chapter 15 foundations of organization structure

8/10/2019 Chapter 15 Foundations of Organization Structure

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ORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N SS T E P H E N P. R O B B I N S

E L E V E N T H E D I T I O NE L E V E N T H E D I T I O N

W W W . P R E N H A L L . C O M / R O B B I N SW W W . P R E N H A L L . C O M / R O B B I N S 2005 Prentice Ha Inc.A ri!"t# re#er$e%.

P&'erP&int Pre#entati&n() C"arie C&&*

C"a+ter ,5

-&n%ati&n# &Or!aniati&n Strctre


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2005 Prentice Hall Inc.

All rights reserved. 152

What Is Organizational Structure?

1e) Eeent#3

,. W&r* #+eciaiati&n

2. De+artentaiati&n

4. C"ain & c&an%

. S+an & c&ntr&

5. Centraiati&n an%

%ecentraiati&n

6. -&raiati&n

1e) Eeent#3

,. W&r* #+eciaiati&n2. De+artentaiati&n

4. C"ain & c&an%

. S+an & c&ntr&

5. Centraiati&n an%

%ecentraiati&n

6. -&raiati&n

Or!aniati&na Strctre

Defnes how job tasksare ormally divided,grouped, andcoordinated.

There are six keyelements that managersneed to address whenthey design their org.sstructure.


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,7W&r* S+eciaiati&n8..,

Di$i#i&n & a(&r3

Ma*e# eicient #e & e+&)ee #*i#

Increa#e# e+&)ee #*i# t"r&!" re+etiti&n

Le## (et'een79&( %&'ntie increa#e# +r&%cti$it)

S+eciaie% trainin! i# &re eicient.

A&'# #e & #+eciaie% e:i+ent.

Di$i#i&n & a(&r3

Ma*e# eicient #e & e+&)ee #*i#

Increa#e# e+&)ee #*i# t"r&!" re+etiti&n

Le## (et'een79&( %&'ntie increa#e# +r&%cti$it)

S+eciaie% trainin! i# &re eicient.

A&'# #e & #+eciaie% e:i+ent.

The degree to which tasks in the organiationare subdivided into separate jobs.


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!i"ision o# La$or

Beneit# inc%e3

! "ncreasing levels o skill

! #ess time is wasted moving rom job to job

! Training is less costly

! "ncreased ocus

A%a Sit";# +in act&r)! $%en are much more likely to discover easier and readier

methods o attaining any object, when the whole attentiono their minds is directed towards that single object, than

when it is dissipated among a great variety o things.&'() p.*+


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,7W&r* S+eciaiati&n8..2

W&r* S+eciaiati&n

! The degree to which tasks in the organiation aredivided into separate jobs with each step completedby a dierent person. -dam /miths0Division o#abor1

! During the *st

hal o the 23th

century, managersviewed work specialiation as an unending source oincreased productivity, and , or a time, it was.

! 4owever, by *563, it became evident that a goodthing could be carried too ar.

! The point reached in some jobs where $humandiseconomies& rom work overspecialiation resulted0 boredom, atigue, stress, poor 7uality, increasedabsenteeism, and higher turnover ! more than osetthe economic advantages.


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Econo%ies an& !isecono%ies o#

Wor' S(ecialization

Impact fromImpact from

economieseconomies

of specializationof specialization

Impact fromImpact from

humanhuman

diseconomiesdiseconomies

HighHigh

LowLow

LowLow HighHigh

Productiv

ity

Productiv

ity

Work SpecializationWork Specialization


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)*Wor' S(ecialization++To&a,-s Vie.++/

Mt ana!er# t&%a) #ee '&r* #+eciaiati&n a#an i+&rtant &r!. ec"ani# (t n&t a# a #&rce& e$er7increa#in! +r&%cti$it).

T"e) rec&!nie t"e eiciencie# it create# incertain t)+e# & 9&(#< (t t"e) a#& rec&!nie t"e

+r&(e# it create# '"en it;# carrie% t& e=tree#. McD&na% #e# "i!" '&r* #+eciaiati&n t&

eicient) a*e > #e it# +r&%ct#.

H&'e$er< Aerican E=+re## > -&r% A#traia

"a$e (r&a%ene% t"e #c&+e & e+&)ee#; 9&(# >re%ce% '&r* #+eciaiati&n.


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27 De+artentaiati&n

?r&+in! Acti$itie# B)3 -ncti&n

Pr&%ct

?e&!ra+")

Pr&ce##

C#t&er

?r&+in! Acti$itie# B)3

-ncti&n

Pr&%ct

?e&!ra+") Pr&ce##

C#t&er

The basis by which jobs are grouped together.


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0* !e(art%entalization $, T,(e

The $asis $, .hich 1o$s are

grou(e& together is calle&+2

3unctional

! Grouping jobs byfunctions

performed 4ro&uct

! Grouping jobs byproduct line

Geogra(hical

! Grouping jobs onthe basis ofterritory orgeography

4rocess

! Grouping jobs onthe basis ofproduct orcustomer ow

5usto%er! Grouping jobs by

type of customerand needs


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All rights reserved.

De+artentaiati&n

Ma9&rT)+e#

&

De+artent

Or!aniati&n

Ma9&rT)+e#

&

De+artent

Or!aniati&n

-ncti&na-ncti&na

Pr&%ctPr&%ct

C#t&erC#t&er

?e&!ra+"ic?e&!ra+"ic

Pr&ce##Pr&ce##


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2 7De+artentaiati&n8..c&ntine%

Lar!e &r!#. Oten c&(ine t &r a & t"e#e&r# & %e+artentaiati&n.

-&r e=a+e @ a a9&r a+ane#e eectr&nic ir

&r!anie# eac" & it# %i$i#i&n# a&n! ncti&na

ine#< it# anactrin! nit# ar&n% +r&ce##e# t"e #e& cr#7ncti&na tea#.

c#t&er %e+artentaiati&n "e+# ana!er# (etter&nit&r c#t&er#; nee%# > re#+&n% t& c"an!e# in t"enee%#.

Mana!er# are #in! cr#7ncti&na tea#< '"ic" are '&r*tea# c&+e% & in%i$i%a# r& $ari ncti&na#+eciatie#. -&r e=a+e at -&r%;# ateria +annin! >&!i#tic# %i$i#i&n< a cr#7ncti&na tea 'it" e+&)ee#r& inance< +rc"a#in!< en!ineerin!< an% :ait) c&ntr&area# an% 'it" re+re#entati$e# r& &t#i%e &!i#tic#

#++ier# "a# a%e #e$era '&r* i+r&$eent#.


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-ncti&na De+artentaiati&n

A%$anta!e#

Eiciencie# r& +ttin! t&!et"er #iiar #+eciatie# an%

+e&+e 'it" c&&n #*i#< *n&'e%!e< an% &rientati&n#

C&&r%inati&n 'it"in ncti&na area

In7%e+t" #+eciaiati&n

Di#a%$anta!e#

P&&r c&nicati&n acr# ncti&na area#

Liite% $ie' & &r!aniati&na !&a#


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?e&!ra+"ica De+artentaiati&n

A%$anta!e#

M&re eecti$e an% eicient "an%in! & #+eciic

re!i&na i##e# t"at ari#e

Ser$e nee%# & ni:e !e&!ra+"ic ar*et# (etter

Di#a%$anta!e#

D+icati&n & ncti&n#

Can ee i#&ate% r& &t"er &r!aniati&na area#


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Pr&%ct De+artentaiati&n

A&'# #+eciaiati&n in +articar +r&%ct# an% #er$ice#

Mana!er# can (ec&e e=+ert# in t"eir in%#tr) Cer t& c#t&er#

@ D+icati&n & ncti&n#

@ Liite% $ie' & &r!aniati&na !&a#


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Pr&ce## De+artentaiati&n

M&re eicient &' & '&r* acti$itie#

@ Can &n) (e #e% 'it" certain t)+e# & +r&%ct#


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C#t&er De+artentaiati&n

C#t&er#; nee%# an% +r&(e# can (e et () #+eciai#t#

7 D+icati&n & ncti&n#

7 Liite% $ie' & &r!aniati&na !&a#


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4 7 C"ain & C&an%

! The continuous line o authority that extendsrom upper levels o an organiation to thelowest levels o the organiation and clarifeswho reports to whom.

5hain o# 5o%%an& in"ol"es three

other conce(ts6At"&rit)Re#+&n#i(iit)nit) & C&an%


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4 7 C"ain & C&an%88c&ntine%

Authorit,

! 8eers to the rights inherent in a managerial position totell people what to do and to expect them to do it.

! n org.s managers, who are in the chain o command,are granted a certain degree o authority to do their job ocoordinating 9 overseeing the work o others.

Res(onsi$ilit,! The obligation or expectation to perorm any assignedduties.

! s managers assign work to employees, those employeesassume an obligation to perorm any assigned duty.

7nit, o# 5o%%an&

! The concept that a person should have one boss andshould report only to that person.- :ayols *+ ;rinciples o%anagement1

! 'ithout unity o command, con


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47 C"ain & C&an%8.t&%a);# $ie'

Ear) ana!eent t"e&ri#t# -a)&< We(er< Ta)&r< >&t"er#

'ere ena&re% 'it" t"e c&nce+t# & c"ain & c&an% cr#7ncti&na tea# a# ne' &r!.

%e#i!n# 'it" ti+e (#e# are i+eente%< t"e#e

tra%iti&na c&nce+t# are e## ree$ant.


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7 S+an & C&ntr&

Narr&' S+an Dra'(ac*#3

E=+en#e & a%%iti&na a)er# & ana!eent.

Increa#e% c&+e=it) & $ertica c&nicati&n.

Enc&ra!eent & &$er) ti!"t #+er$i#i&n an%%i#c&ra!eent & e+&)ee at&n&).

Narr&' S+an Dra'(ac*#3

E=+en#e & a%%iti&na a)er# & ana!eent.

Increa#e% c&+e=it) & $ertica c&nicati&n.

Enc&ra!eent & &$er) ti!"t #+er$i#i&n an%%i#c&ra!eent & e+&)ee at&n&).

C&nce+t3C&nce+t3

Wi%er #+an# & ana!eent increa#e &r!aniati&naWi%er #+an# & ana!eent increa#e &r!aniati&naeicienc).eicienc).

C&nce+t3C&nce+t3

Wi%er #+an# & ana!eent increa#e &r!aniati&naWi%er #+an# & ana!eent increa#e &r!aniati&naeicienc).eicienc).

The number o subordinates a manager cane=ciently and eectively direct.


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7 S+an & C&ntr&88.c&nt;%

T"e n(er & e+&)ee# '"& can (e eecti$e) an%

eicient) #+er$i#e% () a ana!er.

! Width of span is aected by:

S'ills an& a$ilities o# the %anager

E%(lo,ee characteristics

5haracteristics o# the .or' $eing &one

Si%ilarit, o# tas's

5o%(le8it, o# tas's

4h,sical (ro8i%it, o# su$or&inates

Stan&ar&ization o# tas's

So(histication o# org2-s in#or%ation s,ste%

Strength o# the org2 culture 9 (re#erre& st,le o# the %anager


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C&ntra#tin! S+an# & C&ntr&


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7 S+an & C&ntr& 8..t&%a);# $ie'

T"e tren% in recent )ear# "a# (een t&'ar% ar!er

#+an# & c&ntr&< '"ic" are c&n#i#tent 'it"

ana!er#; e&rt# t& re%ce ct#< #+ee% +

%eci#i&n a*in!< increa#e e=i(iit)< !et cer t&

c#t&er#< an% e+&'er e+&)ee#.

H&'e$er< t& en#re t"at +er&rance %&e#n;t

#er (eca#e & t"e#e 'i%er #+an#< &r!#. are

in$e#tin! "ea$i) in e+&)ee trainin!.

Mana!er# rec&!nie t"at t"e) can "an%e a 'i%er

#+an '"en e+&)ee# *n&' t"eir 9&(# 'e &r cantrn t& c&7'&r*er# i t"e) "a$e F#.


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5 7 Centraiati&n > Decentraiati&n

Centraiati&n

! The degree to which decision0making isconcentrated at a single point in theorganiations.

Organizations in .hich to( %anagers %a'e all the

&ecisions an& lo.er*le"el e%(lo,ees si%(l, carr, outthose or&ers2

Decentraiati&n

! (rganiations in which decision0making is pusheddown to the managers who are closest to the

action.

E+&)ee E+&'erent

! "ncreasing the decision0making authority -power1o employees.


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-act&r# t"at Inence t"e A&nt & Centraiati&n

:ore 5entralization

! >nvironment is stable.

! #ower0level managers are not as capable or experiencedat making decisions as upper0level managers.

! #ower0level managers do not want to have a say in

decisions.

! Decisions are relatively minor.

! (rganiation is acing a crisis or the risk o companyailure.

! ?ompany is large.! >ective implementation o company strategies depends

on managers retaining say over what happens.


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-act&r# t"at Inence t"e A&nt & Centraiati&n

:ore !ecentralization

! >nvironment is complex, uncertain.

! #ower0level managers are capable and experienced atmaking decisions.

! #ower0level managers want a voice in decisions.

! Decisions are signifcant.

! ?orporate culture is open to allowing managers to havea say in what happens.

! ?ompany is geographically dispersed.

! >ective implementation o company strategiesdepends on managers having involvement and


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Centraiati&n > Decentraiati&n88. T&%a);# $ie'

An &r!. "a$e "a% t& (ec&e &re e=i(e > re#+&n#i$e t)+ica) "a$e &re %etaie%

*n&'e%!e a(&t +r&(e# > "&' (e#t t& #&$e t"e t"an

%& t&+ ana!er#.

H&ne)'e Paciic< '"ic" &$e% r& a "ierarc"ica

ana!eent #trctre t& &ne t"at i# c" atter > tea7

(a#e%.

Re#t7 increa#e% re$ene# > &re intiate *n&'e%!e &t"e c&+an);# a9&r c#t&er#.


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6 7 -&raiati&n

! The degree to which jobs within the organiationare standardied and the extent to whichemployee behavior is guided by rules andprocedures.

Highl, #or%alize& 1o$s o##er little &iscretion o"er .hat isto $e &one2

Lo. #or%alization %eans #e.er constraints on ho.

e%(lo,ees &o their .or'2


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C&&n Or!aniati&na De#i!n#

T"ree & t"e &re c&&n &r!. %e#i!n# in #e3 t"e simplestructure< t"e bureaucracy< an% t"e matrix

Si+e Strctre

structure characteried by a low degree o

departmentaliation, wide spans o control, authoritycentralied in a single person, and little ormaliation.

This structure is most widely practiced in small businesses in whichthe manager 9 the owner are one 9 the same.

The strength o this structure lies in its simplicity. "t is ast,


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5o%%on Organization !esigns ;cont-&Da(&rat&rie#< c&n#trcti&n c&+anie#< "+ita# #"arin! & #+eciaie% re#&rce#acr# +r&%ct#.

It# a9&r %i#a%$anta!ei# t"e %iict) &c&&r%inatin! t"e ta#*# & %i$er#e ncti&na#+eciai#t# #& t"at t"eir acti$itie# are c&+ete%&n tie > 'it"in (%!et.


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Matri= Strctre88c&ntine%

Pr&%ct %e+artentaiati&n< &n t"e &t"er "an%< "a# e=act)

t"e &++ite (eneit# > %i#a%$anta!e#.

It aciitate# c&&r%inati&n a&n! #+eciatie# t& ac"ie$e &n7

tie c&+eti&n > eet (%!et tar!et#.

It +r&$i%e# cear re#+&n#i(iit) &r a acti$itie# reate% t& a+r&%ct< (t 'it" %+icati&n & acti$itie# > ct#.

T"e atri= atte+t# t& !ain t"e #tren!t"# & eac"< '"ie

a$&i%in! t"eir 'ea*ne##e#.

T"e t &($i #trctra c"aracteri#tic & t"e atri= i#

t"at it (rea*# t"e nit)7&7c&an% c&nce+t. E+&)ee# in t"e atri= "a$e t'& (#e# @ t"eir ncti&na

%e+t. ana!er# > t"eir +r&%ct ana!er#. T"ere&re< t"e

atri= "a# a %a c"ain & c&an%.


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Matri= Strctre88c&ntine%8a%$anta!e#

T"e #tren!t" & t"e atri=ie# in it# a(iit) t& aciitate

c&&r%inati&n '"en t"e &r!. "a# a ti+icit) & c&+e= >inter%e+en%ent acti$itie#.

A# an &r!. !et# ar!er< it# in&rati&n7+r&ce##in! ca+acit)can (ec&e &$er7&a%e%.

In a (reacrac)< c&+e=it) re#t# in increa#e%

&raiati&n. T"e %irect > re:ent c&ntact (/' %ierent #+eciatie# in t"e

atri= can a*e &r (etter c&nicati&n > &ree=i(iit).

In&rati&n +ereate# t"e &r!. > &re :ic*) reac"e# t"e+e&+e '"& nee% t& ta*e acc&nt & it.

Matri= re%ce# G(rea7+at"&&!ie# 7 t"e %a ine# &at"&rit) re%ce t"e ten%encie# & %e+t. e(er# t&(ec&e #& (#) +r&tectin! t"eir itte '&r%# t"at t"e &r!;#&$era !&a# (ec&e #ec&n%ar).


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Matri= Strctre88c&ntine%8a%$anta!e#

Matri= a#& aciitate# t"e eicient a&cati&n &

#+eciai#t#.

W"en in%i$i%a# 'it" "i!") #+eciaie% #*i#

are #tc* in &ne ncti&na %e+t. &r +r&%ct

!r&+< t"eir taent# are &n&+&ie% >

n%er#e%.

T"e atri= ac"ie$e# t"e a%$anta!e# &

ec&n&ie# & #cae () +r&$i%in! t"e &r!. 'it"

(&t" t"e (e#t re#&rce# > an eecti$e 'a) &

en#rin! t"eir eicient %e+&)ent.


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Matri= Strctre8c&nti8%i#a%$anta!e#

T"e a9&r %i#a%$anta!e# & t"e atri=ie in t"e c&n#i&n

it create#< it# +r&+en#it) t& ter +&'er #tr!!e#< > t"e#tre## it +ace# &n in%i$i%a#.

W"en nit)7&7c&an% c&nce+t i# i!n&re%< a(i!it)

increa#e# > a(i!it) &ten ea%# t& c&nict.

C&n#i&n > a(i!it) a#& create t"e #ee%# & +&'er

#tr!!e#.

Breacrac) re%ce# t"e +&tentia &r +&'er !ra(# ()

%einin! t"e re# & t"e !ae. W"en t"e re# %& n&t

e=i#t< +&'er #tr!!e# (/' ncti&na > +r&%ct ana!er#

re#t.

-&r in%i$i%a# '"& %e#ire #ecrit) > a(#ence r&

a(i!it)< t"i# '&r* ciate can +r&%ce #tre##.

Re+&rtin! t& &re t"an &ne (# intr&%ce# r&e c&nict >

ncear e=+ectati&n# intr&%ce r&e a(i!it).


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Ne. !esign O(tions

C"aracteri#tic#3

Brea*# %&'n %e+artenta (arrier#.

Decentraie# %eci#i&n a*in! t& t"e tea e$e.

Re:ire# e+&)ee# t& (e !enerai#t# a# 'e a##+eciai#t#.

Create# a Ge=i(e (reacrac).

C"aracteri#tic#3

Brea*# %&'n %e+artenta (arrier#.

Decentraie# %eci#i&n a*in! t& t"e tea e$e.

Re:ire# e+&)ee# t& (e !enerai#t# a# 'e a##+eciai#t#.

Create# a Ge=i(e (reacrac).

Tea StrctreThe use o teams as the central device tocoordinate work activities.


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Ne. !esign O(tions ;cont-&

chapter 15 foundations of organization structure

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