1、Fundamentals of Management Tenth Edition Chapter 6 Organizational Structure and DesignLearning Objectives6.1 Describe six key elements in organizational design.6.2 Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.6.3 Compare and c
2、ontrast traditional and contemporary organizational designs.6.4 Discuss the design challenges faced by todays organizations.Learning Objectives 6.1 Describe six key elements in organizational design.Elements of Organizational Structure Work specialization Departmentalization Authority and responsibi
3、lity Span of control Centralization vs.decentralization FormalizationExhibit 6-1 SpecializationDepartmentalizationExhibit 6-2 Types of DepartmentalizationFunctionalGroups employees based on work performed(eg.,engineering,accounting,information systems,human resources)ProductGroups employees based on
4、 major product areas in the corporation(e.g.,womens footwear,mens footwear,and apparel and accessories)CustomerGroups employees based on customers problems and needs(e.g.,wholesale,retail,government)GeographicGroups employees based on location served(e.g.,north,south,Midwest,east)processGroups emplo
5、yees based on the basis of work or customer flow(e.g.,testing,payment)Types of Authority RelationshipsExhibit 6-3 Chain of Command and Line AuthorityLine and Staff AuthorityExhibit 6-4 Line versus Staff AuthorityUnity of CommandA structure in which each employee reports to only one managerOne boss o
6、r more?How Do Authority and Power Differ?Authority:a right whose legitimacy is based on an authority figures position in the organization;it goes with the job.Power:an individuals ability to influence decisions.Power Versus AuthorityExhibit 6-5 Authority versus PowerExhibit 6-6 Types of PowerCoerciv
7、e powerPower based on fear.Reward powerPower based on the ability to distribute something that others value.Legitimate powerPower based on ones position in the formal hierarchy.Expert powerPower based on ones expertise,special skill,or knowledge.Referent powerPower based on identification with a per
8、son who has desirable resources or personal traits.Span of ControlEffective and efficient span depends on:Employee experience and training(more they have,larger span)Similarity of employee tasks(more similarity,larger span)Complexity of those tasks(more complex,smaller span)Centralization and Decent
9、ralizationCentralization:decision making takes place at upper levels of the organization.Decentralization:lower-level managers provide input or actually make decisions.FormalizationHow standardized an organizations jobs are and the extent to which employee behavior is guided by rules and proceduresL
10、earning Objectives 6.2 Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.Models of Organizational DesignExhibit 6-7 Mechanistic versus Organic Organizations Rigid hierarchical relationships Fixed duties Many rules Formalized commun
11、ication channels Centralized decision authority Taller structures Collaboration(both vertical and horizontal)Adaptable duties Few rules Informal communication Decentralized decision authority Flatter structuresStrategy and StructureCertain structural designs work best with different organizational s
12、trategies:Simple strategySimple structureElaborate strategyMore complex structureSize and StructureOrganic:less than 2,000 employees can be organic.Mechanistic:more than 2,000 employees makes organizations to become moreTechnology and StructureEnvironment and Structure Stable environment:mechanistic
13、 structure Dynamic environment:organic structure Learning Objectives 6.3 Compare and contrast traditional and contemporary organizational designs.Exhibit 6-9 Traditional Organizational DesignsSource:Robbins,Stephen P.,Coulter,Mary,Management,13th Ed.,2016,p.304.Reprinted and electronically reproduce
14、d by permission of Pearson Education,Inc.,New York,NY.Functional StructureAn organizational design that groups similar or related occupational specialtiesDivisional StructureAn organizational structure made up of separate business units or divisionsExhibit 6-10 Contemporary Organizational DesignSour
15、ce:Robbins,Stephen P.,Coulter,Mary,Management,13th Ed.,2016,p.315.Reprinted and electronically reproduced by permission of Pearson Education,Inc.,New York,NY.Team StructureA structure in which the entire organization is made up of work teams that do the organizations workMatrix and Project Structure
16、sExhibit 6-11 Sample Matrix StructureProject StructureA structure in which employees continuously work on projectsBoundaryless OrganizationsAn organization whose design is not imposed by a predefined structureLearning Objectives 6.4 Discuss the design challenges faced by todays organizations.Current
17、 Organizational Design ChallengesChanging the way work is done Keeping employees connected Managing global structural issues Building a learning organization Designing flexible work arrangementsA Learning OrganizationExhibit 6-12 Characteristics of a Learning OrganizationSources:Based on P.M.Senge,T
18、he Fifth Discipline:The Art and Practice of Learning Organizations(New York:Doubleday,1990);and R.M.Hodgetts,F.Luthans,and S.M.Lee,“New Paradigm Organizations:From Total Quality to Learning to World Class,”Organizational Dynamics,Winter 1994,419.Flexible Work Arrangements Telecommuting Compressed workweek Flextime Job Sharing Contingent workers
