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Copyright©2015PearsonEducation,Inc.6-1Chapter6OrganizationalStructureandDesign

LearningOutcomesDescribesix

keyelementsinorganizationaldesign.Identifythecontingencyfactorsthatfavoreitherthemechanisticmodelortheorganicmodeloforganizationaldesign.Compareandcontrasttraditionalandcontemporaryorganizationaldesigns.Discussthedesignchallengesfacedbytoday’sorganizations.Copyright©2015PearsonEducation,Inc.6-2Copyright©2015PearsonEducation,Inc.6-36.1Describesixkeyelementsinorganizationaldesign.SpecializationCopyright©2015PearsonEducation,Inc.6-5DepartmentalizationCopyright©2015PearsonEducation,Inc.6-6TypesofAuthorityRelationshipsCopyright©2015PearsonEducation,Inc.6-7UnityofCommand

Astructureinwhicheachemployeereportstoonlyonemanager.6-9Copyright©2015PearsonEducation,Inc.HowDoAuthorityandPowerDiffer?Authority:arightwhoselegitimacyisbasedonanauthorityfigure’spositionintheorganization;itgoeswiththejobPower:anindividual’sabilitytoinfluencedecisionsCopyright©2015PearsonEducation,Inc.6-10PowerVersusAuthorityCopyright©2015PearsonEducation,Inc.6-11SpanofControlMosteffectiveandefficientspandependson:Employeeexperienceandtraining(moretheyhave,largerspan).Similarityofemployeetasks(moresimilarity,largerspan).Complexityofthosetasks(morecomplex,smallerspan).Copyright©2015PearsonEducation,Inc.6-13Centralization&DecentralizationCentralizationdecisionmakingtakesplaceatupperlevelsoftheorganizationDecentralizationlower-levelmanagersprovideinputoractuallymakedecisionsCopyright©2015PearsonEducation,Inc.6-14Formalization Howstandardizedanorganization’sjobsareandtheextenttowhichemployeebehaviorisguidedbyrulesandprocedures.Copyright©2015PearsonEducation,Inc.6-15ModelsofOrganizationalDesignCopyright©2015PearsonEducation,Inc.6-17StrategyandStructure

Certainstructuraldesignsworkbestwithdifferentorganizationalstrategies.Copyright©2015PearsonEducation,Inc.6-18SizeandStructureMechanisticMorethan2,000employeesmakesforcesorganizationstobecomemoremechanistic.Copyright©2015PearsonEducation,Inc.6-19OrganicLessthan2,000employeescanbeorganic.EnvironmentandStructureStableenvironment:mechanisticstructureDynamicenvironment:organicstructureCopyright©2015PearsonEducation,Inc.6-21Copyright©2015PearsonEducation,Inc.6-226.3Compareandcontrasttraditionalandcontemporaryorganizationaldesigns.TraditionalOrganizationalDesignsCopyright©2015PearsonEducation,Inc.6-23DivisionalStructureAnorganizationalstructuremadeupofseparatebusinessunitsordivisions.Copyright©2015PearsonEducation,Inc.6-25ContemporaryOrganizationalDesign6-26Copyright©2015PearsonEducation,Inc.ProjectStructure6-29Copyright©2015PearsonEducation,Inc. Astructureinwhichemployeescontinuouslyworkonprojects.BoundarylessOrganizations

Anorganizationwhosedesignisnotimposedbyapredefinedstructure.Copyright©2015PearsonEducation,Inc.6-30Copyright©2015PearsonEducation,Inc.6-316.4Discussthedesignchallengesfacedbytoday’sorganizations.CurrentOrganizationalDesignChallengesKeepingemployeesconnectedManagingglobalstructuralissuesBuildingalearningorganizationDesigningflexibleworkarrangementsCopyright©2015PearsonEducation,Inc.6-32ALearningOrganizationCopyright

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