Organizational Behaviour The Organization ORGANIZATIONAL STRUCTURE

WHAT IS ORGANIZATIONAL STRUCTURE? The manner in which an organization divides its labour into specific tasks and achieves coordination among these tasks.

HORIZONTAL DIVISION OF LABOUR groups the basic tasks to be performed into jobs and then into departments so organizational goals can be achieved.

DEPARTMENTATION – grouping of jobs. –Functional Departmentation –Product Departmentation –Matrix Departmentation Structural Designs for Organizations

FUNCTIONAL DEPARTMENTATION

MATRIX DEPARTMENTATION

–Other Forms of Departmentation Geographic Departmentation Customer Departmentation Hybrid Departmentation

COORDINATION BETWEEN DEPARTMENTS DIFFERENTIATION – Differences in goals, time spans and interpersonal styles between departments INTEGRATION – The process of attaining coordination across differentiated departments. –PAPER WORK – Memos –MEETINGS –LIAISON ROLE – A person is assigned to help achieve coordination between his or her department and another department. –TASK FORCES AND TEAMS – Groups set up to solve coordination problems across several departments. –INTEGRATORS – Organizational members permanently assigned to facilitate coordination between departments.

Structural Characteristics of Organizations –Specialization –Standardization –Formalization –Centralization –Span of control –Hierarchy –Complexity

MECHANISTIC VERSUS ORGANIC STRUCTURES ORGANIZATIONA L CHARACTERISTIC S MECHANISTICORGANIC Span of control WideNarrow Number of levels of authority (hierarchy) ManyFew Degree of centralization CentralizedDecentralized Formalization HighLow Standardization HighLow Specialization NarrowWide

NETWORK ORGANIZATION Liaisons between specialist organizations that rely strongly on market mechanisms for coordination. Emphasis is on who can do what most effectively and economically.

THE MODULAR ORGANIZATION An organization that performs a few core functions and outsources non-core activities to specialists and suppliers. It is like a hub that is surrounded by networks of suppliers that can be added or removed as needed. It maintains complete strategic control.

THE IMPACT OF SIZE ON AN ORGANIZATION Complexity Increases a. HorizontalIncreased Need b. Verticalfor Coordination c. Geographicand Control As SizeCentralization IncreasesDecreasesProvision of Coordination Formalizationand Control Increases