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Understanding And Managing Organizational Behavior 4th Edition. Chapter 16: Organizational Design and Structure. JENNIFER GEORGE & GARETH JONES. Chapter Objectives. Understand the relationship between organizational design and an organization’s structure

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chapter 16 organizational design and structure

Understanding

And

Managing

Organizational

Behavior

4th Edition

Chapter 16:Organizational Design and Structure

JENNIFER GEORGE

& GARETH JONES

chapter objectives
Chapter Objectives
  • Understand the relationship between organizational design and an organization’s structure
  • Explain the main contingencies affecting the process of organizational design and differentiate between a mechanistic and an organic structure
chapter objectives3
Chapter Objectives
  • Cite the advantages of grouping people into functions and divisions and distinguish between the main forms of organizational structure from which an organization can choose
  • Explain why coordination becomes a problem with the growth of an organization and differentiate between the three main methods it can use to overcome this problem and link its functions and divisions
chapter objectives4
Chapter Objectives
  • Gain an understanding of the enormous impact modern information technology has had on the process of organizational design and structure both inside organizations and between them
opening case a new approach to organizing at sun life
Opening Case: A New Approach to Organizing at Sun Life
  • Why did Sun Life Change Its Structure?
  • Rigid and bureaucratic structure
  • Customer response too slow
  • Reorganization into series of cross-functional product teams
designing organizational structure
Designing Organizational Structure
  • Organizational Structure: Formal system of task and job reporting relationships
  • Organizational Design: Arrangement of tasks and job relationships that comprise the organizational structure
figure 16 1 contingencies affecting organizational design
Figure 16.1 Contingencies Affecting Organizational Design
  • Organization’s Environment
  • Technology
  • HR and Employment Relationships
routine vs complicated technology
Routine vs Complicated Technology
  • Task Variety
  • Task Analyzability
kinds of technology
Kinds of Technology
  • Small Batch
  • Mass Production
  • Continuous Process
organic and mechanistic structures
Organic

Dynamic, flexible

Empowered teams

Continuous improvement

Norms and values

Mechanistic

Formal, controlling

Centralized decision-making

Clearly defined tasks

Rules and regulations

Organic and Mechanistic Structures
the functional structure
Advantages

Coordination

Communication

Skill Improvement

Motivation

Controlling

Disadvantages

Limited growth under existing structure

Limits to number of products and services

Coordination difficulties at larger size

The Functional Structure
divisional structures
Divisional Structures
  • Product
  • Market
  • Geographic
the divisional structure
Advantages

As size and complexity of organization increases,

Coordination

Communication

Motivation

Autonomy

Disadvantages

Increased costs

Duplication of functions

Miscommunication across divisions

Competition for resources

Conflict

The Divisional Structure
the matrix structure
The Matrix Structure
  • Complex network of reporting relationships among product teams and functions
  • People and resources grouped by
    • Function
    • Product
the matrix structure15
Advantages

Coordination

Fast new product development

Communication

Cooperation

Innovation

Creativity

Autonomy

Disadvantages

Role conflict

Role ambiguity

Stress

Unclear individual contributions to team performance

The Matrix Structure
techniques for enhancing coordination
Techniques for Enhancing Coordination
  • Allocating Authority
  • Mutual Adjustment and Integrating Mechanisms
  • Standardization
allocating authority
Allocating Authority
  • Span of control
  • Tall and Flat Hierarchies
  • Chain of Command
  • Centralization versus Decentralization
mutual adjustment and integrating mechanisms
Mutual Adjustment and Integrating Mechanisms
  • Direct contact
  • Liaison roles
  • Teams and task forces
  • Cross-functional teams
standardization
Standardization
  • Standardizing inputs
  • Standardizing conversion processes
    • Formalization
  • Standardizing outputs
the effects of it
The Effects of IT
  • Virtual organizations
  • Network structure