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PowerPointPresentationbyCharlieCookCopyright2005PrenticeHall,Inc.Allrightsreserved.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,102,LEARNINGOUTLINEFollowthisLearningOutlineasyoureadandstudythischapter.,DefiningOrganizationalStructureDiscussthetraditionalandcontemporaryviewofworkspecialization.Describeeachofthefiveformsofdepartmentalization.Explaincross-functionalteams.Differentiatechainofcommand,authority,responsibility,andunityofcommand.Discussthetraditionalandcontemporaryviewsofchainofcommand.Discussthetraditionalandcontemporaryviewsofspanofcontrol.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,103,LEARNINGOUTLINE(contd)FollowthisLearningOutlineasyoureadandstudythischapter.,DefiningOrganizationalStructure(contd)Tellwhatfactorsinfluencetheamountofcentralizationanddecentralization.Explainhowformalizationisusedinorganizationaldesign.OrganizationalDesignDecisionsContrastmechanisticandorganicorganizations.Explaintherelationshipbetweenstrategyandstructure.Tellhoworganizationalsizeaffectsorganizationaldesign.DiscussWoodwardsfindingsintherelationshipoftechnologyandstructure.Explainhowenvironmentaluncertaintyaffectorganizationaldesign.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,104,LEARNINGOUTLINE(contd)FollowthisLearningOutlineasyoureadandstudythischapter.,CommonOrganizationalDesignsContrastthethreetraditionalorganizationaldesigns.Explainteam-based,matrix,andprojectstructures.Discussthedesignofvirtual,network,andmodularorganizations.Describethecharacteristicsofalearningorganization.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,105,DefiningOrganizationalStructure,OrganizationalStructureTheformalarrangementofjobswithinanorganization.OrganizationalDesignAprocessinvolvingdecisionsaboutsixkeyelements:WorkspecializationDepartmentalizationChainofcommandSpanofcontrolCentralizationanddecentralizationFormalization,Copyright2005PrenticeHall,Inc.Allrightsreserved.,106,OrganizationalStructure,WorkSpecializationThedegreetowhichtasksintheorganizationaredividedintoseparatejobswitheachstepcompletedbyadifferentperson.Overspecializationcanresultinhumandiseconomiesfromboredom,fatigue,stress,poorquality,increasedabsenteeism,andhigherturnover.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,107,DepartmentalizationbyType,FunctionalGroupingjobsbyfunctionsperformedProductGroupingjobsbyproductlineGeographicGroupingjobsonthebasisofterritoryorgeography,ProcessGroupingjobsonthebasisofproductorcustomerflowCustomerGroupingjobsbytypeofcustomerandneeds,Copyright2005PrenticeHall,Inc.Allrightsreserved.,108,OrganizationStructure(contd),ChainofCommandThecontinuouslineofauthoritythatextendsfromupperlevelsofanorganizationtothelowestlevelsoftheorganizationandclarifieswhoreportstowho.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,109,OrganizationStructure(contd),AuthorityTherightsinherentinamanagerialpositiontotellpeoplewhattodoandtoexpectthemtodoit.ResponsibilityTheobligationorexpectationtoperform.UnityofCommandTheconceptthatapersonshouldhaveonebossandshouldreportonlytothatperson.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1010,OrganizationStructure(contd),SpanofControlThenumberofemployeeswhocanbeeffectivelyandefficientlysupervisedbyamanager.Widthofspanaffectedby:SkillsandabilitiesofthemanagerEmployeecharacteristicsCharacteristicsoftheworkbeingdoneSimilarityoftasksComplexityoftasksPhysicalproximityofsubordinatesStandardizationoftasks,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1011,OrganizationStructure(contd),CentralizationThedegreetowhichdecision-makingisconcentratedatasinglepointintheorganizations.Organizationsinwhichtopmanagersmakeallthedecisionsandlower-levelemployeessimplycarryoutthoseorders.DecentralizationOrganizationsinwhichdecision-makingispusheddowntothemanagerswhoareclosesttotheaction.EmployeeEmpowermentIncreasingthedecision-making,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1012,OrganizationStructure(contd),FormalizationThedegreetowhichjobswithintheorganizationarestandardizedandtheextenttowhichemployeebehaviorisguidedbyrulesandprocedures.Highlyformalizedjobsofferlittlediscretionoverwhatistobedone.Lowformalizationmeansfewerconstraintsonhowemployeesdotheirwork.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1013,OrganizationalDesignDecisions,MechanisticOrganizationArigidandtightlycontrolledstructureHighspecializationRigiddepartmentalizationNarrowspansofcontrolHighformalizationLimitedinformationnetwork(downward)Lowdecisionparticipation,OrganicOrganizationHighlyflexibleandadaptablestructureNon-standardizedjobsFluidteam-basedstructureLittledirectsupervisionMinimalformalrulesOpencommunicationnetworkEmpoweredemployees,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1014,StructuralContingencyFactors,Structuraldecisionsareinfluencedby:OverallstrategyoftheorganizationOrganizationalstructurefollowsstrategy.SizeoftheorganizationFirmschangefromorganictomechanisticorganizationsastheygrowinsize.TechnologyusebytheorganizationFirmsadapttheirstructuretothetechnologytheyuse.DegreeofenvironmentaluncertaintyDynamicenvironmentsrequireorganicstructures;mechanisticstructuresneedstableenvironments.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1015,StructuralContingencyFactors(contd),StrategyFrameworks:InnovationPursuingcompetitiveadvantagethroughmeaningfulanduniqueinnovationsfavorsanorganicstructuring.CostminimizationFocusingontightlycontrollingcostsrequiresamechanisticstructurefortheorganization.ImitationMinimizingrisksandmaximizingprofitabilitybycopyingmarketleadersrequiresbothorganicandmechanisticelementsintheorganizationsstructure,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1016,StructuralContingencyFactors(contd),StrategyandStructureAchievementofstrategicgoalsisfacilitatedbychangesinorganizationalstructurethataccommodateandsupportchange.SizeandStructureAsanorganizationgrowslarger,itsstructuretendstochangefromorganictomechanisticwithincreasedspecialization,departmentalization,centralization,andrulesandregulations.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1017,StructuralContingencyFactors(contd),TechnologyandStructureOrganizationsadapttheirstructurestotheirtechnology.Woodwardsclassificationoffirmsbasedinthecomplexityofthetechnologyemployed:UnitproductionofsingleunitsorsmallbatchesMassproductionoflargebatchesofoutputProcessproductionincontinuousprocessofoutputsRoutinetechnology=mechanisticorganizationsNon-routinetechnology=organicorganizations,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1018,StructuralContingencyFactors(contd),EnvironmentalUncertaintyandStructureMechanisticorganizationalstructurestendtobemosteffectiveinstableandsimpleenvironments.Theflexibilityoforganicorganizationalstructuresisbettersuitedfordynamicandcomplexenvironments.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1019,CommonOrganizationalDesigns,TraditionalDesignsSimplestructureFunctionalstructureDivisionalstructure,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1020,OrganizationalDesigns,TraditionalDesignsSimplestructureLowdepartmentalization,widespansofcontrol,centralizedauthority,littleformalizationFunctionalstructureDepartmentalizationbyfunctionOperations,finance,humanresources,andproductresearchanddevelopmentDivisionalstructureComposedofseparatebusinessunitsordivisionswithlimitedautonomyunderthecoordinationandcontroltheparentcorporation.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1021,OrganizationalDesigns(contd),ContemporaryOrganizationalDesignsTeamstructuresTheentireorganizationismadeupofworkgroupsorself-managedteamsofempoweredemployees.MatrixandprojectstructuresSpecialistsfordifferentfunctionaldepartmentsareassignedtoworkonprojectsledbyprojectmanagers.Matrixparticipantshavetwomanagers.ProjectstructuresEmployeesworkcontinuouslyonprojects;movingontoanotherprojectaseachprojectiscompleted.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1022,OrganizationalDesigns(contd),ContemporaryOrganizationalDesigns(contd)BoundarylessOrganizationAnflexibleandunstructuredorganizationaldesignthatisintendedtobreakdownexternalbarriersbetweentheorganizationanditscustomersandsuppliers.Removesinternal(horizontal)boundariesEliminatesthechainofcommandHaslimitlessspansofcontrolUsesempoweredteamsratherthandepartmentsEliminatesexternalboundariesUsesvirtual,network,andmodularorganizationalstructurestogetclosertostakeholders.,Copyright2005PrenticeHall,Inc.Allrightsreserved.,1023,Removing

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