PowerPoint Presentation by Charlie Cook Copyright 2005 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.,Defining Organizational Structure Discuss the traditional and contemporary view of work specialization. Describe each of the five forms of departmentalization. Explain cross-functional teams. Differentiate chain of command, authority, responsibility, and unity of command. Discuss the traditional and contemporary views of chain of command. Discuss the traditional and contemporary views of span of control.,2,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,Defining Organizational Structure (contd) Tell what factors influence the amount of centralization and decentralization. Explain how formalization is used in organizational design. Organizational Design Decisions Contrast mechanistic and organic organizations. Explain the relationship between strategy and structure. Tell how organizational size affects organizational design. Discuss Woodwards findings in the relationship of technology and structure. Explain how environmental uncertainty affect organizational design.,3,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,Common Organizational Designs Contrast the three traditional organizational designs. Explain team-based, matrix, and project structures. Discuss the design of virtual, network, and modular organizations. Describe the characteristics of a learning organization.,4,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Defining Organizational Structure,Organizational Structure The formal arrangement of jobs within an organization. Organizational Design A process involving decisions about six key elements: Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization,5,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Organizational Structure,Work Specialization The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person. Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.,6,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Departmentalization by Type,Functional Grouping jobs by functions performed Product Grouping jobs by product line Geographic Grouping jobs on the basis of territory or geography,Process Grouping jobs on the basis of product or customer flow Customer Grouping jobs by type of customer and needs,7,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Organization Structure (contd),Chain of Command The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to who.,8,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Organization Structure (contd),Authority The rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility The obligation or expectation to perform . Unity of Command The concept that a person should have one boss and should report only to that person.,9,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Organization Structure (contd),Span of Control The number of employees who can be effectively and efficiently supervised by a manager. Width of span affected by: Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks Physical proximity of subordinates Standardization of tasks,10,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Organization Structure (contd),Centralization The degree to which decision-making is concentrated at a single point in the organizations. Organizations in which top managers make all the decisions and lower-level employees simply carry out those orders. Decentralization Organizations in which decision-making is pushed down to the managers who are closest to the action. Employee Empowerment Increasing the decision-making,11,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Organization Structure (contd),Formalization The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures. Highly formalized jobs offer little discretion over what is to be done. Low formalization means fewer constraints on how employees do their work.,12,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Organizational Design Decisions,Mechanistic Organization A rigid and tightly controlled structure High specialization Rigid departmentalization Narrow spans of control High formalization Limited informa