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DivisionofLabour&CoordinationJ.Player,NewYorkTimesDivisionoflabourSubdivisionofworkintoseparatejobsassignedtodifferentpeopleCoordinationofworkInformalcommunicationFormalhierarchyStandardizationFormalizationGoals/outputsTraining/skillsWritingtopicsHowisyourorganizationstructured?Whoreportstowhom?Whydoyouthinkitisstructuredinthisway?Whatworks?Whatdoesn’twork?Whatwouldhelptheorganizationfunctionbettergiventhecontingenciesoforgstructure.OrganizationalStructureandDesignChapter16
DivisionofLabourDimension Low HighDegreeofspecialization Generaltasks HighlyspecializedtasksTypicalorganizationalsize Small LargeEconomicefficiency Inefficient HighlyefficientDIVISIONOFLABOUR:ASUMMARYOrganizationalStructureElementsSpanofControlCentralizationDepartment-alizationFormalizationElementsofOrganizationalStructureSpanofControlNumberofpeopledirectlyreportingtothenextlevelAssumescoordinationthroughdirectsupervisionWiderspanofcontrolpossiblewhen:withothercoordinatingmethodsemployeesperformsimilartaskstasksareroutineTallversusFlatOrganizations:ComparisonChiefExecutiveChiefExecutiveTallhierarchyFlathierarchyRelativelynarrowspanofcontrolRelativelywidespanofcontrolOrganizationalcrisesManagementdesireforcontrolIncreaseconsistency,reducecostsCentralizationComplexity—size,diversityDesireforempowermentDecentralizationForcesfor(De)centralizationLowDecentralization Highdecentralization(Highcentralization) (lowcentralization)Eliminatestheadditionalrespon- Caneliminatelevelsofmanagement,sibilitynotdesiredbypeople makingaleanerorganizationperformingroutinejobsPermitscrucialdecisionstobe Promotesgreateropportunitiesformadebyindividualswhohave decisionstobemadebypeopleclosestthe“bigpicture” toproblemsDECENTRALIZATION:BENEFITSWHENLOWANDWHENHIGHFormalizationThedegreetowhichorganizationsstandardizebehaviourthroughrules,procedures,formaltrainingandrelatedmechanisms.Strengthsandlimits?Mechanisticvs.OrganicStructuresMechanisticHighformalizationNarrowspanofcontrolHighcentralizationOrganicLowformalizationWidespanofcontrolLowcentralization StructureDimension Mechanistic OrganicStability Changeunlikely ChangelikelySpecialization Manyspecialists ManygeneralistsFormalrules Rigidrules ConsiderableflexibilityAuthority Centralizedin Decentralized,diffused fewtoppeople throughoutthe organization
MECHANISTICVERSUSORGANICDESIGNS:Abird’seyeviewEffectsofDepartmentalizationHowareemployeesandtheiractivitiesgroupedtogether?AreasofcommonsupervisionEstablishesworkteamsandsupervisionstructureCreatescommonresources,measuresofperformance,etcEncouragesinformalcommunicationamongpeopleandsubunits5puretypesofdepartmentalization…SimpleFewemployeesreportingdirectlytooneperson(owner)OwnerEmployeeEmployeeEmployeeOrganizesemployeesaroundskillsor
otherresources(marketing,production)CreatesubordinategoalsFunctionalOrganizationalStructurePresidentFinanceProductionMarketingOrganizesemployeesaroundoutputs,
clients,orgeographicareasDivisionalizedStructurePresidentEnterpriseSystemsLaserjetSolutionsConsumerProductsProjectCManagerProjectBManagerProjectAManagerEngineeringManagerMarketingManagerSoftwareManagerEmployeesaretemporarilyassignedtoaspecific
projectteamandhaveapermanentfunctionalunitProject-BasedMatrixStructurePresidentHYBRIDstructuresPartsarecombinedtomaintainbalanceofpowerandeffectivenessacrossfunctional,product,geographicandclientfocusedunitsFeaturesofTeam-BasedStructuresStructureisbuiltaroundSelf-directedworkteamsratherthanindividualsTeamsorganizedaroundworkprocessesVeryflatspanofcontrolVerylittleformalizationMostsupervisoryactivitiesaredelegatedtotheteamUsuallyfoundwithindivisionalizedstructureVeryresponsiveandflexible;empowermentishigh;reducedneedformanagers;timeconsuming;ambiquityCore
Firm
(Canada)Product
Development
Firm
(France)Marketing
Firm
(U.K.)Customer
Service
Firm
(U.S.A.)Production
Firm
(China)Accounting
Firm
(Canada)Network/VirtualOrganizationalStructureContingenciesOrganizationalsizeTechnologyExternalenvironmentOrganizationalstrategyHighAnalyzabilityLowAnalyzabilityHighVarietyLowVarietyScientificResearchAssemblyLineSkilledTradesEngineeringProjectsTypesofOrganizationalTechnologyOrg.Environment&StructureDynamic? Highrateofchange? Useteam-based,network,orotherorganicstructureStable? Steadyconditions,predictablechange? UsemechanisticstructureComplex? Manyelements(suchasstakeholders)? DecentralizeSimple? Fewenvironmentalelements? LessneedtodecentralizeOrg.Environment&Structure(con’t)Diverse? Varietyofproducts,clients,locations? Divisionalformalig
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