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BOH4MO Management Leadership. Chapter 11 Organizational Design & Work Processes. Organizational Design Essentials Section Overview. What is organizational design? Organizational Effectiveness Design Choices. Organizational Design Essentials What is organizational design?.
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BOH4MOManagement Leadership Chapter 11 Organizational Design & Work Processes
Organizational Design EssentialsSection Overview • What is organizational design? • Organizational Effectiveness • Design Choices
Organizational Design EssentialsWhat is organizational design? • …the process of creating and implementing structures that accomplish organizational objectives • Structures: • Environment • People • Size • Strategy • Technology • A problem solving process • Find the best structure to meet the unique needs of each situation
Organizational Design EssentialsOrganizational Effectiveness • …sustainable high performance in using resources to accomplish objectives. • Many approaches • Many perspectives • Are we getting as much as we can at the best possible quality out of our people and input resources? • All about choices and combinations
Organizational Design EssentialsDesign Choices • Bureaucracy-formal authority, fairness and efficiency • Clear division of labour • Formal rules and procedures • Strict hierarchy of authority • Many negative connotations and drawbacks • Old school, has split into two directions in today’s work environment
Organizational Design EssentialsDesign Choices • Mechanistic Design…centralized with many rules and procedures, a clear cut division of labour, narrow spans of control and formal coordination
Organizational Design EssentialsDesign Choices • Organic Design…decentralized with fewer rules and procedures, open divisions of labour, wide spans of control and more personal coordination • AKA Adaptive Organization…one that operates with a minimum of bureaucratic features and encourages worker empowerment and teamwork.