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Chapter 10. Managing Organizational Structure and Culture. Organizational Structure. Organizational Architecture
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Chapter 10 Managing Organizational Structure and Culture
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 MGMT 321 – Chapter 10
Organizational Structure • Organizing • Establishing working relationships among employees to achieve goals. • Organizational Structure • Formal system of task and reporting relationships showing how workers use resources. • Organizational Design • Creating a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way MGMT 321 – Chapter 10
Factors Affecting Organizational Structure MGMT 321 – Chapter 10
The Organizational Environment Organization structure depends on: • How to group tasks into individual jobs • How to group jobs into functions and divisions • How to allocate authority and coordinate functions and divisions MGMT 321 – Chapter 10
Job Design • Job Design • Deciding how to divide tasks into specific jobs • Job Enlargement • Increasing the number of different tasks in a given job by changing the division of labor • Job Enrichment • Increasing the degree of a worker’s responsibility MGMT 321 – Chapter 10
The Job Characteristics Model MGMT 321 – Chapter 10
Job Characteristics Model MGMT 321 – Chapter 10
Grouping Jobs into Functions • Function • Group of people who possess similar skills to perform their jobs • Functional Structure • An organizational structure composed of all the departments that an organization requires to produce its goods or services MGMT 321 – Chapter 10
Divisional Structures • Divisional Structure • Managers create a series of business units to produce a specific kind of product for a specific kind of customer • Types of Divisional Structures • Product • Market • Geographic MGMT 321 – Chapter 10
Types of Divisional Structures MGMT 321 – Chapter 10
Matrix Structure MGMT 321 – Chapter 10
Product Team Structure MGMT 321 – Chapter 10
Federated’s Hybrid Structure MGMT 321 – Chapter 10
Allocating Authority • Hierarchy of Authority • An organization’s chain of command • Span of control • Line Manager • Staff Manager MGMT 321 – Chapter 10
Tall Organizations MGMT 321 – Chapter 10
Flat Organizations MGMT 321 – Chapter 10
Decentralization of Authority • 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 MGMT 321 – Chapter 10
Integrating Mechanisms MGMT 321 – Chapter 10
Organizational Culture MGMT 321 – Chapter 10
Adaptive and Inert Cultures • Adaptive cultures • Values and norms help an organization grow and change as needed to be effective • Inert cultures • Values and norms that fail to motivate or inspire employees • Lead to stagnation and often failure over time MGMT 321 – Chapter 10