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Foundations of Organization Structure

14-2. After studying this chapter, you should be able to:. Identify the six key elements that define an organization's structureExplain the characteristics of a bureaucracyDescribe a matrix organizationExplain the characteristics of a virtual organizationSummarize why managers want to create bou

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Foundations of Organization Structure

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    1. 14-1 Foundations of Organization Structure Chapter 14

    2. 14-2 After studying this chapter, you should be able to: Identify the six key elements that define an organization’s structure Explain the characteristics of a bureaucracy Describe a matrix organization Explain the characteristics of a virtual organization Summarize why managers want to create boundaryless organizations Contrast mechanistic and organic structural models List the factors that favor different organization structures Explain the behavioral implications of different organization structures

    3. 14-3 Organization Structure Defines how job tasks are formally divided, grouped, and coordinated Key elements to be addressed: Work specialization Departmentalization Chain of command Span of control Centralization Decentralization Formalization

    4. 14-4 Work Specialization Division of labor Describes the degree to which activities in the organization are subdivided into separate jobs Creates problems when carried too far

    5. 14-5 Departmentalization Basis by which jobs are grouped together Function Product Geography Process Customer

    6. 14-6 Chain of Command Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom Authority Unity of Command principle Fewer organizations find this is effective

    7. 14-7 Span of control Determines the number of levels and managers an organization has Trend in recent years has been toward wider spans of control Wider span depends on employees knowing their jobs well

    8. 14-8 Centralization and Decentralization Centralization - degree to which decision making is concentrated at a single point in the organization Highly centralized is when top managers make all the decisions More decentralized is when front line employees and managers make decisions

    9. 14-9 Formalization Degree to which jobs within the organization are standardized

    10. 14-10 Common Organizational Designs Simple structure Bureaucracy Matrix structure

    11. 14-11 Simple Structure Low degree of departmentalization Wide spans of control Authority centralized in a single person Little formalization Difficult to maintain in anything other than small organizations

    12. 14-12 Bureaucracy Highly routine operating tasks achieved through specialization Formalized rules and regulations Tasks that are grouped into functional departments Centralized authority Narrow spans of control Decision making that follows the chain of command

    13. 14-13 Matrix Structure Combines two forms of departmentalization Functional Product Dual chain of command Advantages: facilitates coordination and efficient allocation of specialists Disadvantages: possible confusion, fosters power struggles, increased stress

    14. 14-14 Matrix Structure for a College of Business Administration

    15. 14-15 New Options The Team Structure The Virtual Organization – a small core organization that outsources major business functions The Boundaryless Organization – eliminates the chain of command, has limitless spans of control, replace departments with empowered teams

    16. 14-16 Mechanistic versus Organic Structures

    17. 14-17 Determinants of Organization Structure Strategy Dimensions: Innovation Strategy Cost-Minimization Strategy Imitation Strategy Organization Size Technology Environmental Uncertainty

    18. 14-18 Organizational Structure and Employee Behavior Consider employee preferences for: Work Specialization Span of Control Centralization

    19. 14-19 Implications for Managers Structural relationships impact attitude and behavior Structure constrains employees

    20. 14-20 Summary Identified the six key elements that define an organization’s structure Explained the characteristics of a bureaucracy Described a matrix organization Explained the characteristics of a virtual organization Summarized why managers want to create boundaryless organizations Contrasted mechanistic and organic structural models Listed the factors that favor different organization structures Explained the behavioral implications of different organization structures

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