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Lecture Six Organizational Structure

Lecture Six Organizational Structure. Fundamental of Organizing. Organizing is the process of establishing orderly uses for all resources within the management system. Basic Types of Organizational Structure. The Simple structure The Functional Structure The Divisional Structure

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Lecture Six Organizational Structure

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  1. Lecture SixOrganizational Structure

  2. Fundamental of Organizing • Organizing is the process of establishing orderly uses for all resources within the management system.

  3. Basic Types of Organizational Structure • The Simple structure • The Functional Structure • The Divisional Structure • The Conglomerate Structure • The Hybrid Structure • The Matrix Structure • The Team-Based Structure • The Network Structure

  4. The Functional Structure • Grouping by similar work specialties

  5. The Divisional Structure • Grouping by similarity of purpose

  6. The Conglomerate Structure • Grouping by industry

  7. The Hybrid Structure • Functional & Divisional Used within the Same Organization

  8. The Matrix Structure • A Grid of Functional & Divisional for Two Chains of Command

  9. Types ofThe Matrix Structure • Weak/Functional Matrix • Balanced/Functional Matrix • Strong/Project Matrix

  10. The Team-Based Structure • Eliminating Functional Barriers to Solve Problems

  11. The Network Structure • Connecting a Central Core to Outside Firms by Computer Connections

  12. Network Structure: MySQL • Software maker • 320 workers • Located in 25 countries • 70% of workers work from home

  13. Network Structure:H&M • Not owning any factories • A network of 700 suppliers • More than two-thirds of them are in Asian countries

  14. Group Discussion • Many people like the social interaction that comes with working in a physical office with other people. Others, however, welcome the opportunity to do task-oriented work in a home office. Which would you favor, why?

  15. Factors in Creating the Best Structure • The Environment • Size • Technology • Life Cycle

  16. Mechanistic Centralized hierarchy of authority Many rules and procedures Specialized tasks Formalized communication Few teams or tasks forces Narrow span of control, taller structure Organic Decentralized hierarchy of authority Few rules and procedures Shared tasks Informal communication Many teams and task forces Wider span of control, flatter structure The Environment:Mechanistic vs. Organic

  17. The Environment:Differentiation vs. Integration • Differentiation: when forces push the organization apart • Differentiation is the tendency of the parts of an organization to disperse and fragment. • Integration: when forces pull the organization together • Integration is the tendency of the parts of an organization to draw together to achieve a common purpose.

  18. Size • The larger the organization, the more mechanistic

  19. Technology • Small-Batch Technology Custom–Made Products Made by Organic Organization

  20. Technology • Large-Batch Technology: Mass – Produced Products Made by Mechanized Organization.

  21. Technology • Continuous-Process: Highly Routinized Products Made by Organic Organization

  22. Life Cycle • Stage 1. The Birth Stage – Nonbureaucratic • Stage 2. The Youth Stage – Prebureaucratic • Stage 3. The Midlife Stage – Bureaucratic • Stage 4. The Maturity Stage – Very Bureaucratic

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