False

True

True

False

Defines how jobs tasks are formally divided, grouped, and coordinated.

Key Elements to be addressed:

• Work Specialization
• Departmentalization
• Chain of Command
• Span of Control
• Centralization
• Decentralization
• Formalization

• Division of Labor
• Describes the degree to which activities in the organization are subdivided into seperate jobs
• Creates problems when carried too far

Basis by which jobs are grouped together:

• Function
• Product
• Geography
• Process
• Customer

• Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom
• Authority
• Unity of Command Principle
• Fewer organizations find this effective

• Determines the number of levels and managers an organization has
• Trend in recent years has been toward wider spans of control
• Wider span depends on employees knowing their jobs well

The changing nature of the workforce includes all of the following except:

choices

Technology

competiton

urbanization

social trends

All of the above.

all of the above.

 The formal framework of how job tasks are  divided, grouped, and coordinated based on the organization’s Strategy, Size, Technology, and Environment.

  + Organizational Design is paradoxical in that it requires fragmentation and then, integration to create the optimal design for a given organization.

7 Key Elements:

Formalization

The Key Question   The Answer Is Provided By  

1. To what degree are articles subdivided into separate jobs? Work Specialization

2. On what baseis will jobs be grouped together? Departmentalization

3. To whom do individuals and groups report? Chain, Unity of Command

4. How many individuals can a manager efficiently and effectively direct? Span of Control

5. Where does decision-making authority lie? Centralizationa nd Decentralization

6. To what degree will there be rules and regulations  to direct employees and managers? Formalization

1).  Work Specialization:  The degree to which tasks in the organization are subdivided into separate jobs, also called the Division of Labor. 

> Some work specialization requires unique skills and expertise.  However, this is not always the case. 

> Extreme specialization or narrowing of jobs can result in “McDonaldization” -- the ultra standardization and simplification of jobs.

Once considered an unending source of productivity,  there are + and -- to be considered:  

+  Economies:  Efficient use of employee skills, less between-job downtime, specialized training, allows use of specialized equipment

-- Diseconomies:  Boredom, fatigue, stress, low productivity, poor quality, absenteeism, turnover, potential for repetitive-motion injuries

Departmentalization: The basis by which jobs are grouped together

Grouping Activities By:

3. Chain of Command: The unbroken line of authority that extends from the top of  the organization to the lowest echelon and clarifies who reports to whom.

  >  Responsibility:  The obligation or expectation to perform the functions of a given position.

 > Authority:  The rights inherent in a managerial position to give orders and expect the orders to be obeyed; this concept relates to Legitimate (or Position) Power.

BEWARE THE POSITION THAT HAS HIGH RESPONSIBILITY AND LITTLE OR NO AUTHORITY!!!

4. Unity of Command: A subordinate shoudl have only one superior to whom he or she is directly responsible.

This concept is violated by the Matrix ORganizational Design discussed later.

5. Span of Control: The number of subordinates a manager can efficently and effectively direct.

- Span of control ultimately determines the number of layers of management in an organization.  (See graphic on next slide)

Thus, wider spans increase organizational efficiency (e.g., reduces costs, fewer layers of communication, greater employee flexibility, etc.) to a point, at which effectiveness (performance) will suffer because of the lack of leadership and support.

The Classical View of Span of Control

= 6 Employees.

> The trend in recent years has been to widen spans.

One antidote:  Increase employee training and create skill redundancy with other colleagues to reduce the reliance on managers.

6).  Centralization and Decentralization:     Addresses who, where, and how decisions are made.

   -  Centralization:  The degree to which decision making is concentrated at a single point in the organization.

- Decentralization: The degree to which decision making is spread throughout the organization; the current trend (because it increases flexibility/responsiveness).

NOTE:  This element has changed greatly because of Quality Management

7).  Formalization:  The degree to which jobs within the organization are standardized and employee behavior is guided by rules/procedures.

> Freedom and formalization are inversely related. The more formal the job, the less freedom the person has in that job.

> The type of work done in an organization also drives the level of formalization.  (Example:  making auto parts vs. designing ad campaigns)

Mechanistic Model

A structure characterized that is high on the seven key organizational structure factors.

Organic Model

A structure that is low on the seven key organizational structure factors.

Strategy   Structural Option
  

Innovation  Organic:  A loose structure; low specialization, low formalization, decentralized

Cost minimization   Mechanistic:  Tight control; extensive work specialization, high formalization, high centralization

Imitation   Mechanistic and Organic:  Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings

Innovation Strategy
A strategy that emphasizes the introduction of major new products and services.

Cost-minimization Strategy
A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.

Imitation Strategy
A strategy that seeks to move into new products or new markets only after their viability has already been proven.

Size

The size of an organization affects its structure.  As an organization grows larger, it becomes more mechanistic.

Size

The size of an organization affects its structure.  As an organization grows larger, it becomes more mechanistic.

 ØTechnology:  How an organization transfers its inputs into outputs.

Characteristics of Routineness (automated or standardized) or Non-Routineness (customized) in Activities:

Environment

Institutions or forces outside the organization that potentially affect the organization’s performance.

Key Dimensions- (See Graphic)

Simple Structure

A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

> Very common when the owner also manages the company.

Bureaucracy

A simple design that becomes bureaucratic through growth.

A structure with highly routine operating tasks achieved through specialization, formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision-making that follows the chain of command

Team Structure:  The use of teams as the central device to coordinate work activities.

> Basic design congruent with the implementation of Quality Management or organizations pursuing strategies requiring a more organic design.

Characteristics:

Matrix Structure:  A structure that creates dual lines of authority and combines functional and product departmentalization.

> Became a more popular design because of Quality Management.

Key Elements:

Virtual Organization:  A small, core organization that outsources its major business functions. 

> Highly centralized with little or no departmentalization.

> Also called the “Network” or “Modular” organization.  

NOTE:  Do not confuse this concept with “telecommuting” or “off-shoring” of jobs.

Concepts:

+ Provides maximum flexibility while concentrating    on what the organization does best.

-- Reduced control over key parts of the business.

Boundaryless Organization

An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.

T-Form (Technology-Based) Concept:

> Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries.

> Breakdown external barriers to customers and suppliers.

Organizational Designs and

Employee Behavior

Research Findings:

TEXT EXAMPLES OF CURRENT FORCES

  - Nature of the Workforce          

  - Technology  

  - Economic Shocks     

  - Competition  

  - Social Trends  

  - World Politics

  These forces alter the Economic, Social, 

  and Political landscape of any society.

- Change is inevitable, though its speed varies across organizations. 

- Change can come from external sources (such as factors on the previous slide) or internal sources (e.g., declining productivity, crises such as a strike or major resignation, employee expectations, work climate such as lay-offs or poor morale). 

- The key is to for the organization to run change, (not have change run the organization).  It can take years to create sustained change.  Managers must plug away while keeping an eye on the organizational mission.

Change: Making things Different

Planned Change: A more proactive stance.  Includes activities that are intentional and goal-oriented to better help the organization adapt to changes in its external environment. 

Change Agents: Act as catalysts and assume the responsibility for manageing change activities

-- Some resistance to change can be good for the organization, because it can create “functional conflict.”

-- There are two forms of Resistance to change:  Which Is Better?

• Selective Information Processing
• Habit
• Security
• Economic Factors
• Fear of the Unknown

Tactics for dealing with resistance to change:

Innovate                     -----------------        Avoid Mistakes

Think Long Term       -----------------        Deliver Results Now

Cut Costs                   -----------------        Increase Morale

Reduce Staff              -----------------        Improve Teamwork

Be Flexible                 -----------------        Respect the Rules

Collaborate                -----------------        Compete

Decentralize              ------------------        Retain Control

Specialize                  ------------------        Be Opportunistic

- Developed in WWII
- The “Force Field Analysis”(considered on the the
    seven “old” Quality Management Tools) was
    developed to study the dynamics of a specific change.

Unfreezing -> Movement -> Refreezing

Unfreezing:  Change efforts to overcome the pressures of both individual resistance and group conformity.

Movement:  Change process that transforms the organization from the status quo to a desired end state.

Refreezing:  Stabilizing a change intervention by balancing driving and restraining forces.

Restraining Forces
Forces that hinder movement from the existing equilibrium.

Driving Forces
Forces that direct behavior away from the status quo.

From that, he came up with an eight-step plan, which mirrors -- in a more detailed manner -- Lewin’s theory.  See Graphic on next slide:  Steps 1 - 4 = Unfreezing, Steps 5 - 7 = Movement, Step 8 = Refreezing

A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicates.

> The PDSA (Plan-Do-Study-Act) Cycle from Quality Management can also be used on any part of the “system” (i.e., machines, methods, manpower, materials, environment).

Process Steps: 1) Diagnosis  2) Analysis  3) Feedback  4) Action   5) Evaluation

Action Research Benefits:

- Problem-focused rather than solution -centered.

- Heavy employee involvement reduces resistance to change

A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.

Intervention Techniques:

Stress: The Ugly Side

Too Much Work, Too Little Time

With companies downsizing workers, those who remain find their jobs are demanding increasing amounts of time and energy.  A national sample of U.S. employees finds that they:

  Feel overworked         54%

  Are overwhelmed by workload         55%

  Lack time for reflection         59%

  Don’t have time to complete tasks    56%

  Must multi-task too much         45%

Stress:  A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what s/he desires and for which the outcome is perceived to be both uncertain and important.

> Stress falls along “class” lines in organizations (i.e., primary & secondary labor forces).

> NOT all stress is bad!  The right amount can help us to stretch and grow as humans.

 “Pressure is a privilege.”  -- Billie Jean King

Individual Approaches

- Implementing time Management

- Increasing Physical Exercise

- Relaxation training

- Expanding social support network

Learning Organization

An organization that has developed the continuous capacity to adapt and change.

+ Also called a “holographic organization” where the whole is contained in all of the parts.

Single Loop Learning: Errors are detected and corrected in relation to a set of operating norms using past routines and present policies.

Double-Loop Learning: Errors are detected and corrected by taking a "double-look" by questioning the operating norms and then, modifying them.

Questions for culture-bound organizations:

defines how job tasks are formally divided, grouped, and coordinated.  Managers need to address six key elements when they design and organizations structure:

1) Work Specialization

2) Departmentalization

3) Chain of Command

4) Span of Control

5) Centralization and Decentralization

6) Formalization

once jobs have been divided up through work specialization, you need to group these jobs together so that common tasks can be coordinated.

ways that jobs can be grouped:

1) Functional - advantage to this type of grouping is obtaining efficiencies from putting like specialists together.

2)Product - jobs can be departmentalized by the type of products the organization produces.

3) Geography - organized by territory or geography

4) Process - grouped by each department specialization (ie casting, press, inspection).  Can also be used for processing customers as well.

5) Customer - Type of customer the orgnization seeks to reach (ie consumers, large corp, small businesses).

an unbroken line of authority that extends from the top of the orgnization to its lowest echelon and clarifies who reports to whom.

You can't discuss without two complementary concepts:  Authority and Unity-of-Command

Authority:  referes to the rights inherent in a managerial position to give orders and expect the orders to be obeyed.

unity of command:  it states that a person should have one and only one sperior to whojm that person is irectly responsible.

Centralization: Refers to the degree to which decision making is concentrated at a single point in the organization

In highly centralizaed organizations, top managers make all the decisions.  Lower-level managers merely carry out top management's directives.  At the other extreme are decentralized orgs in which decision making is pushed down to the managers who are closest to the action.

1) The Simple Structure

2) The Bureaucracy

3) The Matrix Structure

combines two forms of deparmentalization:  functional and product.

The most obvious structureal characteristic is that it breaks the unity-of-command concept.  Employees have tow bosses - their functional department managers and their product managers.  Therefore, the matrix has a dual chain of command.

1) Team structure

2) Virtual Organization

3) Boundaryless Organization

Mechanistic Model: generally synonymous with the bureaucrazy in that is has extensive departmentalization, high formalizaiton, a limited information network (mostly downward communciation), and little participation by low-level members in decision making.

Organic Model:  Looks a lot like boundaryless org.  It's flat, uses cross-hierarchial and cross-function teams, has low formalization, possesses a comprehehensive info network and involves high participation in decision making.

Innovation Strategy:  To what degree an org. introduce major new products or services. 

Cost-minimization Strategy:  tightly controls costs, refrains from incurring unnecessary innovation or marketing expenses, and cuts prices in selling the basic product.

Imitation Strategy:  captitalize on the best of both Innovation and Cost-minimization strategy.  They seek to minismize risk and maximize opportunity for profit.  Their strategy is to move into new products or new markets only after viability has been proven by innovators.

An organization's internal structure contributes to explaining and predicting employee behavior.  That is, in addition to individual and group factors, the structural relationships in which people work have an important bearing on their attitudes and behavior.

What's the basis for the argument that structure has an effect on both attitudes and behavior?  Because an organization's structure reduces ambiguity and clarifies relationships, it shapes employees' attitudes and facilitates and motivates them to higher levels of performance.

Of course, structure also contrains employees , to the extent that it limits and controls what they do.  For example, an organization gives employees little autonomy when it is structured around high levels of formalization and specialization, strict adherence to the chain of command, limited delegation of authority, and narrow spans of control.  Controls in such organizations are tight,k and behaviro will tend to vary within a narrow rant.  In contrast, an organization structured around limited specialization, low formalization, wide spands of control, and the like provides employees greater freedom and thus, will be characterized by greater behavioral diversity.