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    Organizational Structure and Design: © Pearson Education Limited 2015 6-1

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    Thảo Trương

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Organizational Structure and Design: © Pearson Education Limited 2015 6-1

    Uploaded by

    Thảo Trương
    54 views25 pages

    Original Title

    Chapter 6

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    54 views25 pages

    Organizational Structure and Design: © Pearson Education Limited 2015 6-1

    Uploaded by

    Thảo Trương

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 25

    6 Chapter

    Organizational
    Structure and
    Design

    © Pearson Education Limited 2015 6-1


    Learning Outcomes
    • Describe six key elements in organizational
    design.
    • Identify the contingency factors that favor either
    the mechanistic model or the organic model of
    organizational design.
    • Compare and contrast traditional and
    contemporary organizational designs.
    • Discuss the design challenges faced by today’s
    organizations.
    © Pearson Education Limited 2015 6-2
    6.1 Describe six key
    elements in
    organizational
    design.

    © Pearson Education Limited 2015 6-3


    Elements of Organizational
    Structure
    • Work specialization
    • Departmentalization
    • Authority and responsibility
    • Span of control
    • Centralization vs. decentralization
    • Formalization

    © Pearson Education Limited 2015 6-4


    Specialization

    © Pearson Education Limited 2015 6-5


    Departmentalization

    © Pearson Education Limited 2015 6-6


    Types of Authority Relationships

    © Pearson Education Limited 2015 6-7


    Line and Staff Authority

    © Pearson Education Limited 2015 6-8


    Unity of Command

    A structure in which each employee reports to


    only one manager.

    © Pearson Education Limited 2015 6-9


    How Do Authority and Power
    Differ?
    Authority: Power:
    a right whose legitimacy an individual’s ability to
    is based on an authority influence decisions
    figure’s position in the
    organization; it goes
    with the job

    © Pearson Education Limited 2015 6-10


    Power Versus Authority

    © Pearson Education Limited 2015 6-11


    Sources of Power

    © Pearson Education Limited 2015 6-12


    Span of Control
    Most effective and efficient span depends on:
    • Employee experience and training (more they
    have, larger span).
    • Similarity of employee tasks (more similarity,
    larger span).
    • Complexity of those tasks (more complex, smaller
    span).

    © Pearson Education Limited 2015 6-13


    Centralization & Decentralization
    Centralization Decentralization
    decision making takes lower-level managers
    place at upper levels of provide input or actually
    the organization make decisions

    © Pearson Education Limited 2015 6-14


    Formalization
    How standardized an organization’s jobs are and
    the extent to which employee behavior is guided
    by rules and procedures.

    © Pearson Education Limited 2015 6-15


    Models of Organizational Design

    © Pearson Education Limited 2015 6-16


    Strategy and Structure

    Certain structural designs work best with


    different organizational strategies.

    © Pearson Education Limited 2015 6-17


    Size and Structure
    Organic Mechanistic
    Less than 2,000 More than 2,000
    employees can be employees makes forces
    organic. organizations to become
    more mechanistic.

    © Pearson Education Limited 2015 6-18


    Environment and Structure

    Stable environment: mechanistic structure

    Dynamic environment: organic structure

    © Pearson Education Limited 2015 6-19


    6.3 Compare and
    contrast traditional
    and contemporary
    organizational
    designs.

    © Pearson Education Limited 2015 6-20


    Traditional Organizational Designs

    © Pearson Education Limited 2015 6-21


    Contemporary Organizational
    Design

    © Pearson Education Limited 2015 6-24


    Team Structure
    A structure in which the entire organization is
    made up of work teams that do the organization’s
    work.

    © Pearson Education Limited 2015 6-25


    Matrix and Project Structures

    © Pearson Education Limited 2015 6-26


    Project Structure
    A structure in which employees continuously
    work on projects.

    © Pearson Education Limited 2015 6-27

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