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CINDHY DWI ATRIANI
Group 3 MGT 1
Gladys Pratiwi Febryani sitanggang Thieu Quang trung aka beanTran ngoc phu aka bob
DEFINING ORGANIZATIONAL STRUCTURE
Organizing the process of creating an organization’s structure
Organizational structure the proper arrangement of jobs within an
organization
Organizational design the developing of an organization’s structure
SIX KEY ELEMENTS OF AN ORGANIZATION
work specialization
departmentalization
chain of command
span of control
centralization and
decentralization
formalization
WORK SPECIALIZATION
the dividing work activities in an organization into separate job tasks
increased productivity
it could create human diseconomies
DEPARTMENTALIZATION
the basis by which job are grouped together
functional groups jobs by functions performed
product groups jobs by product line
DEPARTMENTALIZATION
geographical
groups jobs on the basis of territory or geography
process groups jobs on the basis of product or
customer flow
customer
groups jobs on the basis of specific customer
CHAIN OF COMMAND
the continues line of authority that move from upper to the lowest level of an organization and clarifies who report to whom
authority
the right inherent in a managerial position to tell people
what to do and to expect them to do it
CHAIN OF COMMAND
responsibility
the obligation to perform any assigned duties
unity of command a person should only report to only one manager
number of employees that a manager can efficiently and effectively manage
determines the number of levels and managers in an organization
the wider the span, the more efficient the organization
SPAN OF CONTROL
appropriate span influenced by:
the skills and abilities of employees
the complexity of tasks performed
availability of standardized procedures
SPAN OF CONTROL
CENTRALIZATION & DECENTRALIZATION
Centralization
the degree to which decision making is concentrated at a single point in the organization
Decentralization
the degree to which decisions are made by lower level employees
FORMALIZATION
the degree to which jobs within the organization are standardized
extent to which employee behavior is guided by rules and procedures
rigidly and tightly controlled
structure tries to minimize the impact of
differing human traits most large organizations have some
mechanistic characteristicsMECHANISTIC ORGANIZATIO
N
highly adaptive and flexible structure
permits organization to change when the need arises
employees are highly trained and empowered to handle
diverse job activities
minimal formal rules and little direct supervision
ORGANIC ORGANIZA
TION
MECHANISTIC AND ORGANIC ORGANIZATION
Mechanistic
Rigid departmentalization
Clear chain of command
Narrow spans of control
Centralization
High formlization
Organic
Cross-hierarchical teams
Free flow information
Wide spans of control
Decentralization
Low information
STRATEGY AND STRUCTURE
Structure should facilitate the achievement of goals
Strategy and structure should be closely linked
Strategy focuses on innovation, cost minimization, imitation
Innovation
need the flexibility and free flow of information of the organic structure
Cost minimization seek efficiency, ability, and tight control of
mechanistic structure
Imitation use structural characteristic of both
mechanistic and organic structures
STRATEGY AND STRUCTURE
TECHNOLOGY AND STRUCTURE
converts inputs into outputs
mechanistic structure supports routine technology
organic structure supports nonroutine technology
unit production
production of items in units or small batches
mass production
large-batch manufacturing
process production
continuous-process production
TECHNOLOGY AND STRUCTURE
ENVIRONMENTAL UNCERTAINTY AND STRUCTURE
one way to reduce environmental uncertainty is to adjust the organization’s structure
with greater stability, mechanistic structures are more effective
the greater the uncertainty, the greater the need for an organic structure
SIMPLE STRUCTURE
low departmentalization, wide spans of control, authority centralized in a single person, and little formalization
as organizations increase in size, the structure tends to become more specialized and formalized
Commonly used by small business
DIVISIONAL STRUCTURE
composed of separate divisions
Each division has relatively limited autonomy
Parents corporation acts as an external overseer to coordinate and control the divisions
Team Structures Matrix and Project Structures The Boundaryless Organization
CONTEMPORARY ORGANIZATIONAL DESIGNS
TEAM STRUCTURES
entire organization is made up of work teams
Employee empowerment is crucial
Teams responsible for all work activity and performance
Complements functional or divisional structures in large organizations
CONTEMPORARY ORGANIZATIONAL DESIGNS
Team Structure
• What it is: A structure in which the entire organization is made up ofwork groups or teams.• Advantages: Employees are more involved and empowered. Reducedbarriers among functional areas.• Disadvantages: No clear chain of command. Pressure on teams to perform
MATRIX AND PROJECT STRUCTURES
Matrix
assigns specialists from different functional departments to work on projects led by project managers
Project
employees work continuously on projects
adds vertical dimension to the traditional horizontal functional departments
creates a dual chain of command
employees do not return to a functional department at the conclusion of a project
all work performed by teams comprised of employees with appropriate skills and abilities
tends to be very fluid and flexible
MATRIX AND PROJECT STRUCTURES
Matrix Project
CONTEMPORARY ORGANIZATIONAL DESIGNS
Matrix-Project Structure
What it is: A structure that assigns specialists from different functional areas to work on projects but who return to their areas when the project is completed. Project is a structure in whichemployees continuously work on projects. As one project iscompleted, employees move on to the next project.• Advantages: Fluid and flexible design that can respond to environmental changes. Faster decision making.• Disadvantages: Complexity of assigning people to projects. Task and personality conflicts.
THE BOUNDARY LESS ORGANIZATION
design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure
Virtual organization
Network organization
Virtual organization
Consist of a small core of full time employees and hire outside specialist temporarily as needed to work on projects
Network organization
Uses its own employees to do some work activities and networks of outside suppliers to provide other needed product component or work process
THE BOUNDARY LESS ORGANIZATION
CONTEMPORARY ORGANIZATIONAL DESIGNS
Boundaryless Structure
What it is: A structure that is not defined by or limited to artificialhorizontal, vertical, or external boundaries; includes virtualand network types of organizations.• Advantages: Highly flexible and responsive. Draws on talent whereverit’s found..• Disadvantages: Lack of control. Communication difficulties..
TODAY’S ORGANIZATION DESIGN CHALLENGES
Keeping Employees Connected
Building a Learning Organization
Managing Global Structural Issues
TERMS TO KNOW
Organizational structure
Organizational design
Work specialization
Departmentalization
Functional dept
Product dept
Geographical dept
Process dept
Customer dept
Chain of command
Authority
Responsibility
Unity of command
Span of control
Centralization
Decentralization
Formalization
Mechanistic
Organic
Strategy and Structure
Innovation
Cost minimization
Imitation
Size and structure
Technology and structure
Unit production
Mass production
Process production
Simple structure
Functional structure
Divisional structure
Team structure
Matrix and project
Boundary less organization
Virtual organization
Network organization
TERMS TO KNOW