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Chapter 11

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Designing Organizational Structure

Chapter 11
F I F T E E N T H E D I T I O N , G L O B A L E D I T I O N
Learning Objectives
Describe six key elements in organizational Contrast mechanistic and organic
01 design
02 structures.

Discuss the contingency factors that favor


03 either the mechanistic model or the
04
Describe traditional organizational design
organic model of organizational design. options

Discuss organizing for flexibility in the twenty-


05 first century.
Elements of Organizational Design

• Organizing: management function that involves arranging and


structuring work to accomplish the organization’s goals
• Organizational structure: the formal arrangement of jobs within an
organization
• Organizational chart: the visual representation of an organization’s
structure
• Organizational design: creating or changing an organization’s
structure
Purposes of Organizing

Purposes
• Divides work to be done into specific jobs and departments.
• Assigns tasks and responsibilities associated with individual
jobs.
• Establishes relationships among individuals, groups, and
departments.
• Establishes formal lines of authority.
Work Specialization

• Work specialization: dividing work activities into separate job


tasks
Departmentalization

• Departmentalization: the basis by which jobs are grouped


together
Today’s View on Departmentalization

Two trends are:


• –Cross-functional teams: a work team composed of individuals
from various functional specialties. This has become more popular
as tasks become more complex.
• –Customer departmentalization: emphasizes monitoring and
responding to customers’ needs
Chain of Command

• Chain of command: the line of authority extending from upper


organizational levels to the lowest levels, which clarifies who
reports to whom
Authority

• Authority: the line of authority extending from upper organizational


levels to the lowest levels, which clarifies who reports to whom
• Line authority: authority that entitles a manager to direct the work
of an employee
• Staff authority: positions with some authority that have been created
to support, assist, and advise those holding line authority
Responsibility

• Responsibility: the obligation or expectation to perform any


assigned duties

• Unity of command: the management principle that each person


should report to only one manager
Span of Control

•Span of control: the number of employees a manager can efficiently


and effectively manage
Centralization and Decentralization

• Centralization: the degree to which decision making is


concentrated at upper levels of the organization
• Decentralization: the degree to which lower-level
employees provide input or actually make decisions
Employee Empowerment

• Employee empowerment: giving


employees more authority (power) to
make decisions
Formalization

• Formalization: how standardized an organization’s jobs


are and the extent to which employee behavior is guided
by rules and procedures
Size and Structure

• There’s considerable evidence that an organization’s size affects its


structure, but once an organization grows past a certain size, size has
less influence on structure.
Telecommuting

• Telecommuting: a work arrangement in which


employees work at home and are linked to the
workplace by computer
Compressed Workweeks, Flextime, and Job
Sharing
• Compressed workweek: a workweek where employees work longer hours
per day but fewer days per week
• Flextime (or flexible work hours): a scheduling system in which employees
are required to work a specific number of hours a week but are free to vary
those hours within certain limits
• Job sharing: the practice of having two or more people split a full-time job
The Contingent Workforce

• Contingent workers: temporary, freelance, or contract workers whose


employment is contingent on demand for their services
Thank You

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