OB Models and Organizational Structure Chapter 12.pdf

Power Basis of Model Authority Managerial Orientation Obedience Employee Orientation Autocratic Depends On Boss Employee Psychological Result Subsistence Employee Needs met Minimum Performance Result Defense Team Example Economical Resource Basis of Model Money Managerial Orientatio...

Power Basis of Model Authority Managerial Orientation Obedience Employee Orientation Autocratic Depends On Boss Employee Psychological Result Subsistence Employee Needs met Minimum Performance Result Defense Team Example Economical Resource Basis of Model Money Managerial Orientation Security & Benefit Employee Orientation Custodial Depends On Organization Employee Psychological Result Security Employee Needs met Passive Cooperation Performance Result Garments Factory Example Leadership Basis of Model Support Managerial Orientation Job & Performance Employee Orientation OB Models Supportive Status & Recognition Employee Needs met Awakened Drives Performance Result Software Firm Example Partnership Basis of Model Teamwork Managerial Orientation Responsible Behavior Employee Orientation Collegial Self Discipline Employee Psychological Result Self Actualization Employee Needs met Moderate Enthusiasm Performance Result Social Organization Example Trust Community Understanding Basis of Model Caring Compassion Managerial Orientation Psychological Ownership Employee Orientation System Partnership Employee Psychological Result Self Motivation Employee Psychological Result Employee Needs met Performance Result Example Wide Range Passion Commitment Organizational Goals Some Corporate Firm To what degree are activities subdivided into separate jobs? On what basis will jobs be grouped together? To whom do individuals and groups report? how the structure is designed Key Design Questions and Answers for Designing the Proper Organizational Structure The Key Design Questions The answer is provided by The answer is provided by The answer is provided by How many individuals can a manager efficiently and effectively direct? Work specialization Departmentalization Chain of command The answer is provided by To clarify To clarify Once jobs have been divided through work specialization, they must be grouped, so that common tasks can be coordinated. It is the unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom. Span of control Centralization Where does decision-making authority lie? The answer is provided by Centralization and decentralization Top managers make all the decisions, and lower-level managers merely carry out their directives. To clarify Decentralization To what degree will there be rules and regulations to direct employees and managers? OB Models and Organizational Structure Salesperson Salesperson Owner - Manager Cashier Simple Structure Simplicity Strengths It i sfast, flexible, and inexpensive to operate, and accountability is also clear. becomes increasingly inadequate as an organization grows. Its low formalization and high centralization tend to create information overload at the top. Weaknesses As the size increases, decision making becomes slower and can eventually come to a standstill as the single executive tries to continue making all the decisions. Field Sales Force Sales & Marketing E-commerce & Direct Sales Customer Service Component Manufucture Production Quality Control CEO Board of Directors Product Assembly Human Resources Management Accounting Finance Financial Accounting Research & Development Purchasing Effective organizing Supports hiring of specialized work force Standard operating procedures Strengths Beaurocratic/Functional structure No room for favoritism Merit based hiring Highly routine operating tasks Formalized rules & regulations Functional Departmentalization Weakness Centralized authority Narrow spans of control Decision Making that follows chain of command The bureaucracy is efficient only as long as employees confront familiar problems with programmed decision rules. Director Organizational Structure Manager Project A Analyists Architect Developer Tester Manager Project B Analyists Architect Developer Tester Manager Project C Analyists Architect Developer Tester This structure is used if the business takes on projects that require teams of specialized employees and lots of collaboration. Project Based Structure The Drawbacks Teams must adapt to a new set of colleagues, and sometimes a new manager, every time they tackle a new task. The manager has to be an all-rounder, controlling all the traditional management functions of finance, marketing, HR, operations, and so on. Production Director Project A Production Manager Project A Marketing Manager Marketing Director CEO Finance Director Project B Marketing Manager Project A Marketing Manager Project B Marketing Manager Project Director A Project B Director Clear Project Objectives Efficient use of resources Free flowing information Strengths Training for Project Managers Retention of teams Matrix structure (Flat/horizontal structure) Dual reporting leads to complexity Slow response time Conflicting Guidance Weaknesses Potential Power Struggles Juggling Priorities BMW IBM Examples BOEING ABB Independent Research & Development Consulting Firm Advertising Agency Executive Group Factories in South Korea Commissioned sales representatives Virtual Structure also known as network, or modular, organization), is a typically small, core organization that outsources its major business functions. Highly centralized, with little or no departmentalization. Warner Bros Examples FOX NEWMAN'S OWN Other structures Eliminates chain of command. Limitless spans of control. Replace departments with empowered teams. Removes exterior barriers Bountaryless Structure Relies heavily on technology. AT&T hp Examples BMW CocaCola Motorola 3M Which Structure is the best? Each organizational structure has its pros and cons. find a form of organizational structure in which your business gets the most benefit from the pros and suffers least from the cons. There is no right or wrong way to organize your business. Some establishments may require rigid and centralized foundations, while others flourish with flexible and decentralized environments. The answer is provided by Formalization To clarify Decision making is concentrated at a single point. The decision making in decentralized organizations is pushed down to the managers closest to the action. is the extent to which an organization's policies, procedures, job descriptions and rules are written and explicitly articulated.