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1、CHAPTER 5 Basic Organization Design *1郭志文 2001 Copyright Basic Organization Designs nOrganization design: process in which managers develop/change their organizations structure nThe six elements of structure nWork specialization nChain of command nSpan of control nAuthority & responsibility nCentral
2、ization v.s decentralization ndepartmentalization Date2郭志文 2001 Copyright 1. Work specialization nA job is broken down into a number of steps nEach step is completed by a separate individual nIndividuals specialize in doing part of an activity, rather than the entire activity nCan lead to: boredom,
3、fatigue, stress, low productivity, Date3郭志文 2001 Copyright 2. Chain of command nEarly management writers said that an employee should only have one boss/superior to whom he/she is responsible Date4郭志文 2001 Copyright 3. Span of control nHow many employees can a manager efficiently and effectively dir
4、ect? nEarly writers favored small spans of control (usually no more than six workers) nContingency variable: span of control depends on the level of management Date5郭志文 2001 Copyright 4. Authority and responsibility nAuthority: the rights inherent in a managerial position to give orders and expect t
5、hem to be obeyed nResponsibility: an obligation to perform assigned activities nTypes of authority: nLine authority entitles a manager to direct the work of an employee nStaff authority positions that support, assist, and advise the holders of authority Date6郭志文 2001 Copyright authority and power nT
6、ypes of power nCoercive power: power based on fear nReward power: based on ability to distribute something others value nLegitimate power: based on ones position in formal hierarchy nExpert power: based on ones expertise, special skills, or knowledge nReferent power: based on identification with a p
7、erson who has desirable resources or personal traits Date7郭志文 2001 Copyright 5. Centralization v.s decentralization nCentralization: when decision- making authority is kept at a higher level in the organization nDecentralization: when decision- making authority is pushed down to the lowest levels of
8、 an organization Date8郭志文 2001 Copyright 6. Departmentalization nEarly writers said that activities in organization should be specialized and grouped into departments nBut how? nFunctional departmentalization: the grouping of activities by the functions they perform nProduct departmentalization:grou
9、ping of activities by product produced nCustomer departmentalization: grouping of activities by common customers nGeographic departmentalization: grouping of activities by territory nProcess departmentalization: grouping of activities by work or customer flow Date9郭志文 2001 Copyright Contingency vari
10、ables affecting structure nMechanistic v.s organic: nMechanistic organization (bureaucracy) was the result of combining the 6 elements of structure nOrganic organization: is a highly adaptive form that allows it to change rapidly as required (See exhibit 5-11, page 166) nStrategy and structure: orga
11、nizational structure should follow strategy nSize and structure:larger organizations are more bureaucratic nTechnology and structure: routine technology go along with a standardized structure nEnvironment and structure: mechanistic organizations do not respond well to rapid organizational change Dat
12、e10郭志文 2001 Copyright Organization Design applications nA simple structure: an organization that is high in centralization, but low in specialization and formalization nIt is flat”, and is usually used in small businesses nA Bureaucracy: as the number of employees rises, more formal rules and regula
13、tions are implemented, departments are created, and levels of management added: Two bureaucratic design options: nThe functional structure nThe divisional structure Date11郭志文 2001 Copyright Functional structure nAn organization in which similar and related occupational specialties are grouped togeth
14、er (see functional departmentalization) nStrengths: economies of scale, minimizes duplication of personnel & equipment, employees are comfortable among peers nWeaknesses: organization often loses sight of its best interests in the pursuit of functional goals Date12郭志文 2001 Copyright Divisional struc
15、ture nAn organization made up of self- contained units nStrengths: it focuses on results, division managers have full responsibility for a product/service, it frees up headquarter staff nWeaknesses: duplication of activities and resources will lead to an increase in costs and a reduction in efficien
16、cy Date13郭志文 2001 Copyright Matrix structure nAn organization in which specialists from functional departments are assigned to work on one or more projects led by a project manager nIt offers the advantages that accrue from specialization, and the focus and accountability from a divisional structure nStrength: it can facilitate coordination of a multiple set of complex and interdependent projects while still retaining the economies that result from keeping sp
