2
Summary of Lecture 29- Emotions and Moods
- Sources of Emotions and Moods
- External constraints on Emotions
- Impact of emotional labor on employees
- Affective Events Theory
- Emotional Intelligence
- OB Issues and Emotions
- OB Issues and Moods
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice HallRobbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
3
Learning Objectives
- Organizational Structure
- Characteristics of Bureaucracy
- Describe Matrix Organization
- Why managers want to create boundary-less organizations
- List the factors that favor different organizational structure
- Explain behavioral implications of different organizational structures
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
4
What Is Organizational Structure?
- How job tasks are formally divided, grouped, and coordinated
Work specializationTo what degree are activities subdivided into separate jobs?
DepartmentalizationOn what basis will jobs be grouped together?
Chain of commandTo whom do individuals and groups report?
Span of controlHow many individuals can a manager efficiently and effectively direct?
Centralization and decentralization
Where does decision making authority lie?
FormalizationTo what degree will there be rules and regulations to direct employees and managers?
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
5
Work SpecializationHenry Ford earned fortune by building automobile on assembly lines
Every workers was assigned a specific and repetitive task
Breaking jobs into small and standardized tasks he was able to produce a car in 10 seconds
Employees having limited skills
Productivity increases in short run if employees perform repetitive tasks
Employee attain highest level of expertise
The concept gained popularity as division of labor and work specialization
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
6
Work SpecializationEach individual perform specific activity of job in which he specializes
Less time require for changing tasks
It is easier for organization to train and attract worker to do specific and repetitive tasks
Work specialization increases efficiency by introduction of innovative machinery
Later on it was found that repetitive tasks result into boredom, fatigue, stress, low level of productivity and increased absenteeism
Still this approach is in practice and offer economies in several jobs. For example McDonald, Car Manufacturer
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
7
Work Specialization
Work specialization offer benefits but later on it reaches to point of diminishing
It is believed that job enlargement offer greater efficiencies
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
8
DepartmentalizationAfter division of jobs through work specialization it is needed to group these jobs together so common and dependent tasks can be coordinated
Departmentalization is used to group jobs
Group activities is often based on functions performed
Manufacturing Organization might group jobs in departments like engineering, finance, production, purchase, and HR (personnel administration)
Departmentalization by functions is every where and in every organization
Jobs can also be departmentalized by the type of product the organization produces (FMCG often use this)
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
9
DepartmentalizationDepartmentalization by geography or territory (region)
In Process departmentalization jobs are grouped into departments specializes in specific phase in the production
For example: Aluminum tubing plant can be departmentalized in casting, press, tubing finishing and inspecting.
Process formula is also applicable in service sector. NADRA, LICENCE Office
Customer based departmentalization
Microsoft uses this type of grouping to reach to particular customers having distinct set of needs. Large corporations, small business, home users
Large corporations may use all type of departmentalization
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
10
Chain of CommandThe chain of command can be describes as unbroken line of authority from top management to lower staff in which every body is clear to whom report and seek directions
Authority: Refers to the right inherit in management position to give orders and expect orders to be obeyed
Each manager in organization is given authority to perform his job responsibility
Unity of Command: It means individual should have only one superior to whom that person report and responsible
The concept of chain of command is diminishing in organizational design with the development in technology and information tools
The concept of empowering employees also contradict chain of command design. Team work and Self management team and concept of multiple bosses eliminating this concept
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
11
Span of ControlHow many employees can each manager efficiently and effectively direct?
Span of control determines number of managers and level of management in the organization
Wider span means more employees under control/supervision. In other fewer managers are needed to run the organization
At the same time wider span means ineffective or less supervision and control
Narrow span result into more close supervision
At the same time disadvantage with narrow span of control is i) Salary budget increases ii) Vertical communication becomes more complex and iii) discourage employee autonomy
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
12
Span of ControlIn recent years, wider span of control is gaining acceptance because of certain reasons given as follows
Reduce cost, increase flexibility, speed up decision making, and empower employees
Organizations are investing on training of employees to decrease likelihood of ineffectiveness inherit in wider span of control design
Because trained employees can perform their work with efficiency and can handle problems at their own or can consult colleagues
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
13
Centralization and Decentralization
In past organizations were more centralized, however in recent years decentralization is more common
Centralization means degree to which decision making power is concentrated at single point
It includes concept of formal authority
If employees is consulted or given authority to make decision, the organization is more decentralized
Decentralization offer certain benefits
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
14
FormalizationFormalization means degree to which jobs in the organization are standardized
In case of formalization, job incumbent has very little discretion on his work. What, when and how it is to be done
In formalized job clear cut organizational rules and policies that determine job behavior and tasks. Standard operating procedures means clear guidelines what and how to perform job tasks means little deviation from standardized work behavior
Degree of formalization varies from job to job and form organization to organization. In some professions and jobs formalization works whereas in some professions less formalization is more effective way
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
15
Organizational DesignThe Bureaucracy
Disadvantages:
Interdepartmental conflicts
Strict rules and regulation at time does not answer the situation
Innovative and flexibility benefits are not there
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
16
Organizational DesignThe Matrix Organization
Combine two forms of departmentalization: functional and product
Employees in the matrix have two bosses their functional department manager and product manager
Example: University: Academic departments like Marketing, Finance, Economics are functional departmentalization and over which specific programs (product that is BS, MS, PhD) is overlaid on the function
Teacher of Marketing department teaching course at undergraduate level. He may report to Head of Marketing department and In-charge undergraduate program
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
17
Organizational DesignThe Matrix Organization
Advantages:Organizational goals gain value and priority
Better communication and more flexibility as organization grow and things get complex
Efficient allocation of specialist
Disadvantages Power struggle
Conflict when it is not clear to whom what to report
Reporting to more than one boss creates role ambiguity and role conflict
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
18
Organizational DesignThe Simple StructureIn simple structure low degree of formalization and departmentalization, wide span of control, centralized authority, one man decides things and two or three vertical levels
Also called simple structure
Example: Retail Store, Small private firms. Owner also Manager
Suitable for small business but when business grow it can be ineffective because it is near to impossible to make all decisions in the organization by one man. Assimilate and interpret all information. Control all employees
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
19
New Organizational Designs
Team Structure
When organizations use teams to organization work activities it is said to be horizontal organization or team structure
Organizations use cross functional and self managed teams
AdvantagesDecentralizationBreak departmental barriersEmployees are generalist and specialist as wellBetter decision making and problem solution
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
20
New Organizational Designs
The Virtual OrganizationWhy to own when you can rent?
Also called network or modular organization
Different companies having specialties in specific area come together to accomplish project
When large organization use the virtual structure they frequently outsource manufacturing
AdvantagesNot lasting organization to maintain, project completed team dismantleWide variety of skills and expertise are used at work. Example: Mega construction, P&G outsource its IT operations
Disadvantage: Issue of management control on business activities
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
21
Independent research and development firm
Factories in South Korea
Advertising agency
Commissioned sales representative
Executivegroup
Advertising agency
The Virtual Organization
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
22
New Organizational Designs
The Boundaryless OrganizationThe boundaryless organization seek to eliminate chain of command, little span of control, and empowered teams instead of departments, removing vertical hierarchies
Internal barriers across department can be reduced by transfer posting of employees in different department and using cross functional teams
External boundaries are eliminated by forming joint venture and strategic alliances
Information technology is encouraging and facilitating to realize the concept of boundary less organization
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
23
New Organizational Designs
We can categorized discussed designs into two extremes1 Mechanistic Model
- High specialization- Rigid departmentalization- Clear chain of command- Narrow span of control- Centralization- High formalization
2 Organic Model- Cross functional teams- Cross hierarchical teams- Free flow of information- Wide span of control- Decentralization- Low formalization
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
24
Organizational Designs
The question arises why different organizations follow different structures?What are the forces that influence organizational design?
Strategy
Strategy Structural Options
Innovation Organic: Loose structure, low specialization, low formalization, decentralized
Cost minimization Mechanistic: tight control,, extensive, work specialization, high formalization, high centralization
Imitation Mechanistic and Organic: Mix of loose with tight properties, tight controls over current activities, and looser controls for new undertaking
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
25
Organizational Designs
Organization Size
Technology means how input s are transferred into out (Process: routine activities non routing activities)
EnvironmentStable and Dynamic environmentSimple and Complex
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
26
OB and Organizational Designs
Work specialization- Higher employee productivity at the cost reduced job satisfaction- Consider Individual differences
Span of Control- Wider span of control may result into employee satisfaction and higher performance - Consider Individual differences- How employees and managers feel
Centralization and Decentralization
To maximize employees satisfaction and productivity consider- Individual differences- Work task - National Culture - Individuals work for organization where they find themselves fit
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
27
Managerial Implications
Internal structure contribute in explaining and predicting individual behavior
Structure limits and control what employee do?
How employee perceive organizational structure it is more predictive of their behavior
Structure should be matched with strategy
Also consider other factors such as size, technology and environment before deciding structure
Whatever structure you choose employee and management should know what is objective and make it more clear that every body understand prevalent structure in the organization
Make easier to change the structure according to needs and situation
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
28
Discussion Question 1: What is purpose of organization design?
Discussion Question 2: In your opinion which organizational structure is best?
Discussion Question 3: If organization is pursuing innovative strategy which structure best fits?
Discussion Question 4: What is influence of organizational structure on work performance?
Discussion Questions
29
Summary
- Organizational Structure
- Characteristics of Bureaucracy
- Describe Matrix Organization
- Why managers want to create boundary-less organizations
- List the factors that favor different organizational structure
- Explain behavioral implications of different organizational structures
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall