bb session 15 organizational structure
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Organizational Structure andCulture
Presented By
Susmita BhattacharyaWLC-Kolkata Campus
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Objectives
Identify the factors that influence managers choice ofan organizational structure.
Explain how managers group tasks into jobs that aremotivating and satisfying for employees.
Describe the types of organizational structuresmanagers can design, and explain why they chooseone structure over another.
Explain how managers group tasks into jobs that aremotivating and satisfying for employees.
Describe the types of organizational structuresmanagers can design, and explain why they chooseone structure over another.
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Organizational Structure
The organizational structure, controlsystems, culture, and human resourcemanagement systems that together
determine howefficiently and effectively organizationalresources are used.
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Factors Affecting OrganizationalStructure
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The Organizational Environment
Strategy
Different strategies require the use ofdifferent structures.
A differentiation strategy needs a flexiblestructure, low cost may need a more formalstructure.
Increased vertical integration or
diversification also requires a more flexiblestructure.
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The Organizational Environment
Technology
*The combination of skills, knowledge, tools,equipment, computers and machines used in the
organization.* More complex technology makes it harder for
managers to regulate the organization.
Technology can be measured by:
*Task variety: the number of new problems amanager encounters.
*Task analyzability: the availability of programmedsolutions to a manager to solve problems.
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The Organizational Environment
Human Resources
Highly skilled workers whose jobs require workingin teams usually need a more flexible structure.
Higher skilled workers often have internalizedprofessional norms and values.
Managers must take into account all four factors(environment, strategy, technologyand human resources) when designing the
structure of the organization.
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Organizations Structure
The way an organizations structure worksdepends on the choices managers makeabout:
1. How to group tasks into individual jobs2. How to group jobs into functions and divisions
3. How to allocate authority and coordinatefunctions and divisions
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The Job Characteristics Model
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Job Characteristics Model
Job Characteristic
Skill variety Employee uses a wide range of skills.
Task identity Worker is involved in all tasks of the job
from beginning to end of the productionprocess
Task significance Worker feels the task is meaningful toorganization.
Autonomy Employee has freedom to schedule tasksand carry them out.
Feedback Worker gets direct information about howwell the job is done.
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Grouping Jobs into Functions
Functional StructureAn organizational structure composed of all thedepartments that an organization requires to produceits goods or services.
Divisional Structure
Managers create a series of business units to producea specific kind of product for a specific kind ofcustomer.
Product StructureManagers place each distinct product line or businessin its own self-contained divisionDivisional managers have the responsibility fordevising an appropriate business-level strategy toallow the division to compete effectively in itsindustry
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Matrix Design Structure
Matrix Structure
An organizational structure that simultaneouslygroups people and resources by function and product.
Results in a complex network of superior-
subordinate reporting relationships. The structure is very flexible and can respond
rapidly to the need for change.
Each employee has two bosses (functionalmanager and product manager) and possibly
cannot satisfy both.
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Matrix Structure
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Coordinating Functions:Allocating Authority
Authority
The power vested in a manager to makedecisions and use resources to achieveorganizational goals by virtue of his position inan organization
Hierarchy of Authority
An organizations chain of command, specifyingthe relative authority of each manager.
Span of Control: the number ofsubordinates who report directly to amanager
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Tall and Flat Organizations
Tall structures have many levels of authority andnarrow spans of control.
As hierarchy levels increase, communication getsdifficult creating delays in the time being takento implement decisions.
Communications can also become distorted as it isrepeated through the firm.
Can become expensive.
Flat structures have fewer levels and wide spansof control.
Structure results in quick communications butcan lead to overworked managers
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Organizational Culture
Shared set of beliefs, expectations, values, andnorms that influence how members of anorganization relate to one another and cooperateto achieve organizational goals.
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Organizational Ethics
Organizational Ethics
Moral values, beliefs, and rules that establishthe appropriate way for an organization and
its members to deal with each other andpeople outside the organization.
Ultimate source of organizational culture is thepeople that make up the organization
Members become similar over time which mayhinder their ability to adapt and respond tochanges in the environment
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Employment Relationship
Human resource policies:
Can influence how hard employees will work toachieve the organizations goals,
How attached they will be to it
Whether or not they will buy into its values andnorms
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Human Resource Policies
In a centralized organization: people have little autonomy
norms that focus on being cautious, obeying
authority, and respecting traditions emerge predictability and stability are desired goals
In a flat, decentralized structure: people have more freedom to choose and control
their own activities
norms that focus on being creative andcourageous and taking risks appear
gives rise to a culture in which innovation andflexibility are desired goals
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Strong, Adaptive Cultures VersusWeak, Inert Cultures
Adaptive cultures
Values and norms help an organization to buildmomentum and to grow and change as needed
to achieve its goals and be effective.
Inert cultures
Those that lead to values and norms that fail to
motivate or inspire employees Lead to stagnation and often failure over time
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THANK YOU
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