Robbins Organizationbehaviour13 Chapter16 121205015858 Phpapp02

Chapter Learning ObjectivesAfter studying this chapter, you should be able to:Identify the six elements of an organizations structure.Identify the characteristics of a bureaucracy.Describe a matrix organization.Identify the characteristics of a virtual organization.Show why managers want to create boundaryless organizations.Demonstrate how organizational structures differ, and contrast mechanistic and organic structural models.Analyze the behavioral implications of different organizational designs.Show how globalization affects organizational structure. 2009 Prentice-Hall Inc. All rights reserved.16-*

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What Is Organizational Structure?Organizational StructureHow job tasks are formally divided, grouped, and coordinatedKey Elements:Work specializationDepartmentalizationChain of commandSpan of controlCentralization and decentralizationFormalization 2009 Prentice-Hall Inc. All rights reserved.16-*


1. Work SpecializationThe degree to which tasks in the organization are subdivided into separate jobsDivision of LaborMakes efficient use of employee skillsIncreases employee skills through repetitionLess between-job downtime increases productivitySpecialized training is more efficientAllows use of specialized equipmentCan create greater economies and efficiencies but not always 2009 Prentice-Hall Inc. All rights reserved.16-*E X H I B I T 16-1


Work Specialization Economies and DiseconomiesSpecialization can reach a point of diminishing returnsThen job enlargement gives greater efficiencies than does specialization 2009 Prentice-Hall Inc. All rights reserved.16-*E X H I B I T 16-2


3. Chain of CommandAuthorityThe rights inherent in a managerial position to give orders and to expect the orders to be obeyedChain of CommandThe unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whomUnity of CommandA subordinate should have only one superior to whom he or she is directly responsible

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4. Span of ControlThe number of subordinates a manager can efficiently and effectively directWider spans of management increase organizational efficiencyNarrow span drawbacks:Expense of additional layers of managementIncreased complexity of vertical communicationEncouragement of overly tight supervision and discouragement of employee autonomy



5. Centralization and DecentralizationCentralizationThe degree to which decision making is concentrated at a single point in the organization.DecentralizationThe degree to which decision making is spread throughout the organization. 2009 Prentice-Hall Inc. All rights reserved.16-*


6. FormalizationThe degree to which jobs within the organization are standardized.High formalizationMinimum worker discretion in how to get the job doneMany rules and procedures to followLow formalizationJob behaviors are nonprogrammedEmployees have maximum discretion 2009 Prentice-Hall Inc. All rights reserved.16-*


Common Organization Designs: Simple StructureSimple StructureA structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization 2009 Prentice-Hall Inc. All rights reserved.16-*E X H I B I T 16-4


Common Organizational Designs: BureaucracyBureaucracyA structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command 2009 Prentice-Hall Inc. All rights reserved.16-*


An Assessment of BureaucraciesStrengthsFunctional economies of scaleMinimum duplication of personnel and equipmentEnhanced communicationCentralized decision making

WeaknessesSubunit conflicts with organizational goalsObsessive concern with rules and regulationsLack of employee discretion to deal with problems



Common Organizational Designs: MatrixMatrix StructureA structure that creates dual lines of authority and combines functional and product departmentalizationKey ElementsGains the advantages of functional and product departmentalization while avoiding their weaknessesFacilitates coordination of complex and interdependent activitiesBreaks down unity-of-command concept

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New Design Options: Virtual OrganizationA small, core organization that outsources its major business functionsHighly centralized with little or no departmentalizationProvides maximum flexibility while concentrating on what the organization does bestReduced control over key parts of the business

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New Design Options: Boundaryless OrganizationAn organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teamsT-form ConceptsEliminate vertical (hierarchical) and horizontal (departmental) internal boundariesBreakdown external barriers to customers and suppliers



Four Reasons Structures DifferStrategyInnovation StrategyA strategy that emphasizes the introduction of major new products and servicesOrganic structure bestCost-minimization StrategyA strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cuttingMechanistic model bestImitation StrategyA strategy that seeks to move into new products or new markets only after their viability has already been provenMixture of the two types of structure 2009 Prentice-Hall Inc. All rights reserved.16-*E X H I B I T 16-8


Why Structures DifferOrganizational SizeAs organizations grow, they become more mechanistic, more specialized, with more rules and regulationsTechnologyHow an organization transfers its inputs into outputsThe more routine the activities, the more mechanistic the structure with greater formalizationCustom activities need an organic structureEnvironmentInstitutions or forces outside the organization that potentially affect the organizations performanceThree key dimensions: capacity, volatility, and complexity 2009 Prentice-Hall Inc. All rights reserved.16-*


Three-Dimensional Environment ModelCapacityThe degree to which an environment can support growthVolatilityThe degree of instability in the environmentComplexityThe degree of heterogeneity and concentration among environmental elements

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Organizational Designs and Employee BehaviorImpossible to generalize due to individual differences in the employeesResearch findingsWork 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.People seek and stay at organizations that match their needs.



Global ImplicationsCulture and Organizational StructureMany countries follow the U.S. modelU.S. management may be too individualisticCulture and Employee Structure PreferencesCultures with high-power distance may prefer mechanistic structuresCulture and the Boundaryless OrganizationMay be a solution to regional differences in global firmsBreaks down cultural barriers, especially in strategic alliancesTelecommuting also blurs organizational boundaries16-* 2009 Prentice-Hall Inc. All rights reserved.


Summary and Managerial ImplicationsStructure impacts both the attitudes and behaviors of the people within it

Impact of TechnologyMakes it easier to change structure to fit employee and organizational needs

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Robbins Organizationbehaviour13 Chapter16 121205015858 Phpapp02