6 organizational structure and design

Chapter Organizational Structure and Design Contemporary Management 6-1 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 Contemporary Management 6-2 6.1 Describe six key elements in organizational design Contemporary Management 6-3 Elements of Organizational Structure • • • • • • Work specialization Departmentalization Authority and responsibility Span of control Centralization vs decentralization Formalization Contemporary Management 6-4 Specialization Contemporary Management 6-5 Departmentalization Contemporary Management 6-6 Types of Authority Relationships Contemporary Management 6-7 Line and Staff Authority Contemporary Management 6-8 Unity of Command A structure in which each employee reports to only one manager Contemporary Management 6-9 How Do Authority and Power Differ? Authority: Power: a right whose legitimacy an individual’s ability to is based on an authority influence decisions figure’s position in the organization; it goes with the job Contemporary Management 6-10 Strategy and Structure Certain structural designs work best with different organizational strategies Contemporary Management 6-18 Size and Structure Organic Less than 2,000 employees can be organic Mechanistic More than 2,000 employees makes forces organizations to become more mechanistic Contemporary Management 6-19 Technology and Structure Contemporary Management 6-20 Environment and Structure Stable environment: mechanistic structure Dynamic environment: organic structure Contemporary Management 6-21 6.3 Compare and contrast traditional and contemporary organizational designs Contemporary Management 6-22 Traditional Organizational Designs Contemporary Management 6-23 Contemporary Organizational Design Contemporary Management 6-26 Team Structure A structure in which the entire organization is made up of work teams that the organization’s work Contemporary Management 6-27 Matrix and Project Structures Contemporary Management 6-28 Project Structure A structure in which employees continuously work on projects Contemporary Management 6-29 Boundaryless Organizations An organization whose design is not imposed by a predefined structure Contemporary Management 6-30 6.4 Discuss the design challenges faced by today’s organizations Contemporary Management 6-31 Current Organizational Design Challenges • • • • Keeping employees connected Managing global structural issues Building a learning organization Designing flexible work arrangements Contemporary Management 6-32 A Learning Organization Contemporary Management 6-33 Flexible Work Arrangements • • • • • Telecommuting Compressed workweek Flextime Job Sharing Contingent workers Contemporary Management 6-34 ... of organizational design Contemporary Management 6- 16 Models of Organizational Design Contemporary Management 6- 17 Strategy and Structure Certain structural designs work best with different organizational. .. Compare and contrast traditional and contemporary organizational designs Contemporary Management 6- 22 Traditional Organizational Designs Contemporary Management 6- 23 Contemporary Organizational Design. .. Technology and Structure Contemporary Management 6- 20 Environment and Structure Stable environment: mechanistic structure Dynamic environment: organic structure Contemporary Management 6- 21 6. 3 Compare