Chapter 10 ORGANIZATION STRUCTURE For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Organization structure • Organization structure - the formal arrangement of task, communication and authority relationships that influence and control how people coordinate and conduct their work For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning The duality of structure Figure 10.1 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Organizational environments Figure 10.2 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Classic form of management Table 10.1 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Organization design • Organization design - the process by which managers select and manage aspects of an organization’s structure and culture so that the organization can control the activities necessary to achieve organizational goals For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning The challenges of organization design Three categories: • Appropriate horizontal and vertical division of labour through differentiating the tasks that various individuals and groups need to perform • Structurally integrating the actors and their activities and implementing mechanisms to enable constructive coordination and control • Determining the degree of centralization or decentralization of decision making For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Organization design Guidance has traditionally taken one of three forms: • Universalistic theories - scientific management and other classical management approaches • Contingency theories of organization - consider the impact of environmental, situational, or organizational factors • Configurational theories - more complex than contingency theories because they incorporate complex arrangements and equifinality For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Organizational height Figure 10.3 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Elements and principles of organizational structure and structuring • Horizontal differentiation • Vertical differentiation • Centralization and treatment of non-routine decisions • Communication, co-ordination and integration • Formalization and standardization • Job design For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Gouldner and bureaucracy : Gouldner (1954) suggested three types of bureaucracy: • Mock - The rules and procedures are largely ignored by all inside having been imposed on them by an outside agency • Punishment - a variant on the mock bureaucracy in that the rules are imposed on the workers by management • Representative - the rules and procedures are generally supported by those inside the organization having been developed by managers with the involvement of worker and stakeholder groups For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Mechanistic and organic organizations Table 10.4 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Reinforcing cycle for mechanistic and organic configurations Figure 10.11 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Metaphors of organizations Table 10.5 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Mintzberg’s organizational parts Figure 10.12 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Mintzberg’s coordinating mechanisms used in organizations Table 10.6 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Mintzberg’s coordinating mechanisms Figure 10.13 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Mintzbergs common organizational forms Figure 10.14 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Mintzberg’s organizational parts • Strategic apex - reflects the top echelon of the hierarchy • Middle line - intermediate levels of management • Operating core - those involved in operations • Technostructure - specialist functions • Support staff - functions such as HR, maintenance, or facilities management • Ideology - the force for cooperation between the above parts For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Mintzberg’s common forms • • • • • • Entrepreneurial form (simple form) - central role for the strategic apex which directly controls activities in the operating core with little in terms of middle line, technostructure or support functions Machine form - the force for efficiency dominates with a large middle line as well as sizeable support staff and technostructure that create extensive standardization and formalization through rules and regulations Professional form - the force for proficiency leads and is often found in professional service organizations Adhocracy form - the force for creating novelty and innovation in in research organizations, political think tanks, advertising agencies and boutique consulting firms Heterarchy - meaning that different people and subunits are not ordered according to predetermined differences in formal authority (hierarchy) but rather all have the potential to be deployed as is seen fit and in accordance to the requirements of the particular tasks Diversified form - the force for concentration creates structure wich first diversifies across different domains (such as markets or products) and then divisionalizes by concentrating activities within the unit dealing with a particular domain For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning The Ambidextrous Organization • The challenge of successfully dealing with simultaneous different forces or needs such as for stability and change, efficiency and innovation, and control and responsiveness has long been a central concern of organization designers and theorists For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning The Ambidextrous Organization • Ambidextrous organizations are able to combine alignment and adaptability • Traditional structural solutions were based on structural ambidexterity but now also tend to incorporate contextual ambidexterity and leadership dimensions For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Comparing structural and contextual ambidexterity Table 10.7 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning Organizational lifecycle Quinn and Cameron (1983) • Entrepreneurial phase • Collectivity phase • Formalization phase • Elaboration phase Katz and Kahn, and Cameron et al • Organizational decline Whetten (1980) identified four response options to decline • Generating • Reacting • Defending • Preventing For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning The growing pains of an organization Figure 10.15 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2010 Cengage Learning [...]... organic configurations Figure 10. 11 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Metaphors of organizations Table 10. 5 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Mintzberg’s organizational parts Figure 10. 12 For use with Organizational Behaviour and... 1408018128© 2 010 Cengage Learning Matrix structure Figure 10. 7 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Project structure Figure 10. 8 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Contingency model of organization design Figure 10. 9 For use with Organizational. ..Functional organization structure Figure 10. 4 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Divisional organization structure Figure 10. 5 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Process-oriented structure Figure 10. 6 For use with Organizational. .. 2 010 Cengage Learning Mintzberg’s coordinating mechanisms used in organizations Table 10. 6 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Mintzberg’s coordinating mechanisms Figure 10. 13 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Mintzbergs common organizational. .. those inside the organization having been developed by managers with the involvement of worker and stakeholder groups For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Mechanistic and organic organizations Table 10. 4 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning... Comparing structural and contextual ambidexterity Table 10. 7 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Organizational lifecycle Quinn and Cameron (1983) • Entrepreneurial phase • Collectivity phase • Formalization phase • Elaboration phase Katz and Kahn, and Cameron et al • Organizational decline Whetten (1980) identified four... to decline • Generating • Reacting • Defending • Preventing For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning The growing pains of an organization Figure 10. 15 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning ... with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning The Ambidextrous Organization • The challenge of successfully dealing with simultaneous different forces or needs such as for stability and change, efficiency and innovation, and control and responsiveness has long been a central concern of organization designers and theorists For use with Organizational. .. 1408018128© 2 010 Cengage Learning The Ambidextrous Organization • Ambidextrous organizations are able to combine alignment and adaptability • Traditional structural solutions were based on structural ambidexterity but now also tend to incorporate contextual ambidexterity and leadership dimensions For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage... Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Mintzbergs common organizational forms Figure 10. 14 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Mintzberg’s organizational parts • Strategic apex - reflects the top echelon of the hierarchy • Middle line - intermediate levels of management ... equifinality For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Organizational height Figure 10. 3 For use with Organizational Behaviour... Figure 10. 11 For use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Metaphors of organizations Table 10. 5 For use with Organizational. .. use with Organizational Behaviour and Management by John Martin and Martin Fellenz 1408018128© 2 010 Cengage Learning Mintzbergs common organizational forms Figure 10. 14 For use with Organizational