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© Pearson Education Limited 2015 6-1Chapter 6 Organizational Structure and Design... © Pearson Education Limited 2015 6-36.1 Describe six key elements in organizational design... How

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© Pearson Education Limited 2015 6-1

Chapter

6 Organizational

Structure and

Design

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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 today’s

organizations

© Pearson Education Limited 2015 6-2

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© Pearson Education Limited 2015 6-3

6.1

Describe six key elements in

organizational design

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© Pearson Education Limited 2015 6-5

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© Pearson Education Limited 2015 6-6

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Types of Authority Relationships

© Pearson Education Limited 2015 6-7

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Line and Staff Authority

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How Do Authority and Power

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Power Versus Authority

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Sources of Power

6-12

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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,

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Centralization & Decentralization

Centralization

decision making takes

place at upper levels of

the organization

Decentralization

lower-level managers provide input or actually make decisions

© Pearson Education Limited 2015 6-14

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How standardized an organization’s jobs are and the extent to which employee behavior is guided

by rules and procedures

© Pearson Education Limited 2015 6-15

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© Pearson Education Limited 2015 6-16

factors that favor either the mechanistic model

or the organic model of organizational design.

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Models of Organizational Design

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Strategy and Structure

Certain structural designs work best with

different organizational strategies

© Pearson Education Limited 2015 6-18

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Size and Structure

Mechanistic

More than 2,000 employees makes forces organizations to become more mechanistic

© Pearson Education Limited 2015 6-19

Organic

Less than 2,000

employees can be

organic

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Technology and Structure

© Pearson Education Limited 2015 6-20

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Environment and Structure

Stable environment: mechanistic structure

Dynamic environment: organic structure

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© Pearson Education Limited 2015 6-22

6.3 Compare and

contrast traditional and contemporary organizational

designs

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Traditional Organizational Designs

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Team Structure

6-27

© Pearson Education Limited 2015

A structure in which the entire organization is

made up of work teams that do the organization’s work

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Matrix and Project Structures

6-28

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Project Structure

6-29

© Pearson Education Limited 2015

A structure in which employees continuously work on projects

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6.4 Discuss the design

challenges faced by today’s

organizations.

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Current Organizational Design

Challenges

• Keeping employees connected

• Managing global structural issues

• Building a learning organization

• Designing flexible work arrangements

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A Learning Organization

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Flexible Work Arrangements

© Pearson Education Limited 2015 6-34

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© Pearson Education Limited 2015

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