Organizational Structure and

Design

Chapter 15

15-1 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives

1. Describe what is meant by organizational structure and how it is revealed by an organizational chart.

2. Explain the basic characteristics of organizational structure revealed in an organizational chart.

3. Describe different approaches to departmentalization.

15-2 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives

4. Distinguish between classical and neoclassical approaches to organizational design and between mechanistic organizations and organic organizations as described by the contingency approach to organizational design.

5. Describe the five organizational forms identified by Mintzberg.

6. Characterize two forms of interorganizational design.

15-3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Organizational Structure

The formal configuration between

individuals and groups with respect to

the allocation of tasks, responsibilities,

and authorities within organizations

15-4 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Organization Chart

15-5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Tall vs. Flat Organizations

15-6 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Division of Labor

15-7 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Line vs. Staff Positions

15-8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Decentralization

15-9 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Functional Organization

15-10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Product Organization

15-11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Matrix Organization

15-12 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Organizational Design

The process of coordinating the

structural elements of an organization

in the most appropriate manner

15-13 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Classical vs. Neoclassical Organizational Design

15-14 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Contingency Approach Mechanistic vs. Organic

15-15 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Design Effectiveness

15-16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Five Organizational Forms

15-17 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Vertically Integrated Organization

15-18 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Team-based Organization

15-19 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Boundary-less Organization

15-20 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Other Emerging Organizational Designs

Modular or network

Virtual

15-21 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Intraorganizational Designs

Conglomerates

Spinoff

15-22 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Strategic Alliances

15-23 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning.

Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by

instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical

purposes and the needs of other instructors who rely on these materials.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-24