Organizational designs and employee behavior ob presentation final 07 32
29
BZUPAGES.COM
-
Upload
meher-nisha -
Category
Education
-
view
5.323 -
download
0
description
Organizational Structure
Transcript of Organizational designs and employee behavior ob presentation final 07 32
BZUPAGES.COM
BZUPAGES.COM
UNIT -2
BZUPAGES.COM
What is Organization Structure?
Common Organization Designs
New Design Options
Why Do Structures Differ?
Organizational Designs and Employee Behavior
Organization Structure: Its Determinants and Outcomes
Six Elements of Organizational
Structure
BZUPAGES.COM
1. Work Specialization
The degree to which tasks in the organizations are subdivided into separate jobs.
Also referred to Division of Labor.
Eg. In Ford Company, Every worker was assigned a specific, repetitive task.
BZUPAGES.COM
BZUPAGES.COM
Unbroken Line of Authority Two concepts: Authority and Unity of command
Less relevance today
BZUPAGES.COM
The number of subordinates a manger can efficiently and effectively direct.
Wider span of control to reduce cut overhead, speed up decision making, increase flexibility, get closer to customers empower employees.
BZUPAGES.COM
Centralization is the degree to which decision making is concentrated at a single point in the organization.
In Decentralization, the lower level personnel provide input the discretion to make decisions
Recent trend is towards Decentralization to take decisions more easily
BZUPAGES.COM
Refers to the degree to which jobs within the organization are standardized.
Formalization is high, minimum amount of discretion about job uniform output.
Low formalization non programmed and employees have a great deal of freedom to exercise discretion
Why Do Structures Differ?
BZUPAGES.COM
Mechanistic Model:
A structure characterized by:
Extensive departmentalization
High formalization
Centralization
Restricted Information Flow
BZUPAGES.COM
Organic Model:
A structure characterized by:
Flat cross-functional teams has low formalization Relies on participative decision making Free Flow of information
BZUPAGES.COM
BZUPAGES.COM
Strategy
Organization Size
Technology
Environment
BZUPAGES.COM
Organization goals are achieved by Strategies
Strategy and Structure should be closely linked
Structure must follow Strategy
Change in Organization’s Strategy should be reflected
changes in it’s Structure to support this change
BZUPAGES.COM
1- Innovation Strategy:A strategy that emphasizes the introduction of major new products and services. e.g. Apple
3- Imitation Strategy:A strategy that seeks to move into new products or new markets only after their viability has already been proven.
e.g. HP
2- Cost-minimization Strategy:A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. e.g. Wal-Mart
BZUPAGES.COM
Strategy Structural Option
Innovation Organic: A loose structure; low specialization, low formalization, decentralized
Cost minimization Mechanistic: Tight control; extensive work specialization, high formalization, high centralization
Imitation Mechanistic and organic: Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings
BZUPAGES.COM
Organization’s Size Significantly affects it’s structure
Organizations with 2000 and more employees are Called Large Organizations
Increasing Employees does not affect the larger organizations
But Increasing Employees can affect the shifting of structure for Small Organizations
BZUPAGES.COM
“As an organization grows larger, it becomes more mechanistic.”
Characteristics of large organizations:
More specialization More Departmentalization More hierarchal structure More rules and regulations than Smaller
organization
BZUPAGES.COM
Technology:
“How an organization transfers its inputs into outputs.”
Every Organization has at-least one technology for
converting Financial, Human and physical resources
into products and services.
Examples: Ford Motors uses “Assembly-line process” for it’s
products Universities normally uses “Formal lecture method”
BZUPAGES.COM
Routine technologies are associated with long, departmentalized structures and formalization in organizations.
Routine technologies leads to centralization when formalization is low.
Non-routine technologies are associated with
delegated decision authority.
BZUPAGES.COM
Research Findings: Work specialization contributes to higher employee
productivity, but it reduces job satisfaction. The benefits of specialization have decreased
rapidly as employees seek more intrinsically rewarding jobs. The effect of span of control on employee
performance is contingent upon individual differences and abilities, task structures, and other organizational factors. Participative decision making in decentralized Organizations is positively related to job satisfaction.
BZUPAGES.COM
BZUPAGES.COM
BZUPAGES.COM
BZUPAGES.COM
