("ni)"tion"& Structur'Organi1es e"loees around s-ills or

other resources ("ar-eting! roduction)

8resident

.inance 8roduction Mar-eting


18/24

Product or S'rvic' #"'d Structur'

Or("ni)' '$*&o.'' "round '*"r"t'/'$i+"utono$ou unit 1it2 co&&'ctiv'

r'*oni#i&it. !or " $"4or *"rt o! t2'

#uin' *roc' or !or " co$*&'t' c.c&' o!

1or%3 E(5 6o*it"&

8resident

7"ergenc nit O8% Surger nit


19/24

Geograpi$all)

ba"ed S!ru$!ure"

Organi%e" e&plo)ee" around geograpi$ area"*produ$!"* or $lien!" a$$ording !o par!i$ular need"or de&and"'Eg+ Lo$al Au!ori!) Servi$e"

Managing Director

Area A Area B Area C


20/24

Pro4'ct+B"'d M"tri0 Structur'

8ro9ect 'Manager

8ro9ect BManager

8ro9ect AManager

7ngineeringManager Mar-etingManager SoftwareManager

8resident

7"loees are te"oraril assigned to a secificro9ect tea" and have a er"anent functional unit


21/24

F'"tur' o! T'"$+B"'d Structur'

Self$directed wor- tea"s

ea"s organi1ed around wor- rocesses

Ver flat san of control

Ver little for"ali1ation

suall found within divisionali1ed structure


22/24

N't1or% Or("ni)"tion"& Structur'

Cor'Fir$

,U3S3A3-

8roduct

%evelo"ent

.ir"

(.rance)

Mar-eting

.ir"

()

'usto"er

Service

.ir"('anada)

8roduction

.ir"

('hina)

Accounting

.ir"

(SA)


23/24

N't1or% Or("ni)"tion"& Structur'

• A networ- structure is an alliance of several

organisations for the urose of creating a roduct or

serving a client (McShane and Von Glinow! 2003)

• his colla&orative structure ticall consists ofseveral satellite organisations &eehived around a

hu&;core fir" (McShane and Von Glinow! 2003)

• he core fir" coordinates the networ- rocess and

rovides one or two other core co"etencies such as

"ar-eting or roduct develo"ent (McShane and

Von Glinow! 2003)


24/24

Contin('nci' o! Or("ni"tion"& D'i(n

• .our contingencies of organisational design

are: $

- Organisational si1e

- echnolog

- 7*ternal environ"ent

- Organisational strateg

Organizational Structures - Handout 1

Documents

Transcript of Organizational Structures - Handout 1