Chapter 10
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Chapter 10. Managing Organizational Structure and Culture. Organizational Structure. Organizational Architecture

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Chapter 10

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Chapter 10

Chapter 10

Managing Organizational Structure and Culture


Organizational structure

Organizational Structure

  • Organizational Architecture

    • The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used

MGMT 321 – Chapter 10


Organizational structure1

Organizational Structure

  • Organizing

    • Establishing working relationships among employees to achieve goals.

  • Organizational Structure

    • Formal system of task and reporting relationships showing how workers use resources.

  • Organizational Design

    • Creating a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way

MGMT 321 – Chapter 10


Factors affecting organizational structure

Factors Affecting Organizational Structure

MGMT 321 – Chapter 10


The organizational environment

The Organizational Environment

Organization structure depends on:

  • How to group tasks into individual jobs

  • How to group jobs into functions and divisions

  • How to allocate authority and coordinate functions and divisions

MGMT 321 – Chapter 10


Job design

Job Design

  • Job Design

    • Deciding how to divide tasks into specific jobs

  • Job Enlargement

    • Increasing the number of different tasks in a given job by changing the division of labor

  • Job Enrichment

    • Increasing the degree of a worker’s responsibility

MGMT 321 – Chapter 10


The job characteristics model

The Job Characteristics Model

MGMT 321 – Chapter 10


Job characteristics model

Job Characteristics Model

MGMT 321 – Chapter 10


Grouping jobs into functions

Grouping Jobs into Functions

  • Function

    • Group of people who possess similar skills to perform their jobs

  • Functional Structure

    • An organizational structure composed of all the departments that an organization requires to produce its goods or services

MGMT 321 – Chapter 10


Divisional structures

Divisional Structures

  • Divisional Structure

    • Managers create a series of business units to produce a specific kind of product for a specific kind of customer

  • Types of Divisional Structures

    • Product

    • Market

    • Geographic

MGMT 321 – Chapter 10


Types of divisional structures

Types of Divisional Structures

MGMT 321 – Chapter 10


Matrix structure

Matrix Structure

MGMT 321 – Chapter 10


Product team structure

Product Team Structure

MGMT 321 – Chapter 10


Federated s hybrid structure

Federated’s Hybrid Structure

MGMT 321 – Chapter 10


Allocating authority

Allocating Authority

  • Hierarchy of Authority

    • An organization’s chain of command

    • Span of control

  • Line Manager

  • Staff Manager

MGMT 321 – Chapter 10


Tall organizations

Tall Organizations

MGMT 321 – Chapter 10


Flat organizations

Flat Organizations

MGMT 321 – Chapter 10


Decentralization of authority

Decentralization of Authority

  • Decentralizing authority

  • Disadvantages

    • Teams may begin to pursue their own goals at the expense of organizational goals

    • Can result in a lack of communication among divisions

MGMT 321 – Chapter 10


Integrating mechanisms

Integrating Mechanisms

MGMT 321 – Chapter 10


Organizational culture

Organizational Culture

MGMT 321 – Chapter 10


Adaptive and inert cultures

Adaptive and Inert Cultures

  • Adaptive cultures

    • Values and norms help an organization grow and change as needed to be effective

  • Inert cultures

    • Values and norms that fail to motivate or inspire employees

    • Lead to stagnation and often failure over time

MGMT 321 – Chapter 10


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