Académique Documents
Professionnel Documents
Culture Documents
Managing Organizational
Structure and Culture
McGraw-Hill/Irwin
Contemporary Management, 5/e
Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
10-4
Organizational Structure
Organizational Architecture
The organizational structure, control
systems, culture, and human resource
management systems that together
determine how
efficiently and
effectively
organizational
resources are used.
10-5
Designing Organizational Structure
Organizing
The process by which managers establish
working relationships among employees to
achieve goals.
Organizational Structure
Formal system of task and reporting
relationships showing how workers use
resources.
10-6
Designing Organizational Structure
Organizational design
The process by which managers create a
specific type of organizational structure and
culture so that a company can operate in
the most efficient and effective way
10-7
Factors Affecting Organizational Structure
Figure 10.1
10-8
The Organizational Environment
10-9
The Organizational Environment
Strategy
Different strategies require the use of
different structures.
A differentiation strategy needs a flexible
structure, low cost may need a more
formal structure.
Increased vertical integration or
diversification also requires a more
flexible structure.
10-10
The Organizational Environment
Technology
The combination of skills, knowledge, tools,
equipment, computers and machines used
in the organization.
More complex technology makes it harder
for managers to
regulate the
organization.
10-11
The Organizational Environment
Technology
Technology can be measured by:
Task variety: the number of new problems
a manager encounters.
Task analyzability: the availability of
programmed solutions to a manager to
solve problems.
10-12
The Organizational Environment
Human Resources
Highly skilled workers whose jobs require
working in teams usually need a more
flexible structure.
Higher skilled workers (e.g., CPAs and
doctors) often have internalized professional
norms and values.
10-13
The Organizational Environment
Human Resources
Managers must take into account all four
factors (environment, strategy, technology
and human resources) when designing the
structure of the organization.
10-14
The Organizational Environment
10-15
Job Design
Job Design
The process by which managers decide
how to divide tasks into specific jobs.
The appropriate division of labor results in
an effective and efficient workforce.
10-16
Question?
10-17
Job Design
Job Simplification
The process of reducing the tasks each
worker performs.
Too much simplification and boredom
results.
10-18
Job Design
Job Enlargement
Increasing the number of different tasks in a
given job by changing the division of labor
Job Enrichment
Increasing the degree of responsibility a
worker has over a job
10-19
Job Enrichment
10-20
The Job Characteristics Model
Figure 10.2
10-21
Job Characteristics Model
10-22
Grouping Jobs into Functions
Function
Group of people, working together, who
possess similar skills or use the same kind
of knowledge, tools, or techniques to
perform their jobs
10-23
Grouping Jobs into Functions
Functional Structure
An organizational structure composed of all
the departments that an organization
requires to produce its goods or services.
10-24
Functional Structure
Advantages
Encourages learning from others doing
similar jobs.
Easy for managers to monitor and evaluate
workers.
Allows managers to create the set of
functions they need in order to scan and
monitor the competitive environment
10-25
Functional Structure
Disadvantages
Difficult for departments to communicate
with others.
Preoccupation with own department and
losing sight of organizational goals.
10-26
The
Functional
Structure of
Pier 1
Imports
Figure10.3
10-27
Divisional Structures
Divisional Structure
Managers create a series of business units
to produce a specific kind of product for a
specific kind of customer
10-28
Product,
Market, and
Geographic
Structures
Figure 10.4
10-29
Types of Divisional Structures
Product Structure
Managers place each distinct product line or
business in its own self-contained division
Divisional managers have the responsibility
for devising an appropriate business-level
strategy to allow the division to compete
effectively in its industry
10-30
Product Structure
10-31
Types of Divisional Structures
Geographic Structure
Divisions are broken down by geographic
location
Global geographic structure
Managers locate different divisions in each of
the world regions where the organization
operates.
Generally, occurs when managers are
pursuing a multi-domestic strategy
10-32
Types of Divisional Structures
10-33
Global Geographic and
Global Product Structures
Figure 10.5
10-34
Types of Divisional Structures
Market Structure
Groups divisions according to the particular
kinds of customers they serve
Allows managers to be responsive to the
needs of their customers and act flexibly in
making decisions in response to customers
changing needs
10-35
Matrix Design Structure
Matrix Structure
An organizational structure that
simultaneously groups people and
resources by function and product.
Results in a complex network of superior-
subordinate reporting relationships.
The structure is very flexible and can respond
rapidly to the need for change.
Each employee has two bosses (functional
manager and product manager) and possibly
cannot satisfy both.
10-36
Matrix Structure
Figure 10.6
10-37
Discussion Question?
10-38
Product Team Design Structure
10-39
Product Team Design Structure
10-40
Product Team Structure
Hybrid Structure
The structure of a large organization that
has many divisions and simultaneously
uses many different organizational
structures
10-42
Federateds Hybrid Structure
Figure 10.7
10-43
Question?
10-44
Coordinating Functions:
Allocating Authority
Authority
The power vested in a manager to make
decisions and use resources to achieve
organizational goals by virtue of his position
in an organization
10-45
Coordinating Functions:
Allocating Authority
Hierarchy of Authority
An organizations chain of command,
specifying the relative authority of each
manager.
Span of Control: the number of
subordinates who report directly to a
manager
10-46
Allocating Authority
Line Manager
Someone in the direct line or chain of
command who has formal authority over
people and resources
Staff Manager
Managers who are functional-area
specialists that give advice to line
managers.
10-47
The
Hierarchy
of Authority
and Span of
Control at
McDonalds
Corporation
Figure 10.8
10-48
Tall and Flat Organizations
10-49
Tall Organizations
Figure 10.9
10-50
Tall and Flat Organizations
10-51
Flat Organizations
Figure 10.9
10-52
Minimum Chain of Command
10-53
Centralization and Decentralization of
Authority
Decentralizing authority
giving lower-level managers and non-
managerial employees the right to make
important decisions about how to use
organizational resources
10-54
Decentralizing Authority
Disadvantages
Teams may begin to pursue their own goals
at the expense of organizational goals
Can result in a lack of communication
among divisions
10-55
Integrating Mechanisms
Figure 10.10
10-56
Organizational Culture
Organizational culture
shared set of beliefs, expectations, values,
and norms that influence how members of
an organization relate to one another and
cooperate to achieve organizational goals
10-57
Sources of an Organizations Culture
Figure 10.11
10-58
Characteristics of Organizational
Members
10-59
Organizational Ethics
Organizational Ethics
moral values, beliefs, and rules that
establish the appropriate way for an
organization and its members to deal with
each other and people outside the
organization
10-60
Employment Relationship
10-61
Organizational Structure
In a centralized organization:
people have little autonomy
norms that focus on being cautious, obeying
authority, and respecting traditions emerge
predictability and stability are desired goals
10-62
Organizational Structure
10-63
Strong, Adaptive Cultures Versus
Weak, Inert Cultures
Adaptive cultures
values and norms help an organization to
build momentum and to grow and change
as needed to achieve
its goals and be
effective
10-64
Strong, Adaptive Cultures Versus
Weak, Inert Cultures
Inert cultures
Those that lead to values and norms that
fail to motivate or inspire employees
Lead to stagnation and often failure over
time
10-65
Movie Example: Apollo 13
What organizational
structure does
NASA use
to handle a moon
launch?
10-66