Fundamentals of Structure

Internal Design Elements

Work Design and Technology

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Important Concepts in Organization Structures

• Differentiation
• Technology, Interdependence and structure
(Thompson, Perrow, Woodworth)
• Integration through various Coordination
mechanisms
• Structure and process (informal organization)
• Hierarchy and bureaucracy
• Cost of structure (overhead)

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 Mechanisms for Horizontal Linkage and Coordination

Coordination Required
Amount of Horizontal

H
Teams
Full-time Integrators
Task Forces
Direct Contact (Liaison)
Information Systems
L

L
Cost of Coordination in
Time and Human Resources 3
 Relationship of Structure to Organization’s Needs
Functional with
Functional cross-functional Divisional Matrix Horizontal
Structure teams, integrators Structure Structure Structure

Horizontal:
• Organic
• Responsive
• Coordination
Vertical: • Change
Dominant
• Mechanistic • Learning
Structural
• Control • Innovation
Approach
• Efficiency • Flexibility
• Stability
• Reliability

Simple / Complex /
Stable / Unstable /
Analyzable Unanalyzable 4
 Woodworth classification (Core Technology)

Group I Small-batch and unit Organic with personal

production (defence,
customized or luxury
products)
Group II Large-batch and mass
production (standard
outputs, limited variety or
customization)
Group III Continuous process
production (refineries,
chemical plants)
supervision used to
control
Mechanistic with both
impersonal controls and
personal supervision
Organic with impersonal
control of process

Impact of modern technology on production

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 Woodworth classification
Structural Characteristics Unit Mass Continuous
No. Management levels 3 4 6
Span of control 23 48 15
Direct/indirect labor ratio 9:1 4:1 1:1
Managers/total personnel ratio Low Medium High
Worker skill level High Low High
Formalization Low High Low
Centralization Low High Low
Verbal communication High Low High
Written communication Low High Low
Overall structure Organic Mechan Organic
istic
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 Impact of Flexible Manufacturing Technology

Customized
Small Flexible Mass
Batch Manufacturing Customization
Product Flexibility

Mass
Production

Continuous
Standardized

Small Batch Size Unlimited

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 Framework for Departmental Technology
Low Variety High

CRAFT / SPECIALITY NONROUTINE

Low

Performing Arts Strategic Planning

Trades Research
High Analyzability

Fine Goods Manufacturing

ROUTINE ENGINEERING

Sales Legal
Clerical Engineering
Drafting Tax Accounting
Auditing General Accounting

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 Framework for Technology and Organizing
Low Variety
CRAFT / SPECIALITY
Mostly Organic Processes
1. Moderate formalization
High Analyzability Low
2. Moderate centralization
3. Work experience
4. Moderate to wide span
5. Horizontal, verbal
communications
ROUTINE
Mechanistic Processes
1. High formalization
2. High centralization
3. Little training or experience
4. Wide span
5. Vertical, written
communications
High
NONROUTINE
Organic Processes
1. Low formalization
2. Low centralization
3. Training plus experience
4. Moderate to narrow span
5. Horizontal communications
meetings
ENGINEERING
Mostly Mechanistic Processes
1. Moderate formalization
2. Moderate centralization
3. Formal training
4. Moderate span
5. Written and verbal
communications
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 Routine and Non-routine Technologies

Certain Technology Uncertain Technology

7% R&D 93%

62% Sales 38%

64% Finance/Admin 36%

92% Production 8%

55% Overall 45%

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Interdependence and Technology (Interdepartmental) (Thompson)

1. Reciprocal Interdependence – Intensive

technology – variety of customized products and
services, e.g., hospitals, research, consulting

2. Sequential interdependence – Long-linked

technology – sequential combination of successive
stages of production, e.g., assembly line production

3. Pooled Interdependence - Mediating technology –

link customers and suppliers of services, e.g., banks,
brokers, real estate
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 Interdependence and Coordination in Organizations
INTERDEPENDENCE COORDINATION

Reciprocal High Horizontal structure,

(new product development)
cross-functional teams
Mutual
Adjustment
Face-to-face communication,
Unscheduled meetings,
Full-time integrators

Sequential Scheduled meetings,

(product manufacture) task forces Direct
Supervision

Vertical communication Standardization

Plans Process,
Pooled Outputs,
(product delivery) Rules Skills

Low
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 Interdependence and Organizational Structure
Demands on Priority for
Form of Horizontal Type of Coordination Locating
Interdependence Communications, Required Units Close
Decision Making Together

Reciprocal (hospital) Mutual adjustment,

High cross-departmental
meetings, teamwork
communication High
Client

Horizontal Structure
Sequential Direct Supervision,
(assembly line) Medium Plans, schedules,
communication feedback, task forces Medium
Client

Functional Structure
Pooled (bank) Standardization,
Low rules, procedures
communication Low
Client Divisional Structure
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 Socio – Technical Systems Model
The Social System The Technical System

• Individual and • Type of production

team behaviors Design for technology (small batch,
Joint Optimization mass production, CIM,
• Organizational/ etc.)
team culture
• Level of interdependence
• Management Work roles, tasks, (pooled, sequential,
practices workflow reciprocal)

• Leadership style Goals and values • Physical work setting

• Degree of Skills and abilities • Complexity of production

communication process (variety and
and openness analyzability)

• Individual needs • Nature of raw materials

and desires
• Time pressure
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 Mechanistic and Organic Processes
Mechanistic
1. Outputs are broken down
into specialized, separate
tasks.
2. Tasks are defined.
3. There is a strict hierarchy of
authority and control
4. Rule based Organization.
5. Knowledge and control of
tasks are centralized at the
top of the organization.
6. Communication is vertical
and unidirectional.
Organic
1. Employees contribute to the
common output of the
department.
2. Roles are defined.
3. Hierarchy is diffused, task
and competency based.
4. Rules as guidelines.
5. Knowledge and control of
tasks decentralized and
located at the level where
information and competency
exits to execute the task.
6. Communication is
multidirectional.
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 Technology and Job Design

• Job design – assignment of goals and tasks to be

accomplished by employees

• Job rotation – rotating employees across various jobs

• Job simplification – variety and difficulty of tasks

performed by a single person are reduced

• Job enrichment – job provides greater responsibility,

recognition, opportunities for growth and development

• Job enlargement – expansion of number of different

tasks performed by an employee

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 Technology and Job Design

• Skill Variety – number of different skills required

• Task identity – degree to which whole job done

• Task Significance – impact on other people

• Autonomy – discretion or decision latitude

• Feedback – internal or external to the job

• Social Interaction – opportunities to interact with

others

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