Organizational Structure, Design & Culture

1. Organizational Structure, Design & Culture

2. Organizational Structure • How job tasks are formally divided, grouped, & coordinated • Why? • Meet goals & objectives of organization • Efficiency & effectiveness

3. Organizational Structure • 6 elements to address for a proper organizational structure • Work specialization • Departmentalization • Chain of command • Span of Control • Centralization or decentralization • Formalization

4. Organizational Structure • 1. Work specialization • Division of labor • Tasks are subdivided into separate jobs • Jobs broken into steps with multiple people doing their individual part to make the entire product • Assembly lines, McDonald’s

5. Organizational Structure • 1. Work specialization • Advantages • Used to increase productivity • Allows skill building on the job • Disadvantages • Good to a point & then diminishing returns • Boredom, absenteeism, stress, high turnover

6. Organizational Structure • 2. Departmentalization • Grouping of jobs according to (4): • Function/process • Product • Geography • Customer

7. Organizational Structure • 2. Departmentalization • Grouping of jobs according to (4): • Function/process • Northwest SRA Managers: • Inclusion, cultural arts, special events • Pocono Family YMCA

8. Organizational Structure • 2. Departmentalization • Grouping of jobs according to (4): • Product • Nike: Golf, shoes, clothing • REI: Clothing & footwear, snow gear, water gear, land gear • Geography • NRPA regions; NPS • Gametime – 18 independent U.S. Reps • NWSRA – 2 area (by city) inclusion coordinators

9. Organizational Structure • 2. Departmentalization • Grouping of jobs according to (4): • Customer • retail, wholesale, government • corporate vs. individual clients • NRPA (Aquatics, L & A, CBM, NTRS)

10. 3. Chain of command Unbroken line of authority the right to exercise influence, give directives or make certain decisions within the organization Organizational Structure

11. Organizational Structure • 3. Chain of command • Key issues • Unity of Command • 1 supervisor ee is responsible to • Seeing less chain of command with empowerment • More access to company wide info via technology • Don’t need to have your boss talk to the boss of maintenance to get the grass mowed!

12. Organizational Structure • 4. Span of Control • # of people, units, & operations a mgr can control effectively & efficiently • Small span of control – supervise smaller number of people • Larger span of control – supervise larger number of people

13. Organizational Structure • 4. Span of Control • # of people, units, & operations a mgr can control effectively & efficiently • Small span of control – supervise smaller number of people • Larger span of control – supervise larger number of people

14. Organizational Structure • 4. Span of Control • See smaller span of control at top & larger at bottom of org. • 7 is optimal but depends on work done • Which is better? Smaller or larger?

15. Organizational Structure • 4. Span of Control • Wider – fewer managers, more ee’s reporting to them • Reduces cost, speeds decision making • Get closer to the customer • Empower employees • Fewer layers of employees • Invest in training staff • Easier to supervise a lot of good staff than bad ones

16. Organizational Structure • 4. Span of Control • Smaller – more managers with fewer ee’s • Tight managerial control • Increase cost of managers • Added managers slows communication • Encourages micro-managing & discourages ee autonomy

17. Organizational Structure • 5. Centralization or decentralization • Degree to which decision making is concentrated at a single point in the organization

18. Organizational Structure • Centralization • Top managers make all the decisions • Consistency in decision making • Slow process…move up the chain of command

19. Organizational Structure • Decentralization • Decision making is pushed down to mgrs closest to the action • Quicker actions taken • More people provide input • EE’s less likely to feel alienated from decision makers • Mgrs closer to situation

20. Organizational Structure • 5. Centralization or decentralization • ???? • Which one is better? • Is there a place for both?

21. Organizational Structure • 6. Formalization • Degree to which jobs are standardized • EE has minimal discretion in how, what & when to do things • Policies are strictly followed • Explicit job descriptions • Less formalization increases freedom

22. Organizational Design Simple Structure Bureaucracy Team Based Structure Matrix Structure

23. Organizational Design • How organizational structures are arranged and incorporated • Designs change as people come & go in the organization

24. Organizational Design • Simple structure • Low degree of departmentalization, wide span of control, centralized authority, little formalization • “Flat” organization

25. Organizational Design • Simple structure • Fast, flexible, inexpensive, clear accountability • Info overload at the top • Difficult to use in a large organization

26. Organizational Design • Bureacracy • Highly standardized operating tasks achieved through specialization • Formalized rules • Tasks grouped by function • Centralized authority • Narrow span of control • Decision making follows the chain of command

27. Organizational Design • Bureacracy • Strength – ability to perform standardized activities efficiently • Functions well with less talented & less costly ee’s • Resistant to change • Close adherence to rules, minimizes decision making • Put like minds together

28. Bureaucracy

29. Organizational Design • Team Based Structures • Breaks down dept barriers • Org is more horizontal • Decentralizes decision making to team level • Requires ee’s be generalists vs. specialists • Naperville Park District

30. Organizational Design • Team Based Structures • Self managed teams • Work together to accomplish goals & obj. • Marketing team • Treatment team • Problem solving teams • Short term to solve problems

31. Groups vs. Teams

32. Organizational Design • Matrix Structure (cross functional teams) • Combines functional & product departmentalization • Assigns specialists to specific functional departments to work with interdisciplinary groups led by project leaders • Breaks unity of command concept • 2 bosses – functional dept manager & product managers

33. Home Departments: Marketing Accounting Registration Human resources Arts Events Sports Recreation Maintenance

34. Reading Org Charts • Lines show chain of command • Levels should be similar • Determine distinction between titles: • Manager, supervisor, coordinator, specialist, leader