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DivisionofLabour&CoordinationJ.Player,NewYorkTimesDivisionoflabourSubdivisionofworkintoseparatejobsassignedtodifferentpeopleCoordinationofworkInformalcommunicationFormalhierarchyStandardizationFormalizationGoals/outputsTraining/skillsWritingtopicsHowisyourorganizationstructured?Whoreportstowhom?Whydoyouthinkitisstructuredinthisway?Whatworks?Whatdoesn’twork?Whatwouldhelptheorganizationfunctionbettergiventhecontingenciesoforgstructure.OrganizationalStructureandDesignChapter16

DivisionofLabourDimension Low HighDegreeofspecialization Generaltasks HighlyspecializedtasksTypicalorganizationalsize Small LargeEconomicefficiency Inefficient HighlyefficientDIVISIONOFLABOUR:ASUMMARYOrganizationalStructureElementsSpanofControlCentralizationDepartment-alizationFormalizationElementsofOrganizationalStructureSpanofControlNumberofpeopledirectlyreportingtothenextlevelAssumescoordinationthroughdirectsupervisionWiderspanofcontrolpossiblewhen:withothercoordinatingmethodsemployeesperformsimilartaskstasksareroutineTallversusFlatOrganizations:ComparisonChiefExecutiveChiefExecutiveTallhierarchyFlathierarchyRelativelynarrowspanofcontrolRelativelywidespanofcontrolOrganizationalcrisesManagementdesireforcontrolIncreaseconsistency,reducecostsCentralizationComplexity—size,diversityDesireforempowermentDecentralizationForcesfor(De)centralizationLowDecentralization Highdecentralization(Highcentralization) (lowcentralization)Eliminatestheadditionalrespon- Caneliminatelevelsofmanagement,sibilitynotdesiredbypeople makingaleanerorganizationperformingroutinejobsPermitscrucialdecisionstobe Promotesgreateropportunitiesformadebyindividualswhohave decisionstobemadebypeopleclosestthe“bigpicture” toproblemsDECENTRALIZATION:BENEFITSWHENLOWANDWHENHIGHFormalizationThedegreetowhichorganizationsstandardizebehaviourthroughrules,procedures,formaltrainingandrelatedmechanisms.Strengthsandlimits?Mechanisticvs.OrganicStructuresMechanisticHighformalizationNarrowspanofcontrolHighcentralizationOrganicLowformalizationWidespanofcontrolLowcentralization StructureDimension Mechanistic OrganicStability Changeunlikely ChangelikelySpecialization Manyspecialists ManygeneralistsFormalrules Rigidrules ConsiderableflexibilityAuthority Centralizedin Decentralized,diffused fewtoppeople throughoutthe organization

MECHANISTICVERSUSORGANICDESIGNS:Abird’seyeviewEffectsofDepartmentalizationHowareemployeesandtheiractivitiesgroupedtogether?AreasofcommonsupervisionEstablishesworkteamsandsupervisionstructureCreatescommonresources,measuresofperformance,etcEncouragesinformalcommunicationamongpeopleandsubunits5puretypesofdepartmentalization…SimpleFewemployeesreportingdirectlytooneperson(owner)OwnerEmployeeEmployeeEmployeeOrganizesemployeesaroundskillsor

otherresources(marketing,production)CreatesubordinategoalsFunctionalOrganizationalStructurePresidentFinanceProductionMarketingOrganizesemployeesaroundoutputs,

clients,orgeographicareasDivisionalizedStructurePresidentEnterpriseSystemsLaserjetSolutionsConsumerProductsProjectCManagerProjectBManagerProjectAManagerEngineeringManagerMarketingManagerSoftwareManagerEmployeesaretemporarilyassignedtoaspecific

projectteamandhaveapermanentfunctionalunitProject-BasedMatrixStructurePresidentHYBRIDstructuresPartsarecombinedtomaintainbalanceofpowerandeffectivenessacrossfunctional,product,geographicandclientfocusedunitsFeaturesofTeam-BasedStructuresStructureisbuiltaroundSelf-directedworkteamsratherthanindividualsTeamsorganizedaroundworkprocessesVeryflatspanofcontrolVerylittleformalizationMostsupervisoryactivitiesaredelegatedtotheteamUsuallyfoundwithindivisionalizedstructureVeryresponsiveandflexible;empowermentishigh;reducedneedformanagers;timeconsuming;ambiquityCore

Firm

(Canada)Product

Development

Firm

(France)Marketing

Firm

(U.K.)Customer

Service

Firm

(U.S.A.)Production

Firm

(China)Accounting

Firm

(Canada)Network/VirtualOrganizationalStructureContingenciesOrganizationalsizeTechnologyExternalenvironmentOrganizationalstrategyHighAnalyzabilityLowAnalyzabilityHighVarietyLowVarietyScientificResearchAssemblyLineSkilledTradesEngineeringProjectsTypesofOrganizationalTechnologyOrg.Environment&StructureDynamic• Highrateofchange• Useteam-based,network,orotherorganicstructureStable• Steadyconditions,predictablechange• UsemechanisticstructureComplex• Manyelements(suchasstakeholders)• DecentralizeSimple• Fewenvironmentalelements• LessneedtodecentralizeOrg.Environment&Structure(con’t)Diverse• Varietyofproducts,clients,locations• Divisionalformalig

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