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Structural Perspectives in Organizational Design: Achieving Efficiency and Performance

Explore the origins, forms, and functions of organizational structures, from Frederick Taylor to Max Weber. Learn about vertical and lateral coordination, basic tensions, and the impacts of structural deficiencies. Discover how structural design aligns with organizational goals and adapts to different circumstances, with examples from McDonald's and Harvard. Identify structural imperatives based on size, age, core processes, environment, information technology, and the workforce. Uncover the key factors driving structural changes in evolving environments and the importance of differentiation and integration for organizational success.

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Structural Perspectives in Organizational Design: Achieving Efficiency and Performance

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  1. Reframing Organizations, 3rd ed.

  2. Chapter 3 Getting Organized

  3. Getting Organized • Structural Assumptions • Origins of the Structural Perspective • Structural Forms and Functions • Basic Structural Tensions • Vertical Coordination - Authority - Rules and Policies - Planning and Control Systems

  4. Getting Organized (II) • Lateral Coordination - Meetings - Task Forces - Coordinating Roles - Matrix Structures - Networks - Strengths and Weaknesses of Lateral Strategies

  5. Structural Assumptions • Achieve established goals and objectives • Increase efficiency and performance via specialization and division of labor • Appropriate forms of coordination and control • Organizations work best when rationality prevails • Structure must align with circumstances • Problems arise from structural deficiencies

  6. Origins of the Structural Perspective • Frederick Taylor – Scientific Management • Efficiency, time and motion studies, etc. • Max Weber – Bureaucracy • Fixed division of labor • Hierarchy of offices • Performance rules • Separate personal and official property and rights • Personnel selected for technical qualifications • Employment as primary occupation

  7. Structural Forms and Functions • Blueprint for expectations and exchanges among internal and external players • Design options are almost infinite • Design needs to fit circumstances

  8. Basic Structural Tensions • Differentiation: dividing work, division of labor • Integration: coordinating efforts of different roles and units • Criteria for differentiation: function, time, product, customer, place, process • Suboptimization: units focus on local concerns, lose sight of big picture

  9. Vertical coordination • Authority (the boss makes the decision) • Rules and policies • Planning and control systems • Performance control (focus on results) vs. action planning (focus on process)

  10. Lateral Coordination • Meetings • Task Forces • Coordinating Roles • Matrix Structures • Networks • Strengths and Weaknesses of Lateral Strategies

  11. McDonald’s and Harvard: A Structural Odd Couple • McDonald’s: clearer goals, more centralized, tighter performance controls • Harvard: diffuse goals, highly decentralized, high autonomy for professors • Why have two successful organizations developed such different structures?

  12. Structural Imperatives • Size and Age • Core Process • Environment • Strategy and Goals • Information Technology • People: Nature of Workforce • The case of Citibank

  13. Conclusion • Structural frame – examine social context of work • Differentiation and integration • Structure depends on situation • Simpler more stable  simpler, more hierarchical and centralized structure • Changing, turbulent environments  more complex, flexible structure

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