ppt_ch08

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*

CHAPTER 8

ORGANISATION STRUCTURE

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*LECTURE OUTLINENature of organisation structureJob designTypes of departmentalisationMethods of vertical coordinationPromoting innovation(methods of horizontal coordination)


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*NATURE OF ORGANISATION STRUCTUREFormal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organisational goals.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*NATURE OF ORGANISATION STRUCTUREFour elements:Assignment of tasks and responsibilities to individuals and unitsClustering these to form a hierarchyMechanisms for vertical coordinationMechanisms for horizontal coordination


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*NATURE OF ORGANISATION STRUCTUREThe organisation chartLine diagram depicting broad outlines of an organisations structureThe chain of commandUnbroken line of command ultimately linking each individual with the top organisational position


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*NATURE OF ORGANISATION STRUCTUREPrinciples of chart design

As few hierarchical levels as possibleCharts should show who has authority over whoCharts should show official lines of responsibility & communication


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNWork SpecialisationDegree to which work is broken down into various jobsMost organisations require work specialisation, otherwise every employee would need to be able to perform every job


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNSpecification of task activities associated with a particular job

logical grouping of tasksdesign of jobs affects employee motivation


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNFour main approaches:

Job simplificationJob rotationJob enlargementJob enrichment


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNJob simplification

Process of configuring jobs so job-holders have only a small number of narrow activities to perform.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNJob rotation

Practice of periodically shifting workers through a set of jobs in a planned sequence.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNJob enlargementAllocation of a wider variety of similar tasks to a job to make it more challenging.

Job ScopeNumber of different tasks an employee performs in a particular job.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNJob enrichmentProcess of upgrading the job-task in order to increase significantly potential for growth, achievement, responsibility and recognition.Job depthJob characteristics model


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNJob characteristics model:Model developed to guide job-enrichment efforts.

Core job characteristicsCritical psychological statesOutcomes


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNCore job characteristics

Skill varietyTask identityTask significanceAutonomyFeedback


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*JOB DESIGNCritical psychological states:

Experienced meaningfulness of workExperienced responsibility for work outcomesKnowledge of the actual results of work


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*CORE JOB CHARACTERISTICSOutcomes

High internal work motivationHigh growth satisfactionHigh general job satisfactionHigh work effectiveness



skill variety experienced meaningfulnesstask identity of the work high internal worktask significance work motivation high growth autonomy experienced responsibility satisfaction for work outcomes high workfeedback from knowledge of results from effectiveness work activitiesCore JobCharacteristicsCriticalPsychological StatesOutcomesModerators:1.Knowledge & skill2.Growth need strength3.Context satisfactions


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*MANAGING DIVERSITY: ALTERNATIVE WORK SCHEDULESBalancing work and personal lifeFlexitime: core hours to be worked, more at employee discretionCompressed work week: longer hours worked per day, shorter working weekJob sharing: two or more people sharinga full-time job


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*MANAGING DIVERSITY: ALTERNATIVE WORK SCHEDULESSchedules based on adjustments in the normal work schedule rather than in thejob content.FlexitimeCompressed work weekJob sharing


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*DEPARTMENTALISATIONClustering individuals into units, and units into departments and larger units, to facilitate achieving organisational goals.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*DEPARTMENTALISATIONFunctional: based on expertise, skill & similarity of work activityDivisional: based on product or market similaritiesHybrid: someactivities grouped by function, some by products or marketsMatrix: Superimpose horizontal divisional over hierarchicalfunctional structure


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF VERTICAL COORDINATIONLinking of activities at the top of the organisation with those at the middle and lower levels to achieve organisational goals.

FormalisationSpan of managementCentralisation vs decentralisationDelegationLine & staff positions


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF VERTICAL COORDINATIONFormalisation:

Degree to which written policies, rules, procedures, job descriptions and other documents specify what actions are (not) to be taken under a given set of circumstancesExtent of formalisation tends to grow with age & size.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF VERTICAL COORDINATIONFactors influencing span of management:

High competence levelsLow interaction requirementsWork similarity (between organisational peers)Low problem frequency and seriousnessPhysical proximityFew non-supervisory duties of managersConsiderable available assistanceHigh motivational work possibilities


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF VERTICAL COORDINATIONCentralisationExtent to which power & authority are retained at the top organisational levelsDecentralisationExtent to which power & authority are delegated to lower levelsFactors favouring centralisationLarge organisational sizeGeographic dispersionTechnological complexityEnvironmental uncertainty


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF VERTICAL COORDINATIONExtent to which power and authority will be retained at upper levels. Influenced by:Large size: larger organisations likely to be more decentralised.Geographic dispersion: more dispersed likely to be decentralised, to enablecontrol at a number of sites.Technological complexity:with more complex technology, need to devolve authority to lower levels.

Environmental uncertainty:with rapid change, need for more employees to be involved in responding to challenges.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF VERTICAL COORDINATIONDelegationAssignment of part of a managers work to others, along with both responsibility & authority necessary to achieve expected resultsFactors restraining delegationFear of subordinate failureTime to train subordinatesEnjoy doing tasksRelease of authorityConcern for task performanceFear subordinate competence


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF VERTICAL COORDINATIONConfiguration of line and staff positions:Line authorityAuthority following the chain of command established by the formal hierarchyFunctional authorityAuthority of staff over others in the organisation in matters related directly to their respective functions e.g. HRM dept



METHODS OF HORIZONTALCOORDINATION

Horizontal coordination:Linking of activities across departments at similar levelsNeed for information processing across the organisationPromotes innovation through dissemination of ideas & information


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*METHODS OF HORIZONTALCOORDINATIONHorizontal coordination promoted by:Slack resourcesCushion of resources that facilitates adaptations to internal/external pressures, as well as initiation of changesInformation systemsOne information source for many usersLateral relationsDirect contact, liaison roles, task forces, teams


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*LECTURE SUMMARYThe nature of organisational structureDefinitionOrganisation chartJob designJob designDesigning for motivation: job enlargement, rotation, enrichment, simplificationTypes of departmentalisationFunctional, divisional, hybrid, matrix


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*LECTURE SUMMARYMethods of vertical coordination

Formalisation

Span of management

Centralisation vs decentralisation

Delegation

Line & staff authority


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin8*LECTURE SUMMARYMethods of horizontal coordination

Slack resources

Information systems

Lateral relations


*Page 252*Organising is important to managers because it is how they match work with resources so organisational plans and decisions can be made and effectively changed. However, an organising approach effective in one situation may be less so if the situation changes. As a result, organising is a constant management activity.Further discussion can be found on page 254.

*Organisation structure is the formal interactions and coordination patterns that management designs to link tasks of individuals and groups to achieve organisational goals.Further discussion can be found on pages 254-255.

*The organisation chart is a line diagram showing organisation structure in broad outline. Details differ but charts show major positions or departments. They also indicate their grouping into specific units, reporting relationships from lower to higher levels, and official communication channels. (See Figure 8.1 on page 256 of text.)Further discussion can be found on page 255.

*Page 255*Page 256*Different job types can involve very different activities. Most organisations could not operate without specialisation because without it, all members would need every skill to run an effective organisation.Further discussion can be found on page 255.

*Job design is important to organising for two reasons. One is the logical grouping of task activities and the other is that the configuration, or design, of jobs influences employee motivation. When designing jobs, managers must consider efficiency and motivational issues to achieve effective performance.Further discussion can be found on page 255.

*Page 259*Jobs involved in simplification are simple and repetitive, so workers are easy to train. However, there may be negative effects such as boredom, low job satisfaction, absenteeism, turnover, sabotage and inflexible customer service.Further discussion can be found on page 259.

*Job rotation may be useful in employee development, i.e. employees increase their capabilities and job assignment flexibility, building their grasp of many organisation aspects as they rotate through more challenging jobs. There are possible negative aspects however, as employees quickly learn new simple jobs and get bored again.Further discussion can be found on page 259.

*Page 259*Pages 259-260*Pages 260-261*Page 261*Page 261*Page 261*Page 261*Related to Job Design is setting Alternative Work schedules, based on adjusting work schedules instead of content or activities. The approach increases workers job satisfaction and motivation by setting schedules favouring workforce flexibility by balancing work and personal life. Alternative work schedules help workers juggle work and family responsibilities.Further discussion can be found on page 262.

*Page 262*Pages 263-264*How individual jobs are arranged is an important dimension of organisation structure, and another is departmentalisation.Different patterns of departmentalisation are called organisation designs e.g. functional, divisional, hybrid and matrix.Further discussion can be found on pages 263-264.

*Pages 263-264*Without coordination, organisation parts cannot work together. For all designs, managers must focus on vertical and horizontal coordination to make the structure effective. Five major methods for vertical coordination are shown in this slide.Further discussion can be found on page 264.*Page 264*Pages 264-265*To improve vertical coordination, managers must consider the appropriate level of vertical centralisation, the extent to which power and authority will be kept at upper levels. The reverse of centralisation is decentralisation. Centralisation and decentralisation are a continuum, with degrees of delegation. Further discussion can be found on pages 266-267.

*Page 267*Another vertical coordination method closely related to centralisationdecentralisation is delegation. Along with delegation come authority, responsibility and accountability. Even within a centralised structure managers, must do some delegating since they cannot do all the work themselves.Further discussion can be found on page 267.

*Another issue related to vertical coordination is configuration of line and staff positions. A line position has authority and is responsible for reaching an organisations major goals. A staff positions primary purpose is giving line positions specialised expertise and assistance. (See Figure 8.5 on page 270 of text.)Further discussion can be found on pages 269-270.

*If all problems were handled vertically, organisations would be paralysed. Organisations facilitate horizontal coordination, linking activities across departments at similar levels. Horizontal coordination helps organisations process information and organisations must process more information when facing complex and/or changing technology, uncertainty and increased size.Further discussion can be found on page 272.

*Pages 272-273*Page 279*Page 279*Page 279

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