Chap 11.

Organization design
Elements of Organizational Design
Organizing
Organizational structure: design
Organizational chart (Org Chart): organizing
Organizational design: changing
Purposes of Organizing
Divides work to be done into specific jobs and departments.
Assigns tasks and responsibilities associated with individual jobs.
Coordinates diverse organizational tasks.
Clusters jobs into units.
Establishes relationships among individuals, groups, and departments.
Establishes formal lines of authority.
Allocates and deploys organizational resources.
Organizational structure :
_not limited
_ The Five Common Forms of Departmentalization:

 Functional Departmentalization
 Geographical Departmentalization – related to Sales
 Product Departmentalization
 Process Departmentalization
 Customer Departmentalization
_ Flat organization: desirable – h
_ Standard organization: time-consuming, get loss
_ Silo Effect: only connect on the top, no line joining low donw – not enough communication in
lower level
Work specialization: dividing work activities into separate job tasks (Division of Labour)
Cross-functional team: a work team composed of individuals from various functional specialties
Chain of command: the line of authority extending from upper organizational levels to the
lowest levels, which clarifies who reports to whom
Authority: the line of authority extending from upper organizational levels to the lowest levels,
which clarifies who reports to whom
Line authority: authority that entitles a manager to direct the work of an employee
Staff authority: positions with some authority that have been created to support, assist, and
advise those holding line authority
Responsibility: the obligation or expectation to perform any assigned duties
Unity of command: the management principle that each person should report to only one
Manager
Span of control: the number of employees a manager can efficiently and effectively manage
Centralization and Decentralization:
Centralization: the degree to which decision making is concentrated at upper levels of the
organization
Decentralization: the degree to which lower-level employees provide input or actually make
Decisions
Formalization: how standardized an organization’s jobs are and the extent to which
employee behavior is guided by rules and procedures
Mechanistic organization: an organizational design that’s rigid and tightly controlled
Organic organization: an organizational design that’s highly adaptive and flexible
Matrix structure: an organizational structure that assigns specialists from different functional
departments to work on one or more projects
Project structure: an organizational structure in which employees continuously work on
projects
Boundaryless organization: an organization whose design is not defined by, or limited to, the
horizontal, vertical, or external boundaries imposed by a predefined structure
Virtual organization: an organization that consists of a small core of full-time employees and
outside specialists temporarily hired as needed to work on projects
Telecommuting: a work arrangement in which employees work at home and are linked to the
workplace by computer
Compressed workweek: a workweek where employees work longer hours per day but fewer
days per week
Flextime (or flexible work hours): a scheduling system in which employees are required to work
a specific number of hours a week but are free to vary those hours within certain limits
Job sharing: the practice of having two or more people split a full-time job
Contingent workers: temporary, freelance, or contract workers whose employment is
contingent on demand for their services.
CHAP 12. ORGANIZATION AROUND TEAMS
Stages of Group Development
1. Forming: the first stage of group development in which people join the group and then de ne
the group’s purpose, structure, and leadership
2. Storming: the second stage of group development, characterized by intragroup conflict
3. Norming: the third stage of group development, characterized by close relationships and
Cohesiveness
4.Performing: the fourth stage of group development when the group is fully functional
and works on group task
5. Adjourning: the final stage of group development for temporary groups during which
group members are concerned with wrapping up activities rather than task performance
Group Structure
Role: behavior patterns expected of someone occupying a given position in a social unit
Norms: standards or expectations that are accepted and shared by a group’s members
Conformity:
+ Groupthink: when a group exerts extensive pressure on an individual to align his or her
opinion with others’ opinions
Status systems:
+Status: a prestige grading, position, or rank within a group
Group size:
+ Social loafing: the tendency for individuals to expend less effort when working collectively
than when working individually
+ Group cohesiveness: the degree to which group members are attracted to one another and
share the group’s goals
Group Processes: Decision-Making
Advantages:

 Generate more complete information and knowledge

 Increase acceptance of a solution
 Increase legitimacy
Disadvantages:

 Take more time

 A dominant minority can unduly influence outcome; groupthink
 Individual responsibilities are ambiguous
Group Processes: Conflict Management

 Conflict: perceived incompatible differences that result in interference or opposition

 Traditional view of conflict: the view that all conflict is bad and must be avoided
 Human relations view of conflict: the view that conflict is a natural and inevitable
outcome in any group
Types of Conflict

 Task conflict: conflict over content and goals of the work

 Relationship conflict: conflict based on interpersonal relationships
 Process conflict: conflict over how work gets done
In building team skills, managers must view their role as more of being a coach and developing
team members in order to create more committed, collaborative, and inclusive teams.