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Copyright © 2012 PearsonEducation, Inc. Publishing asPrentice Hall
Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-1
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Copyright © 2012 PearsonEducation, Inc. Publishing asPrentice Hall
Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-2
!Describe si" #ey ele$ents in or%aniational
desi%n!Contrast $ehanisti and or%ani strutures!Discuss the ontin%eny 'ators that 'avor
either the $ehanisti $odel or the or%ani
$odel o' or%aniational desi%n!Describe traditional or%aniational desi%ns
Chapter 5: oundations of !rgani"ational #esign
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-3
#esigning !rgani"ational$tructure! Organizing - arranging and structuring %or& to
acco'plish an organi"ation(s goals.
! Organizational Structure - the )or'alarrange'ent o) *obs %ithin an organi"ation.
!Organizational Design - a process in+ol+ingdecisions about si &ey ele'ents:
! -or& speciali"ation
! #epart'entali"ation
! Chain o) co''and
! $pan o) control
! Centrali"ation and decentrali"ation
! or'ali"ation
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-4
Ehibit 101: Purposes o)!rgani"ing
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-5
!rgani"ational $tructure
! -or& $peciali"ation ( /he degree to %hich tas&s in the
organi"ation are di+ided into separate
*obs %ith each step co'pleted by adierent person.
( !+erspeciali"ation can result in hu'andisecono'ies such as boredo', )atigue,
stress, poor uality, increasedabsenteeis', and higher turno+er.
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-6
#isecono'ies o) -or&
$peciali"ation
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-7
/ypes o) ob #esign
! ob si'pli3cation 4 rearranging the duties andtas& so it %ill be unco'plicated and easy tohandle.
! ob rotation 4 a practice %here *ob is changed
syste'atically %ithin a ti'e duration in aseuence o) *ob o%.
! ob enlarge'ent 4 %iden the scope and nu'bero) tas& and indi+idual to carry out a speci3ed *ob.
! ob enrich'ent 4 increase the nu'ber o) tas& andresponsibility to enhance the capability,'oti+ation and per)or'ance o) an e'ployee.
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-8
#epart'entali"ation by /ype! Functional
( 6rouping *obs by)unctions per)or'ed
! Product ( 6rouping *obs by
product line
! Geographical
( 6rouping *obs on thebasis o) territory orgeography
! Process
( 6rouping *obs onthe basis o) product
or custo'er o%! Customer
( 6rouping *obs bytype o) custo'er
and needs
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-9
!rgani"ational $tructure7cont.8! Chain of Command - the
continuous line o) authority thatetends )ro' upper le+els o) an
organi"ation to the lo%est le+els o)the organi"ation9clari3es %horeports to %ho'.
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-10
!rgani"ational $tructure7cont.8! Authority - the rights inherent in a
'anagerial position to tell people %hatto do and to epect the' to do it.
! Responsibility the obligation orepectation to per)or'.
! nity of Command the concept that
a person should ha+e one boss andshould report only to that person.
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-11
Ehibit 10: /he i+e Co''onor's o) #epart'entali"ation
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-12
or's o) #epart'entali"ation
7cont.8
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-13
or's o) #epart'entali"ation
7cont.8
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-14
!ther !rgani"ational$tructures! /ea';ased $tructure! ;oundaryless !rgani"ation
! ery eible and can respond rapidly tochange.
! Each e'ployee has t%o bosses %hich cancause proble's.
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Management , Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Eduation 10-15
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Ehibit 10?: Chain o) Co''andand @ine Authority
hibi 0 i $
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Ehibit 105: @ine +s. $taAuthority
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$pan o) Control
! Span of Control - the nu'ber o)e'ployees %ho can be eecti+ely andeBciently super+ised by a 'anager.
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-idth o) span is aected by:
! $&ills and abilities o) the 'anager! E'ployee characteristics
! Characteristics o) the %or& being done
! $i'ilarity o) tas&s
! Co'pleity o) tas&s
! Physical proi'ity o) subordinates
! $tandardi"ation o) tas&s
!$ophistication o) the organi"ation(sin)or'ation syste'
! $trength o) the organi"ation(s culture
! Pre)erred style o) the 'anager
E hibi 10 C i $ )
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Ehibit 10: Contrasting $pans o)Control
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Centrali"ation
! Centralization - the degree to%hich decision 'a&ing isconcentrated at upper le+els in the
organi"ation.! /his is co''on in organi"ations in %hich top
'anagers 'a&e all the decisions and lo%erle+el e'ployees si'ply carry out those
orders.
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#ecentrali"ation
! Decentralization - %hen anorgani"ation relegates decision'a&ing to 'anagers %ho are closest
to the action.! E'ployee E'po%er'ent
( Increasing the decision'a&ing authority
7po%er8 o) e'ployees
E hibit 10 D C t li ti
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Ehibit 10D: Centrali"ation or#ecentrali"ation
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or'ali"ation
! Formalization the degree to %hich *obs %ithin the organi"ation arestandardi"ed and the etent to %hich
e'ployee beha+ior is guided by rulesand procedures.
( Highly )or'ali"ed *obs oer littlediscretion o+er %hat is to be done.
( @o% )or'ali"ation 'eans )e%erconstraints on ho% e'ployees do their%or&.
E hibit 10 < h i ti >
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Ehibit 10: ersus!rganic !rgani"ations
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Contingency actors
! $tructural decisions are inuencedby:
( !+erall strategy o) the organi"ation
( $i"e o) the organi"ation ( /echnology use e'ployed by the
organi"ation
( #egree o) en+iron'ental uncertainty
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Contingency actors 7cont.8
! $trategy ra'e%or&s: ( Inno+ation
! Pursuing co'petiti+e ad+antage through'eaning)ul and uniue inno+ations )a+orsan organic structuring
( Cost 'ini'i"ation
! ocusing on tightly controlling costs reuires
a 'echanistic structure )or the organi"ation
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Contingency actors 7cont.8
! $trategy and $tructure ( Achie+e'ent o) strategic goals is )acilitated
by changes in organi"ational structure thatacco''odate and support change.
! $i"e and $tructure
( As an organi"ation gro%s larger, its structure
tends to change )ro' organic to 'echanistic%ith increased speciali"ation,depart'entali"ation, centrali"ation, andrulesFregulations.
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on
/echnology and $tructure
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/raditional #esigns
! $i'ple structure! @o% depart'entali"ation, %ide spans o) control,
centrali"ed authority, little )or'ali"ation
! unctional structure! #epart'entali"ation by )unction
! !perations, 3nance, 'ar&eting, hu'an resources,and product research and de+elop'ent
! #i+isional structure! Co'posed o) separate business units or di+isions
%ith li'ited autono'y under the coordination andcontrol o) the parent corporation
Ehibit 10 10: /raditional
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Ehibit 1010: /raditional!rgani"ational #esigns
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/er's to Kno%
! organi"ing! organi"ational structure! organi"ational chart! organi"ational design! %or& speciali"ation
! depart'entali"ation! cross)unctional tea's! chain o) co''and! authority! responsibility! unity o) co''and
! span o) control! centrali"ation! decentrali"ation! e'ployee e'po%er'ent! )or'ali"ation
! 'echanistic organi"ation! organic organi"ation! unit production! 'ass production! process production
! si'ple structure! )unctional structure! di+isional structure! tea' structure! 'atri structure! pro*ect structure! boundaryless organi"ation! +irtual organi"ation! net%or& organi"ation! learning organi"ation
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