Organizational Structure. Formal divisions, grouping, and coordination of job tasks.
Organizational Structure. 6 KEY ELEMENTS: Work Specialization Departmentalization Chain of Command Span of Control Centralization / Decentralization Formalization
Work Specialization The degree to which organizational tasks are sub-divided into individual jobs.
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Henry Ford
Work Specialization Productivity High High Low Impact of e conomies of specialization Impact of h uman d iseconomies
Departmentalization The basis on which jobs in an organization are grouped together.
Departmentalization BASES OF DEPARTMENTALIZATION: Functions Product Geography Process Customer
Chain of Command Unbroken line of authority from top to bottom, clarifying who reports to whom.
Chain of Command RELATED CONCEPTS: Authority Unity of Command
Span of Control Number of subordinates a manager can efficiently and effectively direct.
Centralization / Decentralization The degree to which decision making is concentrated at a single point or distributed.
Formalization The degree to which jobs within an organization are standardized.
Organizational Designs Simple Structure Bureaucracy Team Structure Virtual Organization
The Simple Structure Not elaborate. L ow degree of departmentalization. Wide spans of control. Centralized authority. Less formalization.
The Simple Structure Widely practiced in small businesses. Its strength is its simplicity. Fast, flexible, inexpensive, clear accountability. - Inadequate for large organizations.
Bureaucracy Standardization. Specialization. Formalized rules and regulations. Departmentalization. Centralized authority. Narrow span of control. Chain of command is followed.
Bureaucracy Perform standardized tasks efficiently. Economies of scale. Minimum duplication of personnel and equipment. Optimum use of less skilled mid / low level managers.
Bureaucracy Subunit conflicts may arise. Obsessive concern with rules.
Bureaucracy Asian Bureaucracies – top to bottom: Singapore , Hong Kong, Thailand, South Korea, Japan, Malaysia, Taiwan, Vietnam , China, Philippines, Indonesia, India .
Team Structure Breaks down departmental barriers. Decentralization of decision making. May complement / supplement a bureaucracy.
Virtual Organization Why own when you can rent? Small, core organization that outsources major business functions. Highly centralized. Little or no departmentalization. High flexibility. Management has less control.
Organizational Behaviour The study and application of knowledge about how people, individuals , and groups act in organizations .
Interpersonal Skills Skills that a person uses to interact with other people.
Interpersonal Skills Smile. Be appreciative. Pay attention to others. Practice active listening. Bring people together. Resolve conflicts. Communicate clearly. Humor them. Don't complain. See it from their side.
Interpersonal Skills Smile. Be appreciative. Pay attention to others. Practice active listening. Bring people together. Resolve conflicts. Communicate clearly. Humor them. Don't complain. See it from their side.