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OP Chapter 8: Organisational Structure & Design - Part 1 (Factors…
OP Chapter 8: Organisational Structure & Design - Part 1
Factors influencing organisational design
Technology
Combination of resources, knowledge, techniques to convert input into output
If org. doesn't adapt structure to meet requirements of technology, it will not succeed
Environment
Complexity
Richness
Interdependence
Uncertainty
Env. Forces
General
Specific
Scale
Staff growth -> +++Complexity
Rules & systems substitute direct supervision
Multiple products, processes, locations required complex design
Strategy
Process of positioning org. in the environment + implementing actions to compete successfully
Structure follows STRATEGY
Strategy driven by org. goals & visions
Organisational Design
Process of choosing and implementing structural config.
Formal structure
Intended config. of positions, jobs, lines of authority among parts of an organisation
Organisational Goals
Output goals
Define org's type of business
Target primary beneficiaries and CSR
System goals
Conditions INSIDE org. that enhance org. survival
Growth
Harmony
Stability
Flexibility
Organisational Controls
Mechanisms to keep actions and outputs within predetermined limits
Output controls
Manage by exception
Flexibly & creative
Process Controls
Policies, rules, & procedures
Formalise & standardise
Manage quality
Information security
Organisational Design & Coordination
Coordination
Impersonal
Budgets, policies, procedures, systems
Mechanisms to link actions of org. units into a pattern
Personal
Dialogue thru formal/informal channels
Design
Mechanistic
Procedures
Systems
Emphasis on middle mgmt authority
Organic
More responsive to change
Delegated responsibility
Flexible