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ORGANIZATIONAL STRUCTURE AND DESIGN

Lecture 15. ORGANIZATIONAL STRUCTURE AND DESIGN. Three perspectives on determinism. Technological determinism Environmental determinism. Managerial choice. Weber and bureaucracy. Charismatic Traditional Rational-legal. Gouldner and bureaucracy.

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ORGANIZATIONAL STRUCTURE AND DESIGN

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  1. Lecture 15 ORGANIZATIONAL STRUCTURE AND DESIGN

  2. Three perspectives on determinism Technological determinism Environmental determinism Managerial choice

  3. Weber and bureaucracy Charismatic Traditional Rational-legal

  4. Gouldner and bureaucracy Gouldner (1954) suggested three types of bureaucracy: Mock Punishment Representative

  5. Fayol and classical management The operations necessary to run a company: • Technical • Commercial • Financial • Security • Accounting • Managerial

  6. Foucault - power and control through structure Enclosure Partitioning Ranking

  7. Structure as theatre Bolman and Deal (1994) ‘An arrangement of space, lighting, props and costumes to make the organizational drama vivid and credible to its audience’

  8. Giddens and structuration theory The constantly repeated patterns of interaction (or lack of it) that form the basis of the feeling that structure is certain and enduring An inbuilt contradiction with this approach

  9. Contingency model of an organization • The Aston studies: • Change and complexity • Institutional arrangements • Multiple perspectives

  10. An open systems view of structure

  11. Organizational lifecycle • Quinn and Cameron (1983) • Entrepreneurial phase • Collectivity phase • Formalization phase • Elaboration phase • Katz and Kahn, and Cameron et al • Organizational decline • Whetten (1980) identified four response options to decline • Generating • Reacting • Defending • Preventing

  12. Structural frameworks • Most important decision areas that can influence the design of an organization: • Formalization • Job design • Height • Orientation • Centralization • Co-ordination

  13. Entrepreneurial structures

  14. Product based structures • Product focus • Single head • Limited autonomy • Advantages • Risk • Evaluation • Motivation and development • Support • Acquisition and divestment • Change • Disadvantages • Responsibility • Conflict • Short-term perspective • Relative size • Customer confusion

  15. Process based structures Add Figure 15.12 here • Advantages: • Specialization • Stability • Centralization • Clarity • Disadvantages: • Co-ordination • Budget orientation • Succession • Growth • Political

  16. International activity – forms of: • Exporting • Agents • Licensing • Franchising • Direct investment • Multinational enterprise

  17. International organizations Ways in which international activities can be incorporated into the organization: International division

  18. International organizations

  19. International organizations Geographic business units

  20. International organizations Functional operations

  21. The holding company • Problems: • Support • Risk • Part-owned • Cohesion • Restrictions • Characteristics: • Objectives • Market • Motivation • Funding

  22. Matrix and project-based structures Difficulties with matrix structure: Complexity of operation Split accountabilities Lack of clear focus Split responsibilities Increased political opportunity Requires specific skills Conversion

  23. The flexible firm Atkinson (1984) Numerical flexibility Functional flexibility Financial flexibility

  24. Horizontal structures Flat hierarchy Process organization Team activity

  25. The virtual, federal and networked organization • A metaphor for an organization that appears to be larger and capable of producing • more than its resources would allow • A temporary network of independent organizations for a specific purpose • Key lessons: • Marry well • Play fair • Offer the best • Define objectives • Common infrastructure • Federal organization reflects the joining together of separate groups under a common • identity for a specific purpose

  26. Alternative organizations Shamrock and triple I organizations • Triple I: • Intelligence • Information • Ideas

  27. Alternative organizations • The human service organization • The co-operative and kibbutz

  28. Factors influencing organization design • There are a number of departments, functions, activities or components to be fitted together within a framework • Integration processes are needed to support a particular organizational design • Mintzberg’s structural components: • Senior management • Middle management • Functional core employees • Technical support staff • Administrative support staff

  29. Factors influencing organization design • Handy (1993) - categories of organizational activity • Policy • Innovation • Steady state • Crisis • Child (1988) - six components • Task • Reporting relationships • Clustering • Procedures • Delegation • Motivation

  30. Charting organizations A means by which organizations can describe the structure and reporting relationships There are severe limitations in the ability of the organization chart to reflect what actually happens within the organization

  31. Charting organizations There are other ways of reflecting how an organization functions Rich picture Influence diagram

  32. Organizational design: an applied perspective

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