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The Organizational System. Organizational Structure Organizational Designs . What is Structure?. The degree of complexity, formalization and centralization in the organization. Complexity is the degree of vertical, horizontal and spatial differentiation in an organization

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The organizational system
The Organizational System

  • Organizational Structure

  • Organizational Designs


What is structure
What is Structure?

  • The degree of complexity, formalization and centralization in the organization.

  • Complexity is the degree of vertical, horizontal and spatial differentiation in an organization

  • Formalization is the degree to which jobs within the organization are standardized.

  • Centralization is the degree to which decision making in concentrated at a single point in the organization


Classical view of structure
Classical View of Structure

  • Division of Labour – Specialization; breaking jobs down into simple and repetitions tasks

  • Unity of Command – a subordinate should have only one superior to whom he or she is directly responsible.

  • Responsibility - an obligation to perform

  • Line Authority – authority to direct the work of a subordinate


Classical view of structure1
Classical View of Structure……

  • Chain of Command – the superior-subordinate authority chain that extends from the top of the organization to the lowest echelon

  • Staff Authority – positions that support, assist and advise line managers

  • Span of Control – the number of subordinates a manger can efficiently and effectively divert

  • Departmentation: grouping of activities on some common basis







The coming of the new organization
The coming of the New Organization

  • Rapid and unexpected change

  • Increasing diversity

  • Change in managerial behaviour

  • Adoption to computer technology



The mechanistic structure1
The Mechanistic Structure……

  • High horizontal differentiation

  • Rigid hierarchical relationships

  • Fixed duties

  • High formalization

  • Formalized communication channels

  • Centralized decision authority



The organic structure
The Organic Structure…..

  • Low horizontal differentiation

  • Collaboration (both horizontal and vertical)

  • Adaptable duties

  • Low formalization

  • Informal communication

  • Decentralized decision authority



Why do structures differ1
Why do Structures Differ?.....

  • Size

    • Increase in the number of employees results in

      • High complexity

      • High formalization

      • decentralization



Technology
Technology…

Task variability

Few Exceptions

Many Exceptions

Routine

Engineering

Well-defined

Problem Analyzability

1

2

Craft

Non routine

3

4

Ill-defined


Technology1
Technology…

B

C

D

Input

A

Output

A. Long-linked Technology

Transformational

Process

Client A

Client B

B. Mediating Technology

Resources

A

B

C

D

Transformational

Process

Output

Feedback

C. Intensive Technology


Why do structures differ3
Why do Structures Differ?.....

Stable

Environment

Abundant

simple

Complex

Scarce

Dynamic

Three Dimensional Model of the Environment


Why do structures differ4
Why do Structures Differ?...

  • Power control

    • An organization structure is the result of power struggle by internal constituencies who are seeking to further their interests


Mintzberg s five design configurations
Mintzberg`s five design configurations

  • The operating core: Employees who perform the basic work related to the production of products and services

  • The strategic apex: Top level managers who are charged with the overall responsibility of the organization

  • The middle level: Managers who connect the operating core to the strategic apex

  • The technosturcture: Analysts who have the responsibility for effecting certain forms of standardization in the organization

  • The support staff: People who fill the staff units, who provide indirect services for the organization



Basic subunits subunitexample positions from a manufacturing firm
Basic Subunits SubunitExample positions from a manufacturing firm.

  • Strategic Apex: Board of Directors, Chief Executive Officer

  • Techno structure: Strategic Planning, Personnel Training, Operations Research, Systems Analysis and Design

  • Support Staff: Legal Counsel, Public Relations, Payroll, Mailroom Clerks, Cafeteria Workers

  • Middle Line: VP Operations, VP Marketing, Plant Managers Sales Managers

  • Operating Core: Purchasing Agents, Machine Operators, Assemblers, Sales Persons, Shippers


The simple structure
The Simple Structure firm.

  • Low complexity

  • Low formalization

  • Centralized authority


The machine bureaucracy
The Machine Bureaucracy firm.

  • High in complexity, formalization and centralization

  • Key part is technostructure


The professional bureaucracy
The Professional Bureaucracy firm.

  • High in complexity, formalization

  • Low centralization


The divisional structure
The Divisional Structure firm.

  • A set of autonomous units coordinated by central headquarters


The adhocracy
The Adhocracy firm.

  • A structure characterized as low in complexity, formalization centralization


The matrix structure
The Matrix Structure firm.

Programs

Academic departments

Matrix Structure for a College of Business Administration


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