robbins eob9 inst_ppt_14
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14-1
Foundations ofOrganization Structure
Chapter 14
Essentials of Organizational Behavior, 9/e
Stephen P. Robbins/Timothy A. Judge
14-2
After studying this chapter, you should be able to:
1. Identify the six key elements that define an organization’s structure
2. Explain the characteristics of a bureaucracy3. Describe a matrix organization4. Explain the characteristics of a virtual organization5. Summarize why managers want to create boundaryless
organizations6. Contrast mechanistic and organic structural models7. List the factors that favor different organization
structures8. Explain the behavioral implications of different
organization structures
14-3
Organization Structure
• Defines how job tasks are formally divided, grouped, and coordinated
• Key elements to be addressed: Work specialization Departmentalization Chain of command Span of control Centralization Decentralization Formalization
14-4
Work Specialization
• Division of labor
• Describes the degree to which activities in the organization are subdivided into separate jobs
• Creates problems when carried too far
14-5
Departmentalization
• Basis by which jobs are grouped together Function Product Geography Process Customer
14-6
Chain of Command
• Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom
• Authority
• Unity of Command principle
• Fewer organizations find this is effective
14-7
Span of control
• Determines the number of levels and managers an organization has
• Trend in recent years has been toward wider spans of control
• Wider span depends on employees knowing their jobs well
14-8
Centralization and Decentralization
• Centralization - degree to which decision making is concentrated at a single point in the organization
• Highly centralized is when top managers make all the decisions
• More decentralized is when front line employees and managers make decisions
14-9
Formalization
• Degree to which jobs within the organization are standardized
14-10
Common Organizational Designs
• Simple structure
• Bureaucracy
• Matrix structure
14-11
Simple Structure
• Low degree of departmentalization
• Wide spans of control
• Authority centralized in a single person
• Little formalization
• Difficult to maintain in anything other than small organizations
14-12
Bureaucracy
• Highly routine operating tasks achieved through specialization
• Formalized rules and regulations• Tasks that are grouped into functional
departments• Centralized authority• Narrow spans of control• Decision making that follows the chain of
command
14-13
Matrix Structure
• Combines two forms of departmentalization Functional Product
• Dual chain of command• Advantages: facilitates coordination and
efficient allocation of specialists• Disadvantages: possible confusion, fosters
power struggles, increased stress
14-14
Matrix Structure for a Collegeof Business Administration
14-15
New Options
• The Team Structure• The Virtual Organization – a small core
organization that outsources major business functions
• The Boundaryless Organization – eliminates the chain of command, has limitless spans of control, replace departments with empowered teams
14-16
Mechanistic versus Organic Structures
14-17
Determinants of Organization Structure
• Strategy Dimensions: Innovation Strategy Cost-Minimization Strategy Imitation Strategy
• Organization Size
• Technology
• Environmental Uncertainty
14-18
Organizational Structure and Employee Behavior
• Consider employee preferences for: Work Specialization Span of Control Centralization
14-19
Implications for Managers
• Structural relationships impact attitude and behavior
• Structure constrains employees
14-20
Summary
1. Identified the six key elements that define an organization’s structure
2. Explained the characteristics of a bureaucracy3. Described a matrix organization4. Explained the characteristics of a virtual organization5. Summarized why managers want to create
boundaryless organizations6. Contrasted mechanistic and organic structural models7. Listed the factors that favor different organization
structures8. Explained the behavioral implications of different
organization structures
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