ORGANIZTIONAL STRUCTURE AND DESIGN - Coggle Diagram
ORGANIZTIONAL STRUCTURE AND DESIGN
Organizational structure and the six key elements
Org structure: The formal arrangement of jobs within
Organizational Design (involve 6 key elements)
Departmentalization: jobs are grouped together so work gets done in a coordinated and integrated way
Chain of command: Line of authority extending from upper levels to the lowest levels and clarifies who reports to who
Responsibility: assigned duties or expectation to perform
Unity of command: one boss and report to that one person
Authority: the right to tell ppl what to do
Work specialization: tasks in the org are divided into separate jobs with each step completed by a different person
Advantage: more efficient employees
Dis: boredom, fatigue, stress, increased turn over
Span of control: The no of employees who can be effectively and efficiently supervised by a manager
Centralization and decentralization
Centralization: decision making is concentrated at a single point of a org
Decentralization: pushed down to the managers who are closest to the action
Formalization: the degree to which jobs within the org are standardized and employee behavior is guided by rules and procedures
Mechanistic: a rigid and tightly controlled structure
Organic: Highly flexible and adaptable structure
Organizational design decisions
Traditional orgl design
Functional structure: departmentalization by function
Divisional structure: separate units under the control of the parent corporation
Simple structure: low departmentalization, wide spans of control, centralized authority, little formalization
A virtual organization consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects.
A network organization outsources some business functions to another company (Apple outsource production of Iphone to Foxconn)
A boundaryless organization tries to break down all external barriers or boundaries between the organization and outside stakeholders, often use virtual or network design
Task force is a temporary committee or team formed to tackle a specific short-term problem affecting several departments.
A project structure is one in which employees continuously work on projects.
Open innovation open for new ideas, innovation easily transfer in and out
The matrix structure assigns specialists from different functional departments to work on one or more projects being led by project managers
Telecommuting is a work arrangement in which employees work at home and are linked to the workplace by computer.
Team structure: The entire organization is made up of work groups or self-managed teams of empowered employees.
A compressed workweek is one in which employees work longer hours per day but fewer days per week.
Flextime is a scheduling system in which employees are required to work a specific number of hours a week but are free to vary those hours within certain limits.
Job sharing is when two or more people split a full-time job.
Contingent workers are temporary, freelance, or contract workers whose employment is contingent on demand for their services.
Selection of organizational structures: factors that influence the selection of org'l structure
Unit production (Organic)
Mass production (Mechanistic)
Process production (Organic)
Stable and simple environments: mechanistic design
Greater uncertainty: organic design
Size: org's size affect its structure, but once an org grow past a certain size, size has less influence on structure
Strategy: an org's structure should facilitate achievement, it's only logical that strategy and structure are closely linked