Professional Documents
Culture Documents
Structure
and Design
Chapter 15
Learning Objectives
1.
2.
3.
4.
5.
6.
Basic Concepts
Organizational Structure:
Structure The formal
configuration between individuals and
groups with respect to the allocation of
tasks, responsibilities, and authorities
within organizations.
Organizational Chart:
Chart A diagram
representing the connections between the
various departments within an
organization: a graphic representation of
organizational design.
Copyright 2003,
Sample Organizational
Chart
Copyright 2003,
Structure Concepts I
Hierarchy of Authority:
Authority A configuration of
the reporting relationships within
organizations; that is, who reports to
whom.
Division of Labor:
Labor The process of dividing
the many tasks performed within an
organization into specialized jobs.
Span of Control:
Control The number of
subordinates in an organization who are
supervised by an individual manager.
Copyright 2003,
Modern Trends:
Delayering
Copyright 2003,
Division of Labor
Copyright 2003,
Copyright 2003,
Structure Concepts II
Line Positions:
Positions Positions in organizations in
which people can make decisions related to doing
its basic work.
Staff Positions:
Positions Positions in organizations in
which people make recommendations to others
but who are not themselves involved in making
decisions concerning the organizations day-today operations.
Decentralization:
Decentralization The extent to which authority
and decision making are spread throughout all
levels of an organization rather than being
reserved exclusively for top management
(centralization).
Copyright 2003,
Decentralization
Copyright 2003,
10
Departmentalization
The process of breaking up organizations into
coherent units.
Functional Organization:
Organization The type of
departmentalization based on the activities or
functions performed (e.g., sales, finance).
Product Organization:
Organization The type of
departmentalization based on the products (or
product lines) produced.
Matrix Organization:
Organization The type of
departmentalization in which a product or project
form is superimposed on a functional form.
Copyright 2003,
11
Functional Organization
Copyright 2003,
12
Product Organization
Copyright 2003,
13
Matrix Organization
Copyright 2003,
14
Organizational Design
The
15
Copyright 2003,
16
Copyright 2003,
17
Copyright 2003,
18
Copyright 2003,
19
Design Effectiveness
Copyright 2003,
20
Mintzbergs Framework
21
Copyright 2003,
22
Mintzberg: Organizational
Designs I
Simple Structure:
Structure An organization characterized as
being small and informal, with a single powerful
individual, often the founding entrepreneur, who is
in charge of everything.
Machine Bureaucracy:
Bureaucracy An organizational form in
which work is highly specialized, decision making
is concentrated at the top, and the work
environment is not prone to change (e.g., a
government office).
Professional Bureaucracy:
Bureaucracy Organizations (e.g.,
hospitals and universities) in which there are lots of
rules to follow, but employees are highly skilled and
free to make decisions on their own.
Copyright 2003,
23
Mintzberg: Organizational
Designs II
Divisional Structure:
Structure The form used by many
large organizations, in which separate
autonomous units are created to deal with entire
product lines, freeing top management to focus
on large-scale, strategic decisions.
Adhocracy:
Adhocracy A highly informal, organic
organization in which specialists work in teams,
coordinating with each other on various projects
(e.g., many software development companies).
Copyright 2003,
24
Mintzberg: A Summary
Copyright 2003,
25
Boundaryless Organization
An organization in which chains of command are
eliminated, spans of control are unlimited, and rigid
departments give way to empowered teams.
Modular Organization:
Organization An organization that
surrounds itself by a network of other organizations
to which it regularly outsources noncore functions.
Virtual Organization:
Organization A highly flexible, temporary
organization formed by a group of companies that
join forces to exploit a specific opportunity.
Affiliate Networks:
Networks Satellite organizations affiliated
with core companies that have helped them
develop.
Copyright 2003,
26
Boundaryless Organization
Copyright 2003,
27
Modular Organization
Copyright 2003,
28
Virtual Organization
Copyright 2003,
29
Interorganizational
Designs
Organizational designs in which two or more
organizations come together.
Conglomerates:
Conglomerates A form of organizational
diversification in which an organization
(usually a very large, multinational one) adds
an entirely unrelated business or product to
its organizational design.
Strategic Alliance:
Alliance A type of
interorganizational design in which two or
more separate companies combine forces to
develop and operate a specific business.
Copyright 2003,
30
Strategic Alliances
31
Continuum of Alliances
Copyright 2003,
32