Learning Objectives  Describe the forces reshaping organizations  Discuss emerging organizational structures  Identify two cautions about the effect of organizational structures on people.

Organizational Design the process of constructing and adjusting an organization’s structure to achieve its goals. Organizational Structure The linking of departments and jobs within an organization.

Context of the Organization Structural Dimensions Differentiation & Integration Purposes Context of the Organization Influences how managers perceive structural needs Which characterize the organizational processes Which influence how well the structure meets its Which influence how well the structure fits the

Context of the Organization  Current size  Current technology  Perceived environment  Current strategy and goals

Structural Dimensions  Level of formalization  Level of Centralization  Level of specialization  Level of Standardization  Level of complexity  Hierarchy of authority

Differentiation The process of deciding how to divide the work in an organization Integration The process of coordinating the different parts of an organization

Two Cautionary Notes A.) Organizational structure may be weak or deficient. 1. Decision making is delayed because the hierarchy is overloaded and too much information is being funneled through one or two channels. 2. Decision making lacks quality because information linkages are not providing the correct information to the right person in the right format.

Two Cautionary Notes 3. The organization does not respond innovatively to a changing environment, especially when coordinated effort is lacking across departments. 4. A great deal of conflict is evident when departments are working against one another rather than working for the strategies and goals of the organization as a whole.

Two Cautionary Notes B.) Personality of the Chief executive may adversely affect the structure of the organization. Five dysfunctional combinations personality and organization have been identified: 1. Paranoid 2. Depressive 3. Dramatic 4. Compulsive 5. schizoid

Managerial Implications: Fitting people and structures together  Managers who design, develop, and improve organizations must have a mastery of the basic concepts related to the anatomy and process of organizational functioning.  It is essential for executives at the top to have a clear concept of how the organization can be differentiated and then integrated into a cohesive whole.

By: Susan Balindo Jason Cahatol