Organizational StructureCommunication in Organizations
Prof. Dr. Jürgen BenekeSoSe 2003
Laura Hofman MiquelHanna Barst Jörg Petzold
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To organizational effectiveness and quality of working life contribute:
1. Individual factors
2. group factors
3. process factors
4. management factors
5. structural factors
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people’s attitude and behaviour are shaped
• by the structure of the company
• by the personalities that they possess
The demands of the job can dictate their behaviour and even change their personalities.
Interest of social scientists
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The intention of organization structure is :
1. to divide up organizational activities and allocate them to subunits
2. to co-ordinate and control these activities so that they achieve the aims of the organization.
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• Organization structure refers to the formal system of task and reporting relationships that controls, co-ordinates and motivates employees so that they work together to achieve organizational goals.
• “Organization structure is more than boxes on a chart; it is a pattern of interactions and co-ordination that links the technology, tasks and human components of the organization to ensure that the organization accomplishes its purpose.” (Robert Duncan)
[Buchanan, 2000, p. 447 ff.]
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workers
Top management
Middle Management
Supervisory management
Chief executive
Senior executives
or division heads
Superintendents
General foremen
First-line supervisors
department
[Buchanan, 2000, p. 449]
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Five main aspects of organization structure
• Specialization• Hierarchy• Grouping• Integration• Control
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Specialization
Job definition is determining the task requirements of each job in the organization.
It is the first decision in the process of organizing.
[Buchanan, 2000, p. 450]
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Flat organization structure
Level
1
2
3
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Level
1
2
3
4
5
Tall organization structure
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Span of control
Span of control is the number of subordinates who report directly to a single manager or supervisor and for whose work that person is responsible.
[Buchanan, 2000, p. 454]
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Departmentalization
Departmentalization refers to the process of grouping together employees who share a common supervisor and resources, who are jointly responsible for performance, and who tend to identify and collaborate with each other.
[Buchanan, 2000, p. 464]
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Integration
Integration is the required level to which units in an organization are linked together, and their respective degree of independence. Integrative mechanisms include rules and procedures and direct managerial control.
[Buchanan, 2000, p. 517]
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Centralization
Centralization refers to the concentration of authority and responsibility for decision-making in the hands of managers at the top of an organization’s hierarchy.
[Buchanan, 2000, p. 475]
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Decentralization
Decentralization refers to authority and responsibility for decision making being dispersed more widely downwards and given to the operating units, branches and lower-level managers.
[Buchanan, 2000, p. 475]
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Line Structure
• Functional: grouping according to function
• Divisional: grouping according to products
• Geographic: grouping according to geographic market
• Hybrid: functional and divisional grouping
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Line
President
PresidentR&D
PresidentMfg
PresidentAcct
Vice President
Vice President
Assistent
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Functional Line
President
Marketing Mfg Acct
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Divisional Line
President
Cars Trucks Busses
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Geographic Line
CEO
Europe Asia USA
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Functional vs. Divisional
• Functional emphasis vs. product emphasis• Economy of scale vs. ability to react to changes
in the market• Innovation vs. Integration and standardization
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Line And Staff Structure (I)
• Modification of the line structure• Specialists support line managers• Staff departments performs tasks through line
structure (= functional power)• Staff departments do not possess disciplinary
power
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Line And Staff Structure (II)
President
Marketing Mfg AcctMarketResearch
Com- puting
Legal Office
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Matrix
• simultaneous functional and divisional structure
• Two-boss-employees• coordination of matrix bosses needed • highly flexible
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Matrix StructurePresident
Design Vice President
ManufacturingVice President
MarketingVice President
ProductManger A
ProductManger B
ProductManger C
Director of Product
Operations
[Draft, 1998,p.225]
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Advantages
• Sharing of human resources across products• Meets both demands of enviroment:
innovation and product quality• Opportunity for functional and product skill
development
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Disadvantages
• Dual authority can be frustrating and confusing for employee
• Employees need interpersonal skills and training • Time-consuming coordination needed• Dual pressure for power balance needed
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Example: UniversityPresident
VPFinace &
Administration
VPResearch & Lecturing
VPStudent Matters
VPPlanning
LanguageDepartment
EconomicsDepartment
English
French
Marketing
Accounting
Director Masters
Programme
DirectorUndergraduate
Programme
Prof. A Prof. C
Prof. B Prof. D
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Organigraphs (I)
• Developed by Mintzberg and van der Heyden• Organization chart does not provide sufficient
information• Add ‘sets’, ‘Chains’, ‘hubs’ and ‘web’ to
organization charts
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Organigraphs (II)
Set Chain
Hub Web
[Buchanan, 2000, p. 468]
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5. Formal and informal organization structure
Formal organization
refers to the collection of work groups that have been consciously designed by senior management to maximize efficiency and achieve organizational goals.
[Buchanan, 2000, p. 462]
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formal organization
public relations
job evaluation
safety
[Buchanan, 2000, p. 463]
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Informal organization
• refers to the network of relationships that spontaneously establish themselves between members of the organization on the basis of their common interests and friendships.
[Buchanan, 2000, p. 462]
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informal organization
[Buchanan, 2000, p. 463]
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Formal organization
Informal organization
A structure
(a) origin planned spontaneous
(b) rational rational emotional
(c) characteristics stable dynamic
B position terminology job role
C goals profitability or service to society
member satisfaction
D charting organizational chart
sociogram
The formal and informal organization
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6. Organization structures by Mintzberg
major contribution to two topics in the field of
organization behaviour:
1. different forms that an organization’s structure can take
2. range of roles performed by managers
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Forms of organization structure
1. strategic apex
2. middle line
3. operating core
4. technostructure
5. support staff
• ways in which these parts could be co-ordinated
• five parts and five co-ordinating mechanisms to describe five different “ideal” types of organization structure
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1. strategic apex
• contains those individuals who direct the organization
• senior management
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• those who receive inputs and transform them into the products or services
• Functional core employees • the heart of every organization
2. Operating core
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• middle managers and supervisors • between the strategic apex at the top and the
operating core at the bottom
3. Middle line
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• Technical support staff • analysts and technical advisers
4. Technostructure
5. Staff support
individuals who provide administrative and clerical support for the different levels
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Literatur
• Banner, David; Gagné, Elaine (1995): Designing effective organizations. Traditional & transformational views. London et al : Sage Publications.
• Bleicher, Knut (1991): Organisation : Strategien - Strukture - Kulturen. Wiesbaden : Gabler.
• Buchanan, David; Huczynski, Andrzej (2000): Organizational Behaviour. An introductory text. London : Prentice Hall.
• Draft, Richard (1998): Organization theory and design. Cincinatti : South-Western College Publishing.
• Theis, Anna Maria (1994): Organisationskommunikation. Theoretische Grundlagen und empirische Forschungen. Opladen: Westdeutscher Verlag.