Group OneBASIC ORGANIZATION DESIGNS

V

CHAPTER’S OVERVIEW

• Foundations of organizational structure and its key

components

• What determines the type of organizational structure/its

contingencies

• Application of Organization Structures

• Learning organization- the mind-set and shared values

within the organization

Companies’ Overview

Foundations of

Organization Structure

and Its Key Components

K

(What you know?)

W(What you want to know)

Or (Should want to know)

L(What you’ve leant)

1. The SIX Elements of Organizational

Structure

2. The Advantages and Disadvantages of Work

Specialization

3. Contrast Authority and Power

4. Five Ways Management can Departmentalize

Organizational Design

The SIX Elements of Organizational Structure

LG1

The process in which managers develop or change their organization’s structure

Organisational structure- A formal system of working relationships that both separates tasks and integrates tasks

The SIX Elements of Organizational Structure

LG1

1. Specialization/Division of Labour

2. Chain of Command

3. Span of Control

4. Authority and Responsibility

5. Centralization versus Decentralization

6. Departmentalization

Specialization

The process of identifying a particular tasks and assigning them to individuals or work groups who have been trained to do them/best suited

for them

Candidate Service Team

Client Service Team

The SIX Elements of Organizational Structure

LG1

1. Specialization/Division of Labour

2. Chain of Command

3. Span of Control

4. Authority and Responsibility

5. Centralization versus Decentralization

6. Departmentalization

Chain of command

The continuous line of authority that extends from the highest levels in an organization to the lowest level and clarifies who reports

to whom

Unity of Command

The SIX Elements of Organizational Structure

LG1

1. Specialization/Division of Labour

2. Chain of Command

3. Span of Control

4. Authority and Responsibility

5. Centralization versus Decentralization

6. Departmentalization

The number of subordinates a manager can direct efficiently and effectively

Span of Control

CHIEF EXECUTIVE OFFICER

Lara Quentrall-Thomas

CANDIDATE SERVICE TEAM

MANAGER

Kevin Mc Clean

Sparkle Bain

Abeke Forde

SYSTEM ADMINISTRATION

Stuart Patrick

FINANCE DIRECTOR

Melissa Shim

Pamela Pactrick

Patricia del Pino

CLIENT SERVICES TEAM

Astrid Barnett

Tamara D' Andrade

Ainka Primus

OPERATIONS DIRECTOR

Karlene Hassanali

The SIX Elements of Organizational Structure

LG1

1. Specialization/Division of Labour

2. Chain of Command

3. Span of Control

4. Authority and Responsibility

5. Centralization versus Decentralization

6. Departmentalization

Authority and Responsibility

The rights inherent in the managerial position to give orders and expect them to be obeyed

Or

The right to decide and to act

Spiderman: With great power comes………Responsibility is the obligation to perform assigned activities

Power vs. Authority

CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

MANUFACTURING

MANUFACTURING DIRECTOR

LABELS-SALES

EXECUTIVE DIRECTOR OF SALES

SALES EXECUTIVE

ACCOUNTS EXECUTIVE

LABEL-CUSTOMER SERVICE

CUSTOMER SERVICE REPRESENTATIVE

ADMINISTRATIVE ASSISTANT

BRANDING

BRANDING DIRECTOR

ACCOUNTS EXECUTIVE

SALES DIRECTOR- WINE AND SPIRITS

MACHINERY

MACHINERY DIRECTOR

TECHINICAL SERVICE DIRECTORR

HUMAN RESOURCE

HUMAN RESOURCE DIRECTOR

Line authority

Staff authority

Line authority

CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

MANUFACTURING

MANUFACTURING DIRECTOR

LABELS-SALES

EXECUTIVE DIRECTOR OF SALES

SALES EXECUTIVE

ACCOUNTS EXECUTIVE

LABEL-CUSTOMER SERVICE

CUSTOMER SERVICE REPRESENTATIVE

ADMINISTRATIVE ASSISTANT

BRANDING

BRANDING DIRECTOR

ACCOUNTS EXECUTIVE

SALES DIRECTOR- WINE AND SPIRITS

MACHINERY

MACHINERY DIRECTOR

TECHINICAL SERVICE DIRECTORR

HUMAN RESOURCE

HUMAN RESOURCE DIRECTOR

Line authority

Staff authority

Line authority

Types of Power

Coercive Reward Legitimate Expert Referent

The SIX Elements of Organizational Structure

LG1

1. Specialization/Division of Labour

2. Chain of Command

3. Span of Control

4. Authority and Responsibility

5. Centralization versus Decentralization

6. Departmentalization

Centralization versus Decentralization

A management approach that is characterised by authority concentrated at the top of an organization or department

A management approach that is characterized by a high degree of authority being delegated throughout the organization to middle

and lower level managers

Power

Centralization

TOP MANAGER

SALES MANAGER

BRANDSMANAGER

LABELLING MANAGER

Contemporary Management Approach

DECENTRALIZATION

CHIEF EXECUTIVE OFFICER

Lara Quentrall-Thomas

CANDIDATE SERVICE TEAM

MANAGER

Kevin Mc Clean

Sparkle Bain

Abeke Forde

SYSTEM ADMINISTRATION

Stuart Patrick

FINANCE DIRECTOR

Melissa Shim

Pamela Pactrick

Patricia del Pino

CLIENT SERVICES TEAM

Astrid Barnett

Tamara D' Andrade

Ainka Primus

OPERATIONS DIRECTOR

Karlene Hassanali

?

CONSIDER ADVANTAGES

COSTLINESS OF DECISION FREES UP MANAGERS TO PLAN AND STRATEGIZE

CORPORATE CULTURE DEVELOPS LOWER LEVEL MANAGERS’ CONCEPTUAL SKILLS

AVAILABILTIY OF MANAGERS DECISION CAN BE MADE FASTER (EMPLOYEES CLOSER)

HEALTHY, ACHIEVEMENT-ORIENTED CULTURE IS FOSTERED/SELF-ESTEEM

The SIX Elements of Organizational Structure

LG1

1. Specialization/Division of Labour

2. Chain of Command

3. Span of Control

4. Authority and Responsibility

5. Centralization versus Decentralization

6. Departmentalization

DEPARTMENTALIZATION THE BUILDING BLOCK OF THE ORGANIZATION

The subdividing of work and assigning it to specialized groups within an organization

FORMS OF DEPARTMENTALIZATION

Functional- grouped according to their expertise and resources they draw on/function performed

Product- grouped by products produced

Customer-grouped by activities or needs of common customers

Geographic/Place-grouped according to location/territories served

Process-grouped according to work/customer flow

CHIEF EXECUTIVE OFFICER

Lara Quentrall-Thomas

CANDIDATE SERVICE TEAM

MANAGER

Kevin Mc Clean

Sparkle Bain

Abeke Forde

SYSTEM ADMINISTRATION

Stuart Patrick

FINANCE DIRECTOR

Melissa Shim

Pamela Pactrick

Patricia del Pino

CLIENT SERVICES TEAM

Astrid Barnett

Tamara D' Andrade

Ainka Primus

OPERATIONS DIRECTOR

Karlene Hassanali

DEPARTMENTALIZATION BY

FUNCTION

CUSTOMERCUSTOMER

CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

MANUFACTURING

MANUFACTURING DIRECTOR

LABELS-SALES

EXECUTIVE DIRECTOR OF SALES

SALES EXECUTIVE

ACCOUNTS EXECUTIVE

LABEL-CUSTOMER SERVICE

CUSTOMER SERVICE REPRESENTATIVE

ADMINISTRATIVE ASSISTANT

BRANDING

BRANDING DIRECTOR

ACCOUNTS EXECUTIVE

SALES DIRECTOR- WINE AND SPIRITS

MACHINERY

MACHINERY DIRECTOR

TECHINICAL SERVICE DIRECTORR

HUMAN RESOURCE

HUMAN RESOURCE DIRECTOR

PRODUCTPROCESSES

The SIX Elements of Organizational Structure

LG1

1. Specialization/Division of Labour

2. Chain of Command

3. Span of Control

4. Authority and Responsibility

5. Centralization versus Decentralization

6. Departmentalization

CHIEF EXECUTIVE OFFICER

Lara Quentrall-Thomas

CANDIDATE SERVICE TEAM

MANAGER

Kevin Mc Clean

Sparkle Bain

Abeke Forde

SYSTEM ADMINISTRATION

Stuart Patrick

FINANCE DIRECTOR

Melissa Shim

Pamela Pactrick

Patricia del Pino

CLIENT SERVICES TEAM

Astrid Barnett

Tamara D' Andrade

Ainka Primus

OPERATIONS DIRECTOR

Karlene Hassanali

RECAP/SUMMARIZE

Specialization Chain of CommandSpan of Control Authority & ResponsibilityCentralization versus Decentralization

Departmentalization

What determines the type of organizational

structure/its contingencies?

K

(What you know?)

W(What you want to know)

Or (Should want to know)

L(What you’ve leant)

1. The SIX Elements of Organizational

Structure 5. Mechanistic Vs. Organic Organizations2. The Advantages and

Disadvantages of Work Specialization

3. Contrast Authority and Power

6. Effects Of Strategy, Size, Technology, And

Environment On Organization Structures

4. Five Ways Management can Departmentalize

7. Divisional Vs. Functional Structures

Contrast mechanistic and organic organizations

Mechanistic organisation is a structure that Is high in specialization, formulation

and centralizationOrganic organisation is a structure that is

low in specialization, formulation and centralization.

Mechanistic

It is RIGID - close supervision

Bureaucratic – authority is centralized

Most appropriate for Stable Environment

Organic

Fluid and flexible- tasks and roles are left ambiguous to encourage innovation and quick

response

Authority is decentralized

Most appropriate for unstable environments

VS

The effect of strategy, size, technology, and environment on the organization structures

• As strategies move from single product, to vertical integration, to product diversification,

structure must move from organic to mechanistic.

• As size increases, so to do specialization, formalization, and horizontal and vertical

differentiation. Once an organization has 2000 or more employees its fairly mechanistic.

Divisional VS. Functional Structures

Functional Structure takes advantage of specialization and provides economies of scale by allowing people

with common skills to work together.

Functions are simply groups based on the expertise of individuals

CHIEF EXECUTIVE OFFICER

Lara Quentrall-Thomas

CANDIDATE SERVICE TEAM

MANAGER

Kevin Mc Clean

Sparkle Bain

Abeke Forde

SYSTEM ADMINISTRATION

Stuart Patrick

FINANCE DIRECTOR

Melissa Shim

Pamela Pactrick

Patricia del Pino

CLIENT SERVICES TEAM

Astrid Barnett

Tamara D' Andrade

Ainka Primus

OPERATIONS DIRECTOR

Karlene Hassanali

FUNCTIONAL FUNCTIONAL

Structure is composed of autonomous units or divisions, with managers having full responsibility for a product or service

Divisional

Divisional structures are simply separate business units based on products, location or processes, within which still

contains functional structures

CEO

WASHING MACHINE DIVISION

MARKETING FINANCE OPERATIONS

LIGHTING DIVISION

MARKETING FINANCE OPERATIONS

TELEVISION AND STEREO DIVISION

MARKETING FINANCE OPERATIONS

DIVISIONS

FUNCTIONS

K

(What you know?)

W(What you want to know)

Or (Should want to know)

L(What you’ve leant)

5. Mechanistic Vs. Organic Organizations 8. Strengths of the

Matrix Structure

6. Effects Of Strategy, Size, Technology, And

Environment On Organization Structures

9. Boundaryless Organization and its

Contributing Elements

7. Divisional Vs. Functional Structures

MATRIX STRUCTURESimultaneously groups people and resources

based on functions and product.

Function

Product

Boundaryless organization and what elements have contributed to its development

• An organization where members are linked by computers, fax, computer aided design

systems and video teleconferencing and who rarely see each other face to face.

K

(What you know?)

W(What you want to know)

Or (Should want to know)

L(What you’ve leant)

8. Strengths of the Matrix Structure 10. Learning

Organization

9. “Boundaryless” Organization and its

Contributing Elements

11. Organizational

Culture

LEARNING ORGANIZATIONS

What is a learning organization?

This is an organization that has developed the

capacity to continuously adapt and change

because all members take an active role in

identifying and resolving work-related issues.

TYPES OF ORGANIZATIONAL LEARNING

1. Single-loop learning is localized learning within departments or sub units of the organization but may have few or if any

implications for the entire organization and policies and rules remain unchanged.

2. Double-loop learning occurs when a

discovery or insight causes not only localized change but a general revision in

corporate policy or strategy that takes into account this new insight.

3. Triple-loop learning goes one step further by

causing management to rethink the entire business paradigm and make organizational

changes based on the new insight.

Characteristics of a Learning Organization

ORGANIZATIONAL DESIGN

• Boundaryless• Teams

• Empowerment

ORGANIZATIONAL CULTURE

• Strong Mutual Relationships• Sense Of Community

• Caring• Trust

INFORMATION SHARING

• Open• Timely

• Accurate

LEADERSHIP

• Shared Vision• Collaboration

LEARNING ORGANIZATION

ORGANIZATION CULTURE

What is an organizational culture?

An organization culture is a system of shared meaning within an organization that determines, to a large

degree, how employees act or in other words, it gives members of an organization meaning and suggests

rules for how to behave and deal with problems within the organization.

It is also called corporate culture and it is the firm’s

shared values, beliefs, traditions, philosophies, rules and heroes.

The organizational culture may be expressed formally through codes of ethics, memos, manuals and

ceremonies but it is more often expressed informally through dress codes, work habits, extracurricular

activities and stories.

How Can Cultures Be Assessed?

Ten (10) Characteristics Of Organizational Culture

Member Identity

ControlPeople Focus

Group Emphasis

Unit Integration

Risk Tolerance

Reward Criteria

Conflict Tolerance

Means-end Orientation

Open-system Focus

Characteristics of Organizational Culture

1. Member identity

The degree to which employees identify with

the organization as a whole rather than with their type of job or field of professional expertise

Characteristics of Organizational Culture

2. Group emphasis

The degree to which work activities are organized around

groups rather than individuals

Characteristics of Organizational Culture

3. People focus

The degree to which management

decisions take into consideration the

effects of outcomes on people within the

organization

Characteristics of Organizational Culture

4. Unit integration

The degree to which units in the organization are encouraged to operate

in a coordinated or inter-dependent manner

Characteristics of Organizational Culture

5. Control

The degree to which rules, regulations and direct supervisions are

used to oversee and control employees

behavior

Characteristics of Organizational Culture

6. Risk tolerance

The degree to which employees are

encouraged to be aggressive, innovative

and risk seeking

Characteristics of Organizational Culture

7. Reward criteria

The degree to which rewards such as salary increases

and promotion are allocated on employees performance criteria in

contrast to seniority, favoritism or other non-

performance factors

Characteristics of Organizational Culture

8. Conflict Tolerance

The Degree To Which Employees Are

Encouraged To Air Conflicts And Criticisms

Openly

Characteristics of Organizational Culture

9. Means-end orientation

The degree to which management focuses on

results of outcomes rather than on the

techniques and processes used to achieve those

outcomes

Characteristics of Organizational Culture

10. Open-system focus

The degree to which the organization monitors

and responds to changes in the external environment

Thank you !!!!