Professional Documents
Culture Documents
Organizational Structure
Organizational Architecture
The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used.
SivaRamaKrishna.J (MBA Dept.) 10-2
Organizational Structure
Formal system of task and reporting relationships showing how workers use resources.
Figure 10.1
Job Design
Job Design
The process by which managers decide how to divide tasks into specific jobs. The appropriate division of labor results in an effective and efficient workforce.
Question?
What is the process of reducing the tasks each worker performs? A. Job simplification B. Job enlargement C. Job enrichment D. Job enhancement
Job Design
Job Simplification
The process of reducing the tasks each worker performs. Too much simplification and boredom results.
Job Design
Job Enlargement
Increasing the number of different tasks in a given job by changing the division of labor
Job Enrichment
Increasing the degree of responsibility a worker has over a job
Job Enrichment
1. Empowering workers to experiment to find new or better ways of doing the job 2. Encouraging workers to develop new skills 3. Allowing workers to decide how to do the work 4. Allowing workers to monitor and measure their own performance
SivaRamaKrishna.J (MBA Dept.) 10-17
Source: Adapted from J. R. Hackman and G. R. Oldham, Work Redesign (Reading, MA: Addison-Wesley, 1980).
Figure 10.2
Functional Structure
Advantages
Encourages learning from others doing similar jobs. Easy for managers to monitor and evaluate workers. Allows managers to create the set of functions they need in order to scan and monitor the competitive environment
Functional Structure
Disadvantages
Difficult for departments to communicate with others. Preoccupation with own department and losing sight of organizational goals.
Figure10.3
Divisional Structures
Divisional Structure
Managers create a series of business units to produce a specific kind of product for a specific kind of customer
Figure 10.4
Product Structure
Allows functional managers to specialize in one product area Division managers become experts in their area Removes need for direct supervision of division by corporate managers Divisional management improves the use of resources
SivaRamaKrishna.J (MBA Dept.) 10-28
Figure 10.5
Matrix Structure
Figure 10.6
Discussion Question?
Which is the most effective and efficient organizational structure? A. Matrix structure B. Divisional structure C. Market structure D. Geographic structure
Figure 10.6
Hybrid Structures
Hybrid Structure
The structure of a large organization that has many divisions and simultaneously uses many different organizational structures
Figure 10.7
SivaRamaKrishna.J (MBA Dept.) 10-40
Question?
What is the power vested in a manager to make decisions? A. Power B. Influence C. Authority D. Control
Allocating Authority
Line Manager Someone in the direct line or chain of command who has formal authority over people and resources Staff Manager Managers who are functional-area specialists that give advice to line managers.
SivaRamaKrishna.J (MBA Dept.) 10-44
Figure 10.8
Tall Organizations
Figure 10.9
Flat Organizations
Figure 10.9
SivaRamaKrishna.J (MBA Dept.) 10-49
Decentralizing Authority
Disadvantages
Teams may begin to pursue their own goals at the expense of organizational goals Can result in a lack of communication among divisions
Integrating Mechanisms
Figure 10.10
SivaRamaKrishna.J (MBA Dept.) 10-53
Organizational Culture
Organizational culture
shared set of beliefs, expectations, values, and norms that influence how members of an organization relate to one another and cooperate to achieve organizational goals
Figure 10.11
Organizational Ethics
Organizational Ethics
moral values, beliefs, and rules that establish the appropriate way for an organization and its members to deal with each other and people outside the organization
Employment Relationship
Human resource policies:
Can influence how hard employees will work to achieve the organizations goals, How attached they will be to it Whether or not they will buy into its values and norms
Organizational Structure
In a centralized organization:
people have little autonomy norms that focus on being cautious, obeying authority, and respecting traditions emerge predictability and stability are desired goals
Organizational Structure
In a flat, decentralized structure:
people have more freedom to choose and control their own activities norms that focus on being creative and courageous and taking risks appear gives rise to a culture in which innovation and flexibility are desired goals.