Organizational Structure Communication in Organizations Prof. Dr. Jürgen Beneke SoSe 2003 Laura Hofman Miquel Hanna Bars

1. Organizational StructureCommunication in OrganizationsProf. Dr. Jürgen BenekeSoSe 2003Laura Hofman MiquelHanna Barst Jörg Petzold

2. To organizational effectiveness and quality of working life contribute: • Individual factors • group factors • process factors • management factors • structural factors Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

3. Interest of social scientists people’s attitude and behaviour are shaped  • by the structure of the company • by the personalities that they possess The demands of the job can dictate their behaviour and even change their personalities. Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

4. The intention of organization structure is : • to divide up organizational activities and allocate them to subunits • to co-ordinate and control these activities so that they achieve the aims of the organization. Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

5. Organization structure refers to the formal system of task and reporting relationships that controls, co-ordinates and motivates employees so that they work together to achieve organizational goals. • “Organization structure is more than boxes on a chart; it is a pattern of interactions and co-ordination that links the technology, tasks and human components of the organization to ensure that the organization accomplishes its purpose.” (Robert Duncan) [Buchanan, 2000, p. 447 ff.] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

6. Chief executive Top management Senior executives department or division heads Middle Management Superintendents General foremen Supervisory management First-line supervisors workers [Buchanan, 2000, p. 449] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

7. Five main aspects of organization structure • Specialization • Hierarchy • Grouping • Integration • Control Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

8. Specialization Job definition is determining the task requirements of each job in the organization. It is the first decision in the process of organizing. [Buchanan, 2000, p. 450] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

9. Flat organization structure Level 1 2 3 Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

10. Tall organization structure Level 1 2 3 4 5 Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

11. Span of control Span of control is the number of subordinates who report directly to a single manager or supervisor and for whose work that person is responsible. [Buchanan, 2000, p. 454] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

12. Departmentalization Departmentalization refers to the process of grouping together employees who share a common supervisor and resources, who are jointly responsible for performance, and who tend to identify and collaborate with each other. [Buchanan, 2000, p. 464] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

13. Integration Integration is the required level to which units in an organization are linked together, and their respective degree of independence. Integrative mechanisms include rules and procedures and direct managerial control. [Buchanan, 2000, p. 517] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

14. Centralization Centralization refers to the concentration of authority and responsibility for decision-making in the hands of managers at the top of an organization’s hierarchy. [Buchanan, 2000, p. 475] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

15. Decentralization Decentralization refers to authority and responsibility for decision making being dispersed more widely downwards and given to the operating units, branches and lower-level managers. [Buchanan, 2000, p. 475] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

16. Line Structure • Functional: grouping according to function • Divisional: grouping according to products • Geographic: grouping according to geographic market • Hybrid: functional and divisional grouping Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

17. Vice President Vice President Assistent Line President President R&D President Mfg President Acct Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

18. Functional Line President Marketing Mfg Acct Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

19. Divisional Line President Cars Trucks Busses Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

20. CEO Europe Asia USA Geographic Line Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

21. Functional vs. Divisional • Functional emphasis vs. product emphasis • Economy of scale vs. ability to react to changes in the market • Innovation vs. Integration and standardization Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

22. Line And Staff Structure (I) • Modification of the line structure • Specialists support line managers • Staff departments performs tasks through line structure (= functional power) • Staff departments do not possess disciplinary power Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

23. President Legal Office Marketing Market Research Mfg Com- puting Acct Line And Staff Structure (II) Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

24. Matrix • simultaneous functional and divisional structure • Two-boss-employees • coordination of matrix bosses needed • highly flexible Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

25. Matrix Structure President Director of Product Operations Design Vice President Manufacturing Vice President Marketing Vice President Product Manger A Product Manger B Product Manger C [Draft, 1998,p.225] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

26. Advantages • Sharing of human resources across products • Meets both demands of enviroment:innovation and product quality • Opportunity for functional and product skill development Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

27. Disadvantages • Dual authority can be frustrating and confusing for employee • Employees need interpersonal skills and training • Time-consuming coordination needed • Dual pressure for power balance needed Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

28. Example: University President VP Finace & Administration VP Research & Lecturing VP Student Matters VP Planning Language Department Economics Department English Marketing Prof. A Prof. C Prof. B Prof. D French Accounting Director Undergraduate Programme Director Masters Programme Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

29. Organigraphs (I) • Developed by Mintzberg and van der Heyden • Organization chart does not provide sufficient information • Add ‘sets’, ‘Chains’, ‘hubs’ and ‘web’ to organization charts Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

30. Organigraphs (II) Set Chain Hub Web [Buchanan, 2000, p. 468] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

31. 5. Formal and informal organization structure Formal organization refers to the collection of work groups that have been consciously designed by senior management to maximize efficiency and achieve organizational goals. [Buchanan, 2000, p. 462] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

32. formal organization public relations job evaluation safety Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold [Buchanan, 2000, p. 463]

33. Informal organization • refers to the network of relationships that spontaneously establish themselves between members of the organization on the basis of their common interests and friendships. [Buchanan, 2000, p. 462] Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

34. informal organization Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold [Buchanan, 2000, p. 463]

35. The formal and informal organization Formal organization Informal organization A structure (a) origin planned spontaneous (b) rational rational emotional (c) characteristics stable dynamic B position terminology job role C goals profitability or service to society member satisfaction D charting organizational chart sociogram Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

36. 6. Organization structures by Mintzberg major contribution to two topics in the field of organization behaviour: • different forms that an organization’s structure can take • range of roles performed by managers Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

37. Forms of organization structure • strategic apex • middle line • operating core • technostructure • support staff • ways in which these parts could be co-ordinated • five parts and five co-ordinating mechanisms to describe five different “ideal” types of organization structure Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

38. 1. strategic apex • contains those individuals who direct the organization • senior management Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

39. 2. Operating core • those who receive inputs and transform them into the products or services • Functional core employees • the heart of every organization Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

40. 3. Middle line • middle managers and supervisors • between the strategic apex at the top and the operating core at the bottom Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

41. 4. Technostructure • Technical support staff • analysts and technical advisers 5. Staff support individuals who provide administrative and clerical support for the different levels Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold

42. Literatur • Banner, David; Gagné, Elaine (1995): Designing effective organizations. Traditional & transformational views. London et al : Sage Publications. • Bleicher, Knut (1991): Organisation : Strategien - Strukture - Kulturen. Wiesbaden : Gabler. • Buchanan, David; Huczynski, Andrzej (2000): Organizational Behaviour. An introductory text. London : Prentice Hall. • Draft, Richard (1998): Organization theory and design. Cincinatti : South-Western College Publishing. • Theis, Anna Maria (1994): Organisationskommunikation. Theoretische Grundlagen und empirische Forschungen. Opladen: Westdeutscher Verlag. Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold