organizational design and - copy

8/3/2019 Organizational Design and - Copy

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Is a social group which distributes tasksfor a collective goal.

The word itself is derived from the Greekword organon, itself derived from thebetter-known word ergon - as we know`organ` - and it means a compartmentfor a particular job


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Are the products of the decision-makingprocesses that we introduced to you as

planning. The goals that managers develop

through planning are typically ambitious,far-reaching, and open ended.


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A Manager is the person responsible forplanning and directing the work of a

group of individuals, monitoring theirwork, and taking corrective action whennecessary.


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Is the decision-making process by whichmanagers choose an organizational

structure appropriate to the strategy forthe organization and the environment inwhich members of the organizationcarry out that strategy.


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Division of labor

Departmentalization

Hierarchy Coordination


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Division of work

Reflecting the fact that all organizational

tasks, from manufacturing tomanagement, can be subdivided.


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Department

A department is a part of a larger

organization with a specific responsibility. Refers to the process of grouping

activities into departments.

Division of labour creates specialists whoneed coordination. This coordination isfacilitated by grouping specialiststogether in departments.


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A pattern of multiple levels of anorganizational structure, at the top of

which is the senior-ranking manager(ormanagers) responsible for the operationsof the entire organization; other, lower-ranking managers are located down the

various levels of the organization.


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Span of management control Refers to the number of people and departments

that report directly to a particular manager.

Chain of command The plan that specifies who reports to whom in an

organization: such reporting lines are prominentfeatures of any organization chart.


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Is the process of integrating the activitiesof separate departments in order to

pursue organizational goals effectively.Without coordination, people would losesight of their roles within the totalorganization and be tempted to pursue

their own departmental interest at theexpense of organizational goal.


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Differentiation

Differences in attitudes and working styles,

arising naturally among members of differentdepartments, that can complicate thecoordination of an organizations activities.

Integration

The term Laurence and Lorsch use in placeof coordination, to designate the degree towhich members of various departments worktogether in a unified manner.


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Communication Is the key to effective coordination.

Coordination

Is directly dependent on the acquisition, transmissionand processing of information.

Three types of approaches to achievingeffective coordination

Using basic management techniques Boundary spanning Reducing the need for coordination


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Is a frame work that managers device fordividing and coordinating the activities

of members of an organization. Becausestrategies and environmentalcircumstances differ from oneorganization to the next, there are a

variety of possible organizationalstructures.


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The decision-making process by whichmanagers choose an organizationalstructure appropriate to the strategy for the

organization and the environment of themembers.

Classical Approach

Task-Technology Approach Environmental Approach


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Most efficient and effective organizationaldesign had a hierarchical structure in

which members of the organization areguided by their actions in a sense of duty.

Evolves into BUREAUCRACY.


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Organizational Design which considersthe production technology being used.

Smaller Unit = Less Organizational Design Categories of T.T. Approach

Unit Production & Small Batch Production

Large Batch & Mass Production Process production


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Unit Production

Production of individual items tailored to

customers specs

Small Batch

Products made in small quantities


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Large Batch Production & MassProduction

Manufacture of products in large quantities


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Production of materials that are sold byweight or volume.


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Mechanistic Approach

Organization are broken into specialized

task, more defined objectives Organic System

Individuals works in a group setting.


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Organizational restructuring which resultsin decreasing the size of the organization

and often results in a flatterorganizational structure.


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Functional Organization

Product / Market Organization

Division by Product Division by Geography

Division by Customer

Matrix Organization

INFORMAL Organization


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A form of departmentalization in whichindividuals engaged in one functional

activity.


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Product Organization

Organization of company that bringstogether those involved in a product

Market Organization

Organization of company that bringstogether those involved in a market

Division Large organization department that acts a

separate one.


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Division by Product manufactured


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Division by Market


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Division by Geography

By location, used by internationalcompanies.


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Matrix Structure

Each employee reports to both a functionalor division manager and to a project or

group manager.


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Undocumented and officiallyunrecognized relationship betweenmembers of organization.

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