Lecture six organizational structure
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Lecture Six Organizational Structure. Fundamental of Organizing. Organizing is the process of establishing orderly uses for all resources within the management system. Basic Types of Organizational Structure. The Simple structure The Functional Structure The Divisional Structure

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Lecture Six Organizational Structure

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Lecture SixOrganizational Structure


Fundamental of Organizing

  • Organizing is the process of establishing orderly uses for all resources within the management system.


Basic Types of Organizational Structure

  • The Simple structure

  • The Functional Structure

  • The Divisional Structure

  • The Conglomerate Structure

  • The Hybrid Structure

  • The Matrix Structure

  • The Team-Based Structure

  • The Network Structure


The Functional Structure

  • Grouping by similar work specialties


The Divisional Structure

  • Grouping by similarity of purpose


The Conglomerate Structure

  • Grouping by industry


The Hybrid Structure

  • Functional & Divisional Used within the Same Organization


The Matrix Structure

  • A Grid of Functional & Divisional for Two Chains of Command


Types ofThe Matrix Structure

  • Weak/Functional Matrix

  • Balanced/Functional Matrix

  • Strong/Project Matrix


The Team-Based Structure

  • Eliminating Functional Barriers to Solve Problems


The Network Structure

  • Connecting a Central Core to Outside Firms by Computer Connections


Network Structure: MySQL

  • Software maker

  • 320 workers

  • Located in 25 countries

  • 70% of workers work from home


Network Structure:H&M

  • Not owning any factories

  • A network of 700 suppliers

  • More than two-thirds of them are in Asian countries


Group Discussion

  • Many people like the social interaction that comes with working in a physical office with other people. Others, however, welcome the opportunity to do task-oriented work in a home office. Which would you favor, why?


Factors in Creating the Best Structure

  • The Environment

  • Size

  • Technology

  • Life Cycle


Mechanistic

Centralized hierarchy of authority

Many rules and procedures

Specialized tasks

Formalized communication

Few teams or tasks forces

Narrow span of control, taller structure

Organic

Decentralized hierarchy of authority

Few rules and procedures

Shared tasks

Informal communication

Many teams and task forces

Wider span of control, flatter structure

The Environment:Mechanistic vs. Organic


The Environment:Differentiation vs. Integration

  • Differentiation: when forces push the organization apart

    • Differentiation is the tendency of the parts of an organization to disperse and fragment.

  • Integration: when forces pull the organization together

    • Integration is the tendency of the parts of an organization to draw together to achieve a common purpose.


Size

  • The larger the organization, the more mechanistic


Technology

  • Small-Batch Technology

    Custom–Made Products Made by Organic Organization


Technology

  • Large-Batch Technology: Mass – Produced Products Made by Mechanized Organization.


Technology

  • Continuous-Process: Highly Routinized Products Made by Organic Organization


Life Cycle

  • Stage 1. The Birth Stage – Nonbureaucratic

  • Stage 2. The Youth Stage – Prebureaucratic

  • Stage 3. The Midlife Stage – Bureaucratic

  • Stage 4. The Maturity Stage – Very Bureaucratic


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