Module 8 – Organizing for Action Chapter 6
Dec 23, 2015
Module 8 – Organizing for Action
Chapter 6
Learning Objectives
LO 1 Define the characteristics of organization structure: organic or mechanistic, differentiation, and integration.
LO 2 Summarize how authority operates and who generally holds top authority in a company.
LO 3 Discuss how span of control affects structure and managerial effectiveness.
LO 4 Explain how to delegate effectively.
6-2
Learning Objectives (cont.)
LO5 Distinguish between centralized and decentralized organizations.
LO6 Define basic types of organization structures, and summarize their strengths.
LO7 Describe important mechanisms used to coordinate work.
LO8 Discuss how organizations can improve their agility through their strategy, commitment to customers, and use of technology.
6-3
Organizing
• Definition– The deployment of organizational resources to achieve
strategic goals– The process by which managers establish the structure
of working relationships among employees to achieve goals
Organization Structure
• The set of formal tasks assigned to individuals and departments
• Formal reporting relationships• Mechanistic (Bureaucratic/Hierarchical) to
Organic (Learning/Flat/Horizontal)
Factors Influencing Structure
• Organizational environment• Strategy• Technology• Human resources
Organizational chart
• Schematic representation of these arrangements and relationships – The reporting structure and division of labor in an
organization
6-7
Conventional Organization Chart
Differentiation
• Definition– Different units, different task, different skills,
different ways• Specialization • Division of labor
Big problem
• Integration• Coordination
Vertical structure
• Definition• Authority
Delegation
• Definition • Key distinctions
– Responsibility– Authority– Accountability
• Advantages
Decentralization
• Centralized organization– An organization in which high-level executives
make most decisions and pass them down to lower levels for implementation
• Decentralized organization– An organization in which lower-level managers
make important decisions– Relationship with delegation????
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Centralized Organization
Decentralized Organization
Horizontal structure
Horizontal structure
Horizontal structure
Horizontal structure
Horizontal structure
• Function• Divisional• Matrix
The Functional Organization
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The Divisional Organization
6-23
Matrix Organizational Structure
6-24
Matrix Organizational Structure
6-25Figure 6.5
A
The Network Organization
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Coordination
• Standardization • Plans • Mutual adjustment
Organizational agility
• Definition• Poster child
Organizational agility
• Core competencies
Organizational agility
• Core competencies• Strategic alliances
Organizational agility
• Core competencies• Strategic alliances• Learning organization
Organizational agility
• Core competencies• Strategic alliances• Learning organization• High-involvement organization
Organizational size
Organizational size
Organizational size