bb session 15 organizational structure

8/2/2019 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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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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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

bb session 15 organizational structure

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