Organizational Structure
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Organizational Structure Communication in Organizations Prof. Dr. Jürgen Beneke SoSe 2003 Laura Hofman Miquel Hanna Barst Jörg Petzold PowerPoint PPT Presentation


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Organizational Structure Communication in Organizations Prof. Dr. Jürgen Beneke SoSe 2003 Laura Hofman Miquel Hanna Barst Jörg Petzold. To organizational effectiveness and quality of working life contribute:. Individual factors group factors process factors management factors

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Organizational Structure Communication in Organizations Prof. Dr. Jürgen Beneke SoSe 2003 Laura Hofman Miquel Hanna Barst Jörg Petzold

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Organizational structure communication in organizations prof dr j rgen beneke sose 2003 laura hofman miquel hanna bar

Organizational StructureCommunication in OrganizationsProf. Dr. Jürgen BenekeSoSe 2003Laura Hofman MiquelHanna Barst Jörg Petzold


To organizational effectiveness and quality of working life contribute

To organizational effectiveness and quality of working life contribute:

  • Individual factors

  • group factors

  • process factors

  • management factors

  • structural factors

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Interest of social scientists

Interest of social scientists

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.

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


The intention of organization structure is

The intention of organization structure is :

  • to divide up organizational activities and allocate them to subunits

  • to co-ordinate and control these activities so that they achieve the aims of the organization.

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organizational structure communication in organizations prof dr j rgen beneke sose 2003 laura hofman miquel hanna bar

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.]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organizational structure communication in organizations prof dr j rgen beneke sose 2003 laura hofman miquel hanna bar

Chief executive

Top management

Senior executives

department

or division heads

Middle Management

Superintendents

General foremen

Supervisory management

First-line supervisors

workers

[Buchanan, 2000, p. 449]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Five main aspects of organization structure

Five main aspects of organization structure

  • Specialization

  • Hierarchy

  • Grouping

  • Integration

  • Control

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Specialization

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Flat organization structure

Flat organization structure

Level

1

2

3

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Tall organization structure

Tall organization structure

Level

1

2

3

4

5

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Span of control

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Departmentalization

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Integration

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Centralization

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Decentralization

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Line structure

Line Structure

  • Functional: grouping according to function

  • Divisional: grouping according to products

  • Geographic: grouping according to geographic market

  • Hybrid: functional and divisional grouping

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organizational structure communication in organizations prof dr j rgen beneke sose 2003 laura hofman miquel hanna bar

Vice

President

Vice

President

Assistent

Line

President

President

R&D

President

Mfg

President

Acct

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Functional line

Functional Line

President

Marketing

Mfg

Acct

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Divisional line

Divisional Line

President

Cars

Trucks

Busses

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Geographic line

CEO

Europe

Asia

USA

Geographic Line

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Functional vs divisional

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

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Line and staff structure i

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

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Line and staff structure ii

President

Legal

Office

Marketing

Market

Research

Mfg

Com-

puting

Acct

Line And Staff Structure (II)

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Matrix

Matrix

  • simultaneous functional and divisional structure

  • Two-boss-employees

  • coordination of matrix bosses needed

  • highly flexible

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Matrix structure

Matrix Structure

President

Director of

Product

Operations

Design

Vice President

Manufacturing

Vice President

Marketing

Vice President

Product

Manger A

Product

Manger B

Product

Manger C

[Draft, 1998,p.225]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Advantages

Advantages

  • Sharing of human resources across products

  • Meets both demands of enviroment:innovation and product quality

  • Opportunity for functional and product skill development

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Disadvantages

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

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Example university

Example: University

President

VP

Finace &

Administration

VP

Research &

Lecturing

VP

Student Matters

VP

Planning

Language

Department

Economics

Department

English

Marketing

Prof. A

Prof. C

Prof. B

Prof. D

French

Accounting

Director

Undergraduate

Programme

Director

Masters

Programme

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organigraphs i

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

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organigraphs ii

Organigraphs (II)

Set

Chain

Hub

Web

[Buchanan, 2000, p. 468]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organizational structure communication in organizations prof dr j rgen beneke sose 2003 laura hofman miquel hanna bar

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organizational structure communication in organizations prof dr j rgen beneke sose 2003 laura hofman miquel hanna bar

formal organization

public relations

job evaluation

safety

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold

[Buchanan, 2000, p. 463]


Informal organization

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]

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Organizational structure communication in organizations prof dr j rgen beneke sose 2003 laura hofman miquel hanna bar

informal organization

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold

[Buchanan, 2000, p. 463]


The formal and informal organization

The formal and informal organization

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

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


6 organization structures by mintzberg

6. Organization structures by Mintzberg

major contribution to two topics in the field of

organization behaviour:

  • different forms that an organization’s structure can take

  • range of roles performed by managers

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Forms of organization structure

Forms of organization structure

  • strategic apex

  • middle line

  • operating core

  • technostructure

  • 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

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


1 strategic apex

1. strategic apex

  • contains those individuals who direct the organization

  • senior management

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


2 operating core

2. Operating core

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

  • Functional core employees

  • the heart of every organization

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


3 middle line

3. Middle line

  • middle managers and supervisors

  • between the strategic apex at the top and the operating core at the bottom

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


4 technostructure

4. Technostructure

  • Technical support staff

  • analysts and technical advisers

5. Staff support

individuals who provide administrative and clerical support for the different levels

Organizational Structure

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


Literatur

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

Laura Hofman Miquel, Hanna Barst, Jörg Petzold


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