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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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Presentation Transcript
fundamental of organizing
Fundamental of Organizing
  • Organizing is the process of establishing orderly uses for all resources within the management system.
basic types of organizational structure
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
The Functional Structure
  • Grouping by similar work specialties
the divisional structure
The Divisional Structure
  • Grouping by similarity of purpose
the conglomerate structure
The Conglomerate Structure
  • Grouping by industry
the hybrid structure
The Hybrid Structure
  • Functional & Divisional Used within the Same Organization
the matrix structure
The Matrix Structure
  • A Grid of Functional & Divisional for Two Chains of Command
types of the matrix structure
Types ofThe Matrix Structure
  • Weak/Functional Matrix
  • Balanced/Functional Matrix
  • Strong/Project Matrix
the team based structure
The Team-Based Structure
  • Eliminating Functional Barriers to Solve Problems
the network structure
The Network Structure
  • Connecting a Central Core to Outside Firms by Computer Connections
network structure mysql
Network Structure: MySQL
  • Software maker
  • 320 workers
  • Located in 25 countries
  • 70% of workers work from home
network structure h m
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
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
Factors in Creating the Best Structure
  • The Environment
  • Size
  • Technology
  • Life Cycle
the environment mechanistic vs organic

Centralized hierarchy of authority

Many rules and procedures

Specialized tasks

Formalized communication

Few teams or tasks forces

Narrow span of control, taller structure


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
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.
  • The larger the organization, the more mechanistic
  • Small-Batch Technology

Custom–Made Products Made by Organic Organization

  • Large-Batch Technology: Mass – Produced Products Made by Mechanized Organization.
  • Continuous-Process: Highly Routinized Products Made by Organic Organization
life cycle
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