organizational structure, design & culture. organizational structure how job tasks are formally...
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Organizational StructureOrganizational Structure
How job How job taskstasks are formally divided, are formally divided, grouped, & coordinatedgrouped, & coordinated
Why?Why?– Meet goals & objectives of organizationMeet goals & objectives of organization– Efficiency & effectivenessEfficiency & effectiveness
Organizational StructureOrganizational Structure
6 elements to address for a proper 6 elements to address for a proper organizational structureorganizational structure
1.1. Work specializationWork specialization
2.2. DepartmentalizationDepartmentalization
3.3. Chain of commandChain of command
4.4. Span of ControlSpan of Control
5.5. Centralization or decentralizationCentralization or decentralization
6.6. FormalizationFormalization
Organizational StructureOrganizational Structure
1. Work specialization1. Work specialization
– Division of laborDivision of laborTasks are subdivided into separate jobsTasks are subdivided into separate jobs
– Jobs broken into steps with multiple Jobs broken into steps with multiple people doing their individual part to people doing their individual part to make the entire productmake the entire product
– Assembly lines, McDonald’sAssembly lines, McDonald’s
Organizational StructureOrganizational Structure
1. Work specialization1. Work specialization
– AdvantagesAdvantagesUsed to increase productivityUsed to increase productivityAllows skill building on the jobAllows skill building on the job
– DisadvantagesDisadvantagesGood to a point & then diminishing returnsGood to a point & then diminishing returnsBoredom, absenteeism, stress, high turnoverBoredom, absenteeism, stress, high turnover
Organizational StructureOrganizational Structure
2. Departmentalization2. Departmentalization– Grouping of jobs according to (4): Grouping of jobs according to (4):
Function/processFunction/processProduct Product Geography Geography CustomerCustomer
Organizational StructureOrganizational Structure
2. Departmentalization2. Departmentalization– Grouping of jobs according to (4): Grouping of jobs according to (4):
Function/process Function/process
– Northwest SRA Managers:Northwest SRA Managers: Inclusion, cultural arts, special eventsInclusion, cultural arts, special events
– Pocono Family YMCAPocono Family YMCA
Organizational StructureOrganizational Structure
2. Departmentalization2. Departmentalization– Grouping of jobs according to (4): Grouping of jobs according to (4):
Product Product – Nike: Golf, shoes, clothing Nike: Golf, shoes, clothing – REI: Clothing & footwear, snow gear, water gear, REI: Clothing & footwear, snow gear, water gear,
land gearland gear
Geography Geography – NRPA regions; NPSNRPA regions; NPS– Gametime – 18 independent U.S. RepsGametime – 18 independent U.S. Reps– NWSRA – 2 area (by city) inclusion coordinatorsNWSRA – 2 area (by city) inclusion coordinators
Organizational StructureOrganizational Structure
2. Departmentalization2. Departmentalization– Grouping of jobs according to (4): Grouping of jobs according to (4):
Customer Customer – retail, wholesale, governmentretail, wholesale, government– corporate vs. individual clientscorporate vs. individual clients– NRPA (Aquatics, L & A, CBM, NTRS)NRPA (Aquatics, L & A, CBM, NTRS)
Organizational StructureOrganizational Structure
3. Chain of command3. Chain of command– Unbroken line of authorityUnbroken line of authority
the right to exercise influence, give the right to exercise influence, give directives or make certain decisions directives or make certain decisions within the organizationwithin the organization
Organizational StructureOrganizational Structure
3. Chain of command3. Chain of command– Key issuesKey issues
Unity of CommandUnity of Command– 1 supervisor ee is responsible to1 supervisor ee is responsible to
Seeing less chain of command with Seeing less chain of command with empowermentempowerment
– More access to company wide info via technologyMore access to company wide info via technology
– Don’t need to have your boss talk to the boss of Don’t need to have your boss talk to the boss of maintenance to get the grass mowed!maintenance to get the grass mowed!
Organizational StructureOrganizational Structure
4. Span of Control4. Span of Control– # of people, units, & operations a mgr # of people, units, & operations a mgr
can control effectively & efficientlycan control effectively & efficiently
– Small span of control – supervise smaller Small span of control – supervise smaller number of peoplenumber of people
– Larger span of control – supervise larger Larger span of control – supervise larger number of peoplenumber of people
Organizational StructureOrganizational Structure
4. Span of Control4. Span of Control– # of people, units, & operations a mgr # of people, units, & operations a mgr
can control effectively & efficientlycan control effectively & efficiently
– Small span of control – supervise smaller Small span of control – supervise smaller number of peoplenumber of people
– Larger span of control – supervise larger Larger span of control – supervise larger number of peoplenumber of people
Organizational StructureOrganizational Structure
4. Span of Control4. Span of Control
– See smaller span of control at top & See smaller span of control at top & larger at bottom of org.larger at bottom of org.
– 7 is optimal but depends on work done7 is optimal but depends on work done
– Which is better? Smaller or larger?Which is better? Smaller or larger?
Organizational StructureOrganizational Structure
4. Span of Control4. Span of Control– Wider – fewer managers, more ee’s Wider – fewer managers, more ee’s
reporting to themreporting to themReduces cost, speeds decision makingReduces cost, speeds decision makingGet closer to the customerGet closer to the customerEmpower employeesEmpower employeesFewer layers of employeesFewer layers of employeesInvest in training staffInvest in training staff
– Easier to supervise a lot of good staff Easier to supervise a lot of good staff than bad onesthan bad ones
Organizational StructureOrganizational Structure
4. Span of Control4. Span of Control– Smaller – more managers with fewer Smaller – more managers with fewer
ee’s ee’s Tight managerial controlTight managerial controlIncrease cost of managersIncrease cost of managersAdded managers slows Added managers slows
communicationcommunicationEncourages micro-managing & Encourages micro-managing &
discourages ee autonomydiscourages ee autonomy
Organizational StructureOrganizational Structure
5. Centralization or decentralization5. Centralization or decentralization
– Degree to which decision making is Degree to which decision making is concentrated at a single point in the concentrated at a single point in the organizationorganization
Organizational StructureOrganizational Structure
CentralizationCentralization
– Top managers make all the decisionsTop managers make all the decisions
– Consistency in decision makingConsistency in decision making
– Slow process…move up the chain of Slow process…move up the chain of commandcommand
Organizational StructureOrganizational Structure
DecentralizationDecentralization– Decision making is pushed down to mgrs Decision making is pushed down to mgrs
closest to the actionclosest to the action
– Quicker actions takenQuicker actions taken
– More people provide inputMore people provide input
– EE’s less likely to feel alienated from decision EE’s less likely to feel alienated from decision makersmakers
– Mgrs closer to situationMgrs closer to situation
Organizational StructureOrganizational Structure
5. Centralization or decentralization5. Centralization or decentralization
– ????????– Which one is better?Which one is better?– Is there a place for both?Is there a place for both?
Organizational StructureOrganizational Structure
6. Formalization6. Formalization
– Degree to which jobs are standardizedDegree to which jobs are standardized– EE has minimal discretion in how, what EE has minimal discretion in how, what
& when to do things& when to do things– Policies are strictly followedPolicies are strictly followed– Explicit job descriptionsExplicit job descriptions– Less formalization increases freedomLess formalization increases freedom
Organizational DesignOrganizational DesignSimple StructureSimple Structure
BureaucracyBureaucracyTeam Based StructureTeam Based Structure
Matrix StructureMatrix Structure
Organizational DesignOrganizational Design
How organizational structures are How organizational structures are arranged and incorporatedarranged and incorporated
Designs change as people come & go Designs change as people come & go in the organizationin the organization
Organizational DesignOrganizational Design
Simple structureSimple structure– Low degree of departmentalization, wide Low degree of departmentalization, wide
span of control, centralized authority, span of control, centralized authority, little formalizationlittle formalization
– ““Flat” organizationFlat” organization
Organizational DesignOrganizational Design
Simple structureSimple structure– Fast, flexible, inexpensive, clear Fast, flexible, inexpensive, clear
accountabilityaccountability– Info overload at the topInfo overload at the top– Difficult to use in a large organizationDifficult to use in a large organization
KNR Director
Athletic Training Faculty Exercise Physiology Faculty PETE Faculty RPA Faculty
Organizational DesignOrganizational Design
BureacracyBureacracy– Highly standardized operating tasks Highly standardized operating tasks
achieved through specializationachieved through specialization– Formalized rulesFormalized rules– Tasks grouped by functionTasks grouped by function– Centralized authorityCentralized authority– Narrow span of controlNarrow span of control– Decision making follows the chain of Decision making follows the chain of
commandcommand
Organizational DesignOrganizational Design
BureacracyBureacracy– Strength – ability to perform Strength – ability to perform
standardized activities efficientlystandardized activities efficiently– Functions well with less talented & less Functions well with less talented & less
costly ee’scostly ee’s– Resistant to changeResistant to change– Close adherence to rules, minimizes Close adherence to rules, minimizes
decision makingdecision making– Put like minds togetherPut like minds together
Organizational DesignOrganizational Design
Team Based StructuresTeam Based Structures– Breaks down dept barriersBreaks down dept barriers– Org is more horizontalOrg is more horizontal– Decentralizes decision making to team Decentralizes decision making to team
levellevel– Requires ee’s be generalists vs. Requires ee’s be generalists vs.
specialistsspecialists– Naperville Park DistrictNaperville Park District
Organizational DesignOrganizational Design
Team Based StructuresTeam Based Structures– Self managed teamsSelf managed teams
Work together to accomplish goals & obj.Work together to accomplish goals & obj.Marketing teamMarketing teamTreatment teamTreatment team
– Problem solving teamsProblem solving teamsShort term to solve problemsShort term to solve problems
Organizational DesignOrganizational Design
Matrix Structure (cross functional teams)Matrix Structure (cross functional teams)– Combines functional & product Combines functional & product
departmentalizationdepartmentalization
– Assigns specialists to specific functional Assigns specialists to specific functional departments to work with interdisciplinary departments to work with interdisciplinary groups led by project leadersgroups led by project leaders
– Breaks unity of command conceptBreaks unity of command concept 2 bosses – functional dept manager & product 2 bosses – functional dept manager & product
managersmanagers
Home Departments:
Marketing
Accounting
Registration
Human resources
Arts
Events
Sports
Recreation
Maintenance
Reading Org ChartsReading Org Charts
Lines show chain of commandLines show chain of command
Levels should be similarLevels should be similar
Determine distinction between titles:Determine distinction between titles:– Manager, supervisor, coordinator, Manager, supervisor, coordinator,
specialist, leaderspecialist, leader
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