ORGANIZATION STRUCTURE Chapter 10 ORGANIZATION STRUCTURE

Organization structure Organization structure - the formal arrangement of task, communication and authority relationships that influence and control how people coordinate and conduct their work

The duality of structure Figure 10.1

Organizational environments Figure 10.2

Classic form of management Table 10.1

Organization design Organization design - the process by which managers select and manage aspects of an organization’s structure and culture so that the organization can control the activities necessary to achieve organizational goals

The challenges of organization design Three categories: Appropriate horizontal and vertical division of labour through differentiating the tasks that various individuals and groups need to perform Structurally integrating the actors and their activities and implementing mechanisms to enable constructive coordination and control Determining the degree of centralization or decentralization of decision making

Organization design Guidance has traditionally taken one of three forms: Universalistic theories - scientific management and other classical management approaches Contingency theories of organization - consider the impact of environmental, situational, or organizational factors Configurational theories - more complex than contingency theories because they incorporate complex arrangements and equifinality

Organizational height Figure 10.3

Elements and principles of organizational structure and structuring Horizontal differentiation Vertical differentiation Centralization and treatment of non-routine decisions Communication, co-ordination and integration Formalization and standardization Job design

Functional organization structure Figure 10.4

Divisional organization structure Figure 10.5

Process-oriented structure Figure 10.6

Matrix structure Figure 10.7

Project structure Figure 10.8

Contingency model of organization design Figure 10.9

Multiple perspectives of an object Figure 10.10

Weber and bureaucracy Charismatic - authority is based around the personal qualities of the leader Traditional - relies on accepted precedent as the dominant form of authority Rational-legal - bureaucratic form of organization is termed rational because of the (rational) objectives and legal because of its rule- and procedure-based approach to authority Table 10.3

Gouldner and bureaucracy : Gouldner (1954) suggested three types of bureaucracy: Mock - The rules and procedures are largely ignored by all inside having been imposed on them by an outside agency Punishment - a variant on the mock bureaucracy in that the rules are imposed on the workers by management Representative - the rules and procedures are generally supported by those inside the organization having been developed by managers with the involvement of worker and stakeholder groups

Mechanistic and organic organizations Table 10.4

Reinforcing cycle for mechanistic and organic configurations Figure 10.11

Metaphors of organizations Table 10.5

Mintzberg’s organizational parts Figure 10.12

Mintzberg’s coordinating mechanisms used in organizations Table 10.6

Mintzberg’s coordinating mechanisms Figure 10.13

Mintzbergs common organizational forms Figure 10.14

Mintzberg’s organizational parts Strategic apex - reflects the top echelon of the hierarchy Middle line - intermediate levels of management Operating core - those involved in operations Technostructure - specialist functions Support staff - functions such as HR, maintenance, or facilities management Ideology - the force for cooperation between the above parts

Mintzberg’s common forms Entrepreneurial form (simple form) - central role for the strategic apex which directly controls activities in the operating core with little in terms of middle line, technostructure or support functions Machine form - the force for efficiency dominates with a large middle line as well as sizeable support staff and technostructure that create extensive standardization and formalization through rules and regulations Professional form - the force for proficiency leads and is often found in professional service organizations Adhocracy form - the force for creating novelty and innovation in in research organizations, political think tanks, advertising agencies and boutique consulting firms Heterarchy - meaning that different people and subunits are not ordered according to predetermined differences in formal authority (hierarchy) but rather all have the potential to be deployed as is seen fit and in accordance to the requirements of the particular tasks Diversified form - the force for concentration creates structure wich first diversifies across different domains (such as markets or products) and then divisionalizes by concentrating activities within the unit dealing with a particular domain

The Ambidextrous Organization The challenge of successfully dealing with simultaneous different forces or needs such as for stability and change, efficiency and innovation, and control and responsiveness has long been a central concern of organization designers and theorists

The Ambidextrous Organization Ambidextrous organizations are able to combine alignment and adaptability Traditional structural solutions were based on structural ambidexterity but now also tend to incorporate contextual ambidexterity and leadership dimensions

Comparing structural and contextual ambidexterity Table 10.7

Organizational lifecycle Quinn and Cameron (1983) Entrepreneurial phase Collectivity phase Formalization phase Elaboration phase Katz and Kahn, and Cameron et al Organizational decline Whetten (1980) identified four response options to decline Generating Reacting Defending Preventing

The growing pains of an organization Figure 10.15