PPT On Organizational Structure

Download

Organizational Structure Presentation Transcript:
1.Organizational Structure
How job tasks are formally divided, grouped, and coordinated.

2.Key Design Questions and Answers for Designing the Proper Organization StructureThe Key Question     The Answer Is Provided By   
1.     To what degree are articles     Work specialization     subdivided into separate jobs?       
2.     On what basis will jobs be grouped     Departmentalization     together?       
3.     To whom do individuals and groups     Chain of command     report?       
4.     How many individuals can a manager     Span of control     efficiently and effectively direct?       
5.     Where does decision-making     Centralization     authority lie?     and decentralization       
6.     To what degree will there be rules     Formalization     and regulations to direct employees     and managers?

3.Work Specialization
The degree to which tasks in the organization are subdivided into separate jobs.

4.Departmentalization
The basis by which jobs are grouped together.

5.Authority
The rights inherent in a managerial position to give orders and to expect the orders to be obeyed.
Chain of Command
The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.
Unity of Command
A subordinate should have only one superior to whom he or she is directly responsible.

6.Centralization
The degree to which decision making is concentrated at a single point in the organization.
Decentralization
The degree to which decision making is spread throughout the organization.
Formalization
The degree to which jobs within the organization are standardized.

7.Simple Structure
A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

8.Matrix Structure
A structure that creates dual lines of authority and combines functional and product departmentalization.

9.Team Structure
The use of teams as the central device to coordinate work activities.
Characteristics:
Breaks down departmental barriers.
Decentralizes decision making to the team level.
Requires employees to be generalists as well as specialists.
Creates a “flexible bureaucracy.”

10.Virtual Organization
A small, core organization that outsources its major business functions.
Highly centralized with little or no departmentalization.

11.Boundaryless Organization
An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.

12.Mechanistic Model
A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.
Organic Model
A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

13.Innovation Strategy A strategy that emphasizes the introduction of major new products and services.
Cost-minimization Strategy A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.
Imitation Strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven.

14.The Strategy-Structure Relationship

15.Size
How the size of an organization affects its structure. As an organization grows larger, it becomes more mechanistic.