Org Structure & Design

Org Structure & Design

Org Structure & Design Ch 15 Apr 21, 2009 Structure Basic Dimensions Org structure formal structure betw groups & people of allocation of tasks, responsibilities, authority View w/org chart Shows formal lines of authority

2 basic requirements of org structure 1. 2. Coordination Options Can coordinate tasks by: Using informal communication Examples?

Use formal hierarchy (butlimited) Use of standardization Examples? Dimensions of Org Structure Hierarchy Division of Labor Span of Control Number of people reporting to ea manager Wide vs narrow

What is this linked to? Dimensions (cont.) Line v staff positions Decentralization Level of delegation of power Changes over time, as org grows What is often assumed v. what is best? Ways to structure orgs

Departmentalization how to organize units Functional orgs departmentalize by task Examples? Disadvantages? Product orgs departmentalize by output Examples? Disadvantages? Matrix Orgs

Matrix orgs employees report to both project/product manager & functional / division manager Combines function and product forms Use of dual authority structure When does this work well? Emerging forms of depts. Team-based (lateral) structure Very flat structure using cross-functional teams

Very little formalization w/ empowered teams Advantages? Disadvantages? Emerging forms Network structure (aka virtual org) Outsourcing noncritical functions to those w/expertise, core org coordinates process Example? Advantages? Disadvantages?

Org Design Process of coordinating the structure elements Range of theories Classical org theory assume one best way to design/structure org (early 1900s) What was presumed to be best? Neoclassical theory human relations focus w/goal of ee satisfaction

What was preferred? Org Design Contingency Approaches Lawrence& Lorsch (1969) Design depends on orgs environment Including economy, competitors, geography, suppliers, workforce Studies comparing orgs in stable v unstable

environments resulted in what models? Org Design Mechanistic Orgs stable environments with little change in product, market, or technology What is their strength? Organic Orgs unstable environments What are their features?

What is most effective, according to Lawrence & Lorsch? Mintzbergs Theory Orgs composed of 5 basic elements; which one is dominant determines most effective design for that situation

How are each defined? Operating Core: Strategic Apex: Middle Line: Technostructure:

Support Staff: Mintzberg (cont.) Mintzberg specifies 5 designs based on which of the 5 groups dominates How is each structured? 1) Simple structure: 2) Machine bureaucracy: 3) Professional bureaucracy: 4) Divisional structure:

5) Adhocracy:

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