Context Lever: Structure

Two Pillars
Specialization
Coordination
Organizational Architecture
• Combination of structure, culture, control systems, HRM Systems.
Organizational Structure
• Formal system of Task and Job Reporting Relationships.
Organizational Design
• Process by which a specific organizational structure and culture is
created.
• Challenge is to motivate and coordinate.
Factors
• Environment.
• Turbulent-flexible/organic.
• Stable-conservative more formalized.
Factors
• Technology (skills, knowledge, machines, computers).
• Complicated tech (flexible).
• Routine technology (more conservative).
What determines Complexity
• Task Variety-number of new unexpected problems encountered.
• Task Analyzability-(degree to which programmed solutions are
available).
• Human Resources (skilled Teams).
• Flexibility.
How to group Tasks into Jobs: Job Design
• McDonald: Division of Labour.
• (oil in fryers, opening packages, baking patties, making salads)
• Subway: No division of labour. 
• (make wrap service take money)
Enlargement and Enrichment
•  Increase the number of different tasks in a given job.
• Subway High.
• McDonald Low.
• More responsibility over the job. 
Job Characteristics Model: Hackman And
Oldham (1980)
Score
• Task is Key to motivation.
• MPS=(SKILL VARIETY+ TASK Identity + Task Variety/
3)*Autonomy*Feedback.
• Motivating Performance Score.
Two Pillars of Structure
• Specialization.
• Coordination.
Jobs into Functions and Divisions:
Organization Structure (Specialization)
• Simple Structures.
• Owner managers.
• Predominant before the 1800’s.
• Single or narrow product line.
• Owner manager makes all decisions.
• Staff as extension of owner.
• Flexible quick to take advantage of market.
• Lack of formality. 
• No upward mobility.
Organization Structure
• Functional Structure.
• Firms begin to grow.
• Further penetrating existing markets.
• Similar products into additional markets.
• Vertical integration.
• Centralized. 
• Stable markets.
• Grouped functions work well as cross product cross market coordination not an issue.
• Communication an issue group talk.
• Control and evaluation difficult as not one standard.
Organization Structure
Organization Structure
• Divisional.
• SBU.
• GM1920’S (CADILLAC, Pontiac, Chevrolet, Buick, Oldsmobile).
• Diversify into new products markets.
• Increased complexity functions differ too much from one product to another.
• Efficient in unrelated diversification.
• Managers concentrate on their own product lines or markets access to
resources and staff.
• General managers varied experience mini CEOs.
Organization Structure
Organization Structure
• Matrix.
• Best of functional and divisional.
• Standardization vs autonomy.
Organization Structure
Second Pillar of Structure: Coordination
• Coordination syncs.
Coordination at the job level: Formalization
• Explicit rules, low discretion.
• High (simple and routine).
• Low (mutual adjustment).
Coordinating Vertically: Hierarchy
• Authority.
• Chain of command.
• Unity of command.
• Silos.
• Hierarchy limited capacity to coordinate.
• NOT DEAD YET!
Decision making in Hierarchy
• Centralized (experience and knowledge).
• Decentralized (context in-situ).
Coordinating Horizontally: Integrating
Mechanisms
• Integration: Coordination across departments.
• Integrating mechanisms: increase coordination across horizontal
boundaries.
• Hierarchy limited capacity to coordinate.
• Integrating mechanisms, a horizontal counterpart to hierarchy.
Integrating and Coordinating Mechanisms
• Centralization.
• Direct Contact.
• Liaison Roles.
   (two functions)
• Task Forces (more than two ends after problem solved).
• Cross Functional (Recurring).
• Matrix.
• https://slideplayer.com/slide/8229468/
Integrating and Coordinating Mechanisms
Relative Authority Diagram