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CHAPTER ORGANIZATIONAL
6 STRUCTURE AND
DESIGN
LEARNING OUTCOMES
After reading this chapter students should be able to:
1. Describe 6 key elements in organizational design.
2. Identify the contingency factors that favor the mechanistic model or the organic model.
3. Compare and contrast traditional and contemporary organizational designs.
4. Discuss the design challenges faced by today’s organizations.
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Right or Wrong
You hear it in the news every week, a hacker (or hackers) has gained access to personal data
of thousands of customers or employees. In the dilemma described here, a security hole in an
AT&T website allowed Goatse Security, a group of computer security experts, to retrieve the
email addresses for thousands of new iPad users. The head of Goatse Security pointed out
they were doing AT&T a favor by identifying the problem. On the other hand, the information
released by Goatse could have helped hackers break into AT&T’s website.
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2. Such arrangements not only exploit the power of technology, but give organizations
the flexibility to deploy employees when and where needed.
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a) Telecommute provides the company a way to grow without having to incur any
additional fixed costs such as office buildings, equipment, or parking lots.
b) Some companies view the arrangement as a way to combat high gas prices
and to attract talented employees who want more freedom and control.
c) Some managers are reluctant to have their employees become “laptop hobos”
wasting time surfing the Internet or playing online games instead of working.
b) Job sharing—the practice of having two or more people split a full-time job.
b) One of the main issues businesses face with their contingent workers,
especially those who are independent contractors or freelancers, is classifying
who actually qualifies as one.
c) Another issue with contingent workers is the process for recruiting, screening,
and placing these contingent workers where their work skills and efforts are
needed.
Teaching Notes
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Answer: Traditionally, work specialization was viewed as a way to divide work activities into
separate job tasks. Today’s view is that it is an important organizing mechanism but it can
lead to problems. The chain of command and its companion concepts—authority,
responsibility, and unity of command—were viewed as important ways of maintaining control
in organizations. The contemporary view is that they are less relevant in today’s
organizations. The traditional view of span of control was that managers should directly
supervise no more than five to six individuals. The contemporary view is that the span of
control depends on the skills and abilities of the manager and the employees and on the
characteristics of the situation.
Answer: An organization’s structure should support the strategy. If the strategy changes the
structure also should change. An organization’s size can affect its structure up to a certain
point. Once an organization reaches a certain size (usually around 2,000 employees), it’s
fairly mechanistic. An organization’s technology can affect its structure. An organic structure
is most effective with unit production and process production technology. A mechanistic
structure is most effective with mass production technology. The more uncertain an
organization’s environment, the more it needs the flexibility of an organic design.
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Answer: Although an organization’s work may be done anywhere at any time, organizing
remains a vital managerial function because the work that must be accomplished still must
be divided, grouped, and coordinated. Regardless of where employees work, there are
basic managerial functions that must be served, such as scheduling of work, setting goals,
and maintaining employee morale.
8. Researchers are now saying that efforts to simplify work tasks actually have negative
results for both companies and their employees. Do you agree? Why or why not?
Answer: Student responses may vary based on their respective opinion. Simplifying tasks
may result in monotony and boredom, even turnover. The 21st century workforce is smarter,
more independent, better educated and more trustworthy employees, so they will demand
more challenging work. They will work with more individual authority and less direct
supervision.
9. The boundaryless organization has the potential to create a major shift in the way we
work. Do you agree or disagree? Explain.
Answer: Students’ responses to this will vary with most students focusing on the topics of
flexibility at work. Some organizations that adopt a boundaryless design also implement
flextime and flexplace work arrangements for their employees. This question could serve as
an interesting springboard for a class debate. Students could break into teams, with each
team taking the opposite position in the debate. Give students an opportunity to discuss
their strategy as a team before presenting their viewpoints to the class.
10. Draw an organization chart of an organization with which you’re familiar (where you
work, a student organization to which you belong, your college or university, etc.). Be
very careful in showing the departments (or groups) and especially be careful to get
the chain of command correct. Be prepared to share your chart with the class.
Answer: Student answers will depend on the organization that they choose.
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