organizational structure communication in organizations prof. dr. jürgen beneke sose 2003 laura...

Organizational StructureCommunication in Organizations

Prof. Dr. Jürgen BenekeSoSe 2003

Laura Hofman MiquelHanna Barst Jörg Petzold

5/6/2003Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold 2

To organizational effectiveness and quality of working life contribute:

1. Individual factors

2. group factors

3. process factors

4. management factors

5. structural factors



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



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.



• 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.]



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]



Five main aspects of organization structure

• Specialization• Hierarchy• Grouping• Integration• Control



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]



Flat organization structure

Level

1

2

3



Level

1

2

3

4

5

Tall organization structure



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]



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]



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]



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]



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]



Line Structure

• Functional: grouping according to function

• Divisional: grouping according to products

• Geographic: grouping according to geographic market

• Hybrid: functional and divisional grouping



Line

President

PresidentR&D

PresidentMfg

PresidentAcct

Vice President

Vice President

Assistent



Functional Line

President

Marketing Mfg Acct



Divisional Line

President

Cars Trucks Busses



Geographic Line

CEO

Europe Asia USA



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



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



Line And Staff Structure (II)

President

Marketing Mfg AcctMarketResearch

Com- puting

Legal Office



Matrix

• simultaneous functional and divisional structure

• Two-boss-employees• coordination of matrix bosses needed • highly flexible



Matrix StructurePresident

Design Vice President

ManufacturingVice President

MarketingVice President

ProductManger A

ProductManger B

ProductManger C

Director of Product

Operations

[Draft, 1998,p.225]



Advantages

• Sharing of human resources across products• Meets both demands of enviroment:

innovation and product quality• Opportunity for functional and product skill

development



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



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



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



Organigraphs (II)

Set Chain

Hub Web

[Buchanan, 2000, p. 468]



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]



formal organization

public relations

job evaluation

safety

[Buchanan, 2000, p. 463]



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]



informal organization

[Buchanan, 2000, p. 463]



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



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



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



1. strategic apex

• contains those individuals who direct the organization

• senior management



• those who receive inputs and transform them into the products or services

• Functional core employees • the heart of every organization

2. Operating core



• middle managers and supervisors • between the strategic apex at the top and the

operating core at the bottom

3. Middle line



• Technical support staff • analysts and technical advisers

4. Technostructure

5. Staff support

individuals who provide administrative and clerical support for the different levels



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.

organizational structure communication in organizations prof. dr. jürgen beneke sose 2003 laura...

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