Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-1 Copyright © 2007 Pearson Education Canada Chapter 13 Organizational Structure

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-2 Copyright © 2007 Pearson Education Canada What Is Organizational Structure? Organizational structure defines how job tasks are formally divided, grouped, and coordinated. It includes the degree of complexity, formalization, and centralization in the organization.

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-3 Copyright © 2007 Pearson Education Canada Exhibit 13-1 Pyramidal Organizational Structure

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-4 Copyright © 2007 Pearson Education Canada Exhibit 13-2 Flat Organizational Structure

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-5 Copyright © 2007 Pearson Education Canada 1. To what degree are tasks subdivided into separate jobs? 2. On what basis will jobs be grouped together? 3. To whom do individuals and groups report? 4. How many individuals can a manager efficiently and effectively handle? 5. Where does decision-making authority lie? 6. To what degree will there be rules and regu- lations to direct employees and managers? Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization The Answer The Key Question Is Provided By 6 Key Questions for Organizational Structure

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-6 Copyright © 2007 Pearson Education Canada Work Specialization The degree to which tasks in the organization are subdivided into separate jobs. –Also known as division of labour. Benefits: –Efficiency Less time changing tasks, putting equipment away Easier to train employees Downsides: –Boredom, stress, low productivity, high turnover, increased absenteeism

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-7 Copyright © 2007 Pearson Education Canada Departmentalization The basis on which jobs are grouped together. Types: –Functional –Product –Geographic –Process –Customer –Organizational Variety

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-8 Copyright © 2007 Pearson Education Canada Exhibit 13-4 Departmentalization by Function

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 13-9 Copyright © 2007 Pearson Education Canada Exhibit 13-5 Departmentalization by Product Optical Networks Enterprise Networks Wireline Networks Nortel Networks Wireless Networks

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Exhibit 13-6 Departmentalization by Geography Royal Bank of Canada CanadaAsiaEuropeUnited States

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Exhibit 13-7 Departmentalization by Customer Small Business Users Medium/Large Business Users Government, Education, Health Care Dell Canada Individual Systems Business Systems

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Chain of Command Two aspects –Authority Who has the right to give orders and expect them to be obeyed. –Unity of command Subordinates should have only one superior. Delegation –Assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions.

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Span of Control Number of subordinates that can be efficiently and effectively managed. Small span –Expensive, more managers. –Makes vertical communication more complicated. –Encourages tight supervision and discourages autonomy. Larger span –Empowers workers. –Speeds up decisions.

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Exhibit 13-8 Contrasting Spans of Control (Highest) Assuming span of 4 Operatives Managers (Levels 1–6) = 1365 = 4096Operatives Managers (Levels 1–4) = 585 = Assuming span of Members at each level Organizational Level

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Centralization and Decentralization Are decisions concentrated at top (centralization) or pushed to lower levels (decentralization)?

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Formalization How standardized are the jobs? –High formalization means employees have little discretion. –Low formalization means employees have more freedom.

Chapter 13, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition Copyright © 2007 Pearson Education Canada Mechanistic vs. Organic Models