organisation structure
Foundations
Foundations of of Organization
Organization
Structure
Structure
15-1
Chapter
Chapter Learning
Learning Objectives
Objectives
After studying this chapter, you should be able to:
–
–
–
–
–
Identify the six elements of an organization’s structure.
Identify the characteristics of a bureaucracy.
Describe a matrix organization.
Identify the characteristics of a virtual organization.
Show why managers want to create boundaryless organizations. – Demonstrate how organizational structures differ, and contrast mechanistic and organic structural models.
– Analyze the behavioral implications of different organizational designs.
– Show how globalization affects organizational structure.
What
What IsIs Organizational
Organizational Structure?
Structure?
Organizational Structure
– How job tasks are formally divided, grouped, and coordinated – Key Elements:
1.
Work specialization
2.
Departmentalization
3.
Chain of command
4.
Span of control
5.
Centralization and decentralization
6.
Formalization
1.
1. Work
Work Specialization
Specialization
The degree to which tasks in the organization are subdivided into separate jobs
Division of Labor
–
–
–
–
–
Makes efficient use of employee skills
Increases employee skills through repetition
Less between-job downtime increases productivity
Specialized training is more efficient
Allows use of specialized equipment
Can create greater economies and efficiencies – but not always… 15-4
Work
WorkSpecialization
SpecializationEconomies
Economiesand
andDiseconomies
Diseconomies
Specialization can reach a point of diminishing returns
Then job enlargement gives greater efficiencies than does specialization
2.
2. Departmentalization
Departmentalization
The basis by which jobs are grouped together
Grouping Activities by:
– Function
– Product
– Geography
– Process
– Customer
3.
3. Chain
Chain of of Command
Command
Authority
–
The rights inherent in a managerial position to give orders and to
Foundations of of Organization
Organization
Structure
Structure
15-1
Chapter
Chapter Learning
Learning Objectives
Objectives
After studying this chapter, you should be able to:
–
–
–
–
–
Identify the six elements of an organization’s structure.
Identify the characteristics of a bureaucracy.
Describe a matrix organization.
Identify the characteristics of a virtual organization.
Show why managers want to create boundaryless organizations. – Demonstrate how organizational structures differ, and contrast mechanistic and organic structural models.
– Analyze the behavioral implications of different organizational designs.
– Show how globalization affects organizational structure.
What
What IsIs Organizational
Organizational Structure?
Structure?
Organizational Structure
– How job tasks are formally divided, grouped, and coordinated – Key Elements:
1.
Work specialization
2.
Departmentalization
3.
Chain of command
4.
Span of control
5.
Centralization and decentralization
6.
Formalization
1.
1. Work
Work Specialization
Specialization
The degree to which tasks in the organization are subdivided into separate jobs
Division of Labor
–
–
–
–
–
Makes efficient use of employee skills
Increases employee skills through repetition
Less between-job downtime increases productivity
Specialized training is more efficient
Allows use of specialized equipment
Can create greater economies and efficiencies – but not always… 15-4
Work
WorkSpecialization
SpecializationEconomies
Economiesand
andDiseconomies
Diseconomies
Specialization can reach a point of diminishing returns
Then job enlargement gives greater efficiencies than does specialization
2.
2. Departmentalization
Departmentalization
The basis by which jobs are grouped together
Grouping Activities by:
– Function
– Product
– Geography
– Process
– Customer
3.
3. Chain
Chain of of Command
Command
Authority
–
The rights inherent in a managerial position to give orders and to