ORGANISATIONAL

BEHAVIOUR (OB)
COURSE INSTRUCTOR
DR. SAMUEL HOWARD QUARTEY
(SENIOR LECTURER)
Email:
showard.quartey@central.edu.gh
 Week 5:
Chapter
15:Organisational
Structure & Design
Learning Objectives
At the end of this topic, students will be able to:
explain the six elements of organisational structure
and design.
identify the characteristics of bureaucracy.
describe a matrix organisation.
explain the key determinants of organisational
structure.
show why managers want to create boundaryless
organisations.
demonstrate how organisational structures differ.
contrast mechanistic and organic structural models.
analyze the behavioral implications of different
organisational designs.
 Do you think your
company’s
organogram affects the
way you behave at
your workplace? If yes,
why? And if no, why?
 Quote
“Every revolution
evaporates and leaves
behind only the slime of
a new bureaucracy”
(Franz Kafka)
Definition of
Organisational
Structure
Shows how jobs and tasks are formally divided, grouped, and
coordinated.
Organisational structure emphasizes:
Coordination
Communication
Work flow
Work relationships
Formal power, that direct organisational activities.
Structural decisions:
Produce different behaviors
Direct communication
Direct work relationships
Allocate jobs, tasks and resources
Share authority and control
Coordinate individual and group activities
Sustain organisational growth
Influence organisational effectiveness and
performance
Key Elements of
Organisational Structure
& Design
Work specialization/Division of
labour
How are tasks/activities are subdivided into separate
jobs?

Departmentalization
On what basis will jobs be grouped together?
Functions, products/services, geography/regions,
customers/markets, or process?
Chain of command
To whom do individuals and groups report to?
Authority and unity of command.

Span of control
How many individuals can a manager
efficiently and effectively direct?
Centralization/decentralization
Where does decision-making authority lie?
Top or down & single point or everywhere?
Formalization
To what degree will there be rules and
regulations to direct employees and
managers?
Standardization of jobs.
oE.g., Standard operating procedures.
Definition of
Organisational Design
The process of creating or changing
organisational structure.
Organisational design decides:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
Models of
Organisational Design
Mechanistic model
High specialization
Rigid departmentalization
Clear chain of command
Narrow span of control
High centralization
High formalization
Organic model
Cross-functional teams
Cross-hierarchical teams
Free flow of information
Wide span of control
High decentralization
Low formalization
 How many
employees do you
think a
manager/supervisor
should control and
why?
Common
Organisational
Structures
The simple structure/flat structure
Characterized by:
Low degree of departmentalization
Wide span of control
High centralization
Low formalization.
Functional structure
Characterized by:
High centralization
High departmentalization
High specialization
High formalization
High chain of command
Divisional structure
Characterized by:
Separate, self-sufficient, self-
managed and semi-autonomous
organisation
Low centralization
High flexibility and innovation
Fashioned along different products,
customers and geographical
regions.
Bureaucracy
Characterized by:
High routine operating tasks -
specialization
Narrow span of control
Decision making follows chain of
command
High formalization – more rules and
regulations
High standardization – high conformity
High centralization - centralized
authority
Matrix Structure
Characterized by:
High departmentalization – function
& product
Non-linear and multiple reporting
lines
High specialization
Low unity of command
High coordination
Temporality or permanency –
Depends on tasks
New Design Options
The virtual /modular/network
organisation
Characterized by:
High centralization
Little or no departmentalization
High in outsourcing business functions
High technology/computer-network
The boundaryless organisation
Characterized by:
Low chain of command
Limitless span of control
Low departmentalization
Low vertical and horizontal boundaries
Self-managing teams
Cross-hierarchical or functional teams
Participative decision making
360 performance appraisal system
Strategic alliances
The Leaner organisation
Characterized by:
Improved agility
Flexible and focused
Value creation orientation
Efficiency and productivity
Downsizing/layoffs
o Investment
o Communication
o Participation
o Employee assistance
Determinants of
Organisational
Structures & Designs
Organisational strategy - strategic
dimensions?
Organisational size – small or large?
Technology - routine or non-routine?
Environment & environmental uncertainty –
degree of scarcity, dynamism & complexity?
Organisational resources
Reflective Activity (1)
Examine how each of the
organisational structures
affect individual and group
behaviors?
Reflective Activity (2)
Critically assess
[advantages and
disadvantages] each of the
organisational structures.