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Copyright 2015 Pearson Education, Inc.,6-1,Chapter,6,Organizational Structure and Design,Learning Outcomes,Describe six key elements in organizational design. Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design. Compare and contrast traditional and contemporary organizational designs. Discuss the design challenges faced by todays organizations.,Copyright 2015 Pearson Education, Inc.,6-2,Copyright 2015 Pearson Education, Inc.,6-3,6.1,Describe six key elements in organizational design.,Elements of Organizational Structure,Work specialization Departmentalization Authority and responsibility Span of control Centralization vs. decentralization Formalization,6-4,Copyright 2015 Pearson Education, Inc.,Specialization,Copyright 2015 Pearson Education, Inc.,6-5,Departmentalization,Copyright 2015 Pearson Education, Inc.,6-6,Types of Authority Relationships,Copyright 2015 Pearson Education, Inc.,6-7,Line and Staff Authority,Copyright 2015 Pearson Education, Inc.,6-8,Unity of Command,A structure in which each employee reports to only one manager.,6-9,Copyright 2015 Pearson Education, Inc.,How Do Authority and Power Differ?,Authority: a right whose legitimacy is based on an authority figures position in the organization; it goes with the job,Power: an individuals ability to influence decisions,Copyright 2015 Pearson Education, Inc.,6-10,Power Versus Authority,Copyright 2015 Pearson Education, Inc.,6-11,Sources of Power,6-12,Copyright 2015 Pearson Education, Inc.,Span of Control,Most effective and efficient span depends on: Employee experience and training (more they have, larger span). Similarity of employee tasks (more similarity, larger span). Complexity of those tasks (more complex, smaller span).,Copyright 2015 Pearson Education, Inc.,6-13,Centralization & Decentralization,Centralization decision making takes place at upper levels of the organization,Decentralization lower-level managers provide input or actually make decisions,Copyright 2015 Pearson Education, Inc.,6-14,Formalization,How standardized an organizations jobs are and the extent to which employee behavior is guided by rules and procedures.,Copyright 2015 Pearson Education, Inc.,6-15,Copyright 2015 Pearson Education, Inc.,6-16,6.2,Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.,Models of Organizational Design,Copyright 2015 Pearson Education, Inc.,6-17,Strategy and Structure,Certain structural designs work best with different organizational strategies.,Copyright 2015 Pearson Education, Inc.,6-18,Size and Structure,Mechanistic More than 2,000 employees makes forces organizations to become more mechanistic.,Copyright 2015 Pearson Education, Inc.,6-19,Organic Less than 2,000 employees can be organic.,Technology and Structure,Copyright 2015 Pearson Education, Inc.,6-20,Environment and Structure,Stable environment: mechanistic structure Dynamic environment: organic structure,Copyright 2015 Pearson Education, Inc.,6-21,Copyright 2015 Pearson Education, Inc.,6-22,6.3,Compare and contrast traditional and contemporary organizational designs.,Traditional Organizational Designs,Copyright 2015 Pearson Education, Inc.,6-23,Functional Structure,An organizational design that groups similar or related occupational specialties.,Copyright 2015 Pearson Education, Inc.,6-24,Divisional Structure,An organizational structure made up of separate business units or divisions.,Copyright 2015 Pearson Education, Inc.,6-25,Contemporary Organizational Design,6-26,Copyright 2015 Pearson Education, Inc.,Team Structure,6-27,Copyright 2015 Pearson Education, Inc.,A structure in which the entire organization is made up of work teams that do the organizations work.,Matrix and Project Structures,6-28,Copyright 2015 Pearson Education, Inc.,Project Structure,6-29,Copyright 2015 Pearson Education, Inc.,A structure in which employees continuously work on projects.,Boundaryless Organizations,An organization whose design is not imposed by a predefined structure.,Copyright 2015 Pearson Education, Inc.,6-30,Copyright 2015 Pearson Education, Inc.,6-31,6.4,Discuss the design challenges faced by todays organizations.,Current Organizational Design Challenges,Keeping employees connected Managing global structural issues Building a learning organization Designing flexible work arrangements,Copyright 2015 Pearson Educat

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