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Organizational

Structure, Design &


Culture

Organizational Structure

How job tasks are formally divided,


grouped, & coordinated

Why?

Meet goals & objectives of organization


Efficiency & effectiveness

Organizational Structure

6 elements to address for a proper


organizational structure
1.
2.
3.
4.
5.
6.

Work specialization
Departmentalization
Chain of command
Span of Control
Centralization or decentralization
Formalization

Organizational Structure
1.

Work specialization

Division of labor
Tasks

are subdivided into separate jobs

Jobs broken into steps with multiple


people doing their individual part to
make the entire product
Assembly lines, McDonalds

Organizational Structure
1.

Work specialization

Advantages
Used

to increase productivity
Allows skill building on the job

Disadvantages
Good

to a point & then diminishing returns


Boredom, absenteeism, stress, high
turnover

Organizational Structure
2.

Departmentalization

Grouping of jobs according to (4):


Function/process
Product
Geography
Customer

Organizational Structure
2.

Departmentalization

Grouping of jobs according to (4):


Function/process

Northwest SRA Managers:


Inclusion, cultural arts, special events
Pocono Family YMCA

Organizational Structure
2.

Departmentalization

Grouping of jobs according to (4):


Product

Nike: Golf, shoes, clothing


REI: Clothing & footwear, snow gear, water gear,
land gear
Geography

NRPA regions; NPS


Gametime 18 independent U.S. Reps
NWSRA 2 area (by city) inclusion coordinators

Organizational Structure
2.

Departmentalization

Grouping of jobs according to (4):


Customer

retail, wholesale, government


corporate vs. individual clients
NRPA (Aquatics, L & A, CBM, NTRS)

Organizational Structure
3.

Chain of command

Unbroken line of authority


the

right to exercise influence, give


directives or make certain decisions
within the organization

Organizational Structure
3.

Chain of command

Key issues
Unity of Command
1 supervisor ee is responsible to
Seeing

less chain of command with


empowerment
More access to company wide info via technology
Dont need to have your boss talk to the boss of
maintenance to get the grass mowed!

Organizational Structure
4.

Span of Control

# of people, units, & operations a mgr


can control effectively & efficiently
Small span of control supervise
smaller number of people
Larger span of control supervise larger
number of people

Organizational Structure
4.

Span of Control

# of people, units, & operations a mgr


can control effectively & efficiently
Small span of control supervise
smaller number of people
Larger span of control supervise larger
number of people

Organizational Structure
4.

Span of Control

See smaller span of control at top &


larger at bottom of org.
7 is optimal but depends on work done
Which is better? Smaller or larger?

Organizational Structure
4.

Span of Control

Wider fewer managers, more ees


reporting to them
Reduces cost, speeds decision making
Get closer to the customer
Empower employees
Fewer layers of employees
Invest in training staff
Easier to supervise a lot of good staff
than bad ones

Organizational Structure
4.

Span of Control

Smaller more managers with fewer


ees
Tight managerial control
Increase cost of managers
Added managers slows
communication
Encourages micro-managing &
discourages ee autonomy

Organizational Structure
5.

Centralization or decentralization

Degree to which decision making is


concentrated at a single point in the
organization

Organizational Structure
Centralization

Top managers make all the decisions


Consistency in decision making
Slow processmove up the chain of
command

Organizational Structure

Decentralization
Decision making is pushed down to mgrs closest
to the action
Quicker actions taken
More people provide input
EEs less likely to feel alienated from decision
makers
Mgrs closer to situation

Organizational Structure
5.

Centralization or decentralization

????
Which one is better?
Is there a place for both?

Organizational Structure
6.

Formalization

Degree to which jobs are standardized


EE has minimal discretion in how, what
& when to do things
Policies are strictly followed
Explicit job descriptions
Less formalization increases freedom

Organizational Design
Simple Structure
Bureaucracy
Team Based Structure
Matrix Structure

Organizational Design
How

organizational structures are


arranged and incorporated

Designs

change as people come & go


in the organization

Organizational Design
Simple

structure

Low degree of departmentalization, wide


span of control, centralized authority,
little formalization
Flat organization

Organizational Design
Simple

structure

Fast, flexible, inexpensive, clear


accountability
Info overload at the top
Difficult to use in a large organization
KNR Director

Athletic Training Faculty

Exercise Physiology Faculty

PETE Faculty

RPA Faculty

Organizational Design
Bureacracy

Highly standardized operating tasks


achieved through specialization
Formalized rules
Tasks grouped by function
Centralized authority
Narrow span of control
Decision making follows the chain of
command

Organizational Design
Bureacracy

Strength ability to perform


standardized activities efficiently
Functions well with less talented & less
costly ees
Resistant to change
Close adherence to rules, minimizes
decision making
Put like minds together

Bureaucracy

Organizational Design
Team

Based Structures

Breaks down dept barriers


Org is more horizontal
Decentralizes decision making to team
level
Requires ees be generalists vs.
specialists
Naperville Park District

Organizational Design
Team

Based Structures

Self managed teams


Work

together to accomplish goals & obj.


Marketing team
Treatment team

Problem solving teams


Short

term to solve problems

Groups vs. Teams

Organizational Design

Matrix Structure (cross functional teams)


Combines functional & product
departmentalization
Assigns specialists to specific functional
departments to work with interdisciplinary
groups led by project leaders
Breaks unity of command concept
2

bosses functional dept manager & product


managers

Home
Departments:
Marketing
Accounting
Registration
Human resources
Arts
Events
Sports
Recreation
Maintenance

Reading Org Charts


Lines

show chain of command

Levels

should be similar

Determine

distinction between titles:

Manager, supervisor, coordinator,


specialist, leader