Organizational Behavior & Organization Designs

Organizational Behavior & Organization Designs Presented To :

Mam Sana Ashraf

Presented By :

Abdullah Razaq (314-Ms 070)Amna Maqsood (313-Ms 602)Azadar Hussain (313-Ms 593)M. Zeeshan (315-Ms 084)

Introduction of Organization Designs

Organizational design refers to the way managers structure their organization to reach the organization’s goals.

Structural elements include

Allocation of duties, tasks, and responsibilities between departments and individuals.

Reporting relationships.

Number of levels.

Introduction of Organization Designs Conti…

An incomplete picture because of informal arrangements and underlying behavioral processes.

Two basic goals of organizational design

Get information to decision makers.

Coordinate the interdependent parts of an organization.

Forms of Organizational Design

Three major forms Functional, Divisional, Matrix,

Combine functional and divisional designs to get a hybrid design

Several variations of the divisional design Several evolving forms of organizational

design

Organizational Design by Function

Groups tasks of the organization according to the activities they perform

Typically configured into departments such as manufacturing, engineering, accounting, marketing, . . .

Functional configurations can vary from one organization to another depending on tasks and goals

Organizational Design by Function Conti…

Strategy Focused on a few products or

services in well defined markets with few competitors

External environment Stable, Simple, Little uncertainty

Technical processRoutine with little

interdependence with other parts of the organization

Each major functional area helps align the company with each sector


Line and staff

Line does the major operating tasksStaff gives support and serve in

advisory roles. Emphasizes technical skills within each

function

Individuals work with others who share common backgrounds and views


Strengths Specialization

Brings specialists together

Collegial relationships develop among specialists

Clear career paths for specialists


Weaknesses

Does not help managers respond quickly to external changes.

Emphasis on specialization promotes a tunnel-vision view of the goal of the function.

Functional design can produce a set of widely accepted behaviors and perceptions with the organization.

Organizational Design by Division

Uses decentralization.

Divisions formed around products, services, locations, customers, programs, or technical process.

Often evolves from a functional design.

Organizational Design by Division Conti…

Strategy Focused on different products, services, customers, or

operating locations.

External environment Complex, fast changing, with moderate to high

uncertainty.

Technical process Non routine and interdependent with others parts of the

organization

Size Large


Strengths

Easily adapts to differences in products, services, clients, location, and the like. For example, products and differ in how manufactured and marketed.

Products, services, and customers are highly visible.

Often appear in division names.


WeaknessesLoses economies of scale because many functions

such as accounting are duplicated within the divisions.

Technical specialization is more diffuse compared to a functional design.

Hard to get uniform application of policies and procedures across divisions

Hybrid Organizational Design

Hybrid design uses both functions and divisions.

The divisions decentralize some functions, and the headquarters location centralizes others.

Centralized functions often are the costly ones.

Hybrid Organizational Design Conti…

Strategy Focused on many products or services

External environment Fast changing, moderate to high uncertainty, complex

Technical process Both routine and non routine, high interdependence

with functions and divisions

Size Large

Hybrid Organizational Design Conti…

Weaknesses

Focus on division goals can lose total organization view.

Non-uniform application of organizational policies.

Potential for high administrative overhead if staff expands without control.

Matrix Organizational Design

Used when two sectors of the external environment demand management attention.

Typically responding to the customer and technical parts of the environment.

Customers have special needs

Technology changes fast

Matrix Organizational Design Conti…

Conditions under which an organization may choose a matrix design:

Pressures from the external environment for a dual focus.

High uncertainty within the multiple sectors of the external environment

Constraints on human and physical resources


Strengths

Responsive, flexible, efficient use of costly resources.

Potentially high levels of human motivation and involvement.

Managers can respond fast to market changes.

People get information about a total project, not only about their specialty.


Weaknesses

High levels of ambiguity because of multiple authority relationships.

Ambiguity can encourage power struggles among managers.

Multiple authority relationships can give opposing demands to people.

High conflict potential can reach dysfunctional levels and act as significant stressors for people in matrix organizations

Types of Organizational Designs

Organizational designs fall into two categories

Traditional.Contemporary.

Traditional Designs Include simple structure, functional

structure, and divisional structure. Contemporary Designs

Include team structure, matrix structure, project structure, boundary less organization, and the learning organization.

Traditional Designs

Simple Structure

A simple structure is defined as a design with low departmentalization, wide spans of control, centralized authority, and little formalization. This type of design is very common in small start up business.

Traditional Designs Conti…

Divisional Structure

The divisional structure is a type of organizational structure that groups each organizational function into a division.

These division can correspond to either products or geographies.

Traditional Designs Conti…

Functional Structure

A functional structure is defined as a design that groups similar or related occupational specialties together. It is the functional approach to departmentalization applied to the entire organization.

Contemporary Designs Conti…

Team Structure

A team structure is a design in which an organization is made up of teams, and each team works towards a common goal.

Employees are more involved and empowered.


Project Structure

A project structure is an organizational structure in which employees continuously work on projects. This is like a matrix structure; as one project is completed, employees move on to the next project.


Matrix Structure

A matrix structure is one that assigns specialists from different functional areas to work on projects but who return to their areas when the project is completed.


Learning Organization

A learning organization is defined as an organization that has developed the capacity to continuously learn, adapt, and change. In order to have a learning organization a company must have very knowledgeable employees who are able to share their knowledge with others and be able to apply it in a work environment.


Boundary less Organization

A boundary less organization is one in which its design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. In other words it is an unstructured design.

A Process View of Organizational Design

Discards the view of packaging duties and tasks along functional or divisional lines.

The organization is a set of interconnected processes that weave across multiple functions.

Focuses on the results of a process not on people’s skills or functions.

People have responsibility for all or part of a process with decision authority over those parts.

Organizational Behavior

Organizational Behavior the study of human behavior, attitudes, and performance in organizations

Value of OB: Helps people attain the competencies needed to become

effective employees, team leaders/members, or managers

Competency: An interrelated set of abilities, behaviors, attitudes, and

knowledge needed by an individual to be effective in most professional and managerial positions

What Managers Do ?

Managers:

Who achieve goals through other people.

Managerial Activities:

Make decisions.

Allocate recourse. Direct activities other to attain goals.

Management Functions

Management Function

Planning Organizing

Controlling Leading

Where Managers work

Organization: A consciously coordinated

social unit, composed of two or more people, that function on a relatively continuous basis to achieve a common goal or set of goals.

Management Functions Conti…

Organizing

Determines what tasks to be done, who is to do them, how to tasked are grouped, who reports to whom, and when decision are made


Planning

Planning which defines the overall strategy to achieve the organization’s goals


Leading

A function that includes motivating employee directing others, selection the most effective communication channels, and resolving the conflicts.


Controlling

Which ensures the things are going the same way as they should be with minimal disruption

Informational

Mentor

seeks and receives a wide variety of special information (much of it current) to develop a thorough understanding of the organization and environment; emerges as the nerve center of internal and external information for the organization.

Disseminator

Transmits information received from outsiders or from other subordinates to members of the organization. Some information is factual; some involves interpretation and integration of diverse value positions of organizational influences. Disseminating what is of value, and how, is a critical informational role.

Spokesman

transmits information (plans, policies, results, etc.) within and outside of the organization; serves as an expert on the organization's industry.

Mintzberg’s Managerial Role

Interpersonal Figurehead Leader Liaison

Informational Mentor Disseminator Spokesman

Decisional Entrepreneur Disturbance Handler Resource Allocator Negotiator

Interpersonal

Figurehead

Symbolic head; performs a number of routine duties of a legal or social nature.

Leader

Motivates and activates subordinates; performs staffing, training, and associated duties.

Liaison

Maintains a self-developed network of outside contacts and informers who provide favors and information.

Management Skills Conti…

Technical skills Comprise the knowledge and capabilities to

perform specialized tasks related to a specific field.

Human Skills The ability to work with understand, and

motivate other people, both individually and in groups.

Conceptual skills The mental ability to analyze and diagnose

complex situation

Contributing Disciplines to the OB Field Conti…

Sociology: The study of people in relation to their fellow human beings.


Social Psychology:

An area with in psychology that blends concept from psychology and sociology and that focuses on the influence of people on other people.

Management Skills

It is the ability to apply specialized knowledge or expertise as how professional they are with respect to their knowledge

Technical SkillsHuman skills Conceptual Skills

Contributing Disciplines to the OB Field Psychology:

The science that seeks to measure, explain, and something change the behavior of humans and other animals.


Anthropology:

The study of societies to learn about human beings and their activities


Political Science:

The study of the behavior of individuals and groups with in a political enjoinment

Challenges and Opportunities for OB

Improving Quality and Productivity Quality management (QM) Process reengineering

Responding to the Labor Shortage Changing work force demographics Fewer skilled laborers Early retirements and older workers

Improving Customer Service Increased expectation of service quality Customer-responsive cultures

The Dependent Variables Conti…

Productivity

A performance measure that include effectiveness and efficiency.


Turnover

The voluntary and involuntary permanent withdrawal from an organization.

The Dependent Variables

Dependent Variable

A response that is affected by an independent variable


Effectiveness Achievement of Goal


Efficiency

The ratio of effective output to the input required to achieve it.


AbsenteeismThe failure to report to work.


Job Satisfaction

A general attributes towards one’s job the difference between the amount of reward workers receive and the amount thy believe they should receive.

Organizational Behavior & Organization Designs

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