Organizational Structure, Design & Culture

Organizational Structure  How job tasks are formally divided, grouped, & coordinated  Why? –Meet goals & objectives of organization –Efficiency & effectiveness

Organizational Structure  6 elements to address for a proper organizational structure 1.Work specialization 2.Departmentalization 3.Chain of command 4.Span of Control 5.Centralization or decentralization 6.Formalization

Organizational Structure  1. Work specialization –Division of labor  Tasks are subdivided into separate jobs –Jobs broken into steps with multiple people doing their individual part to make the entire product –Assembly lines, McDonald’s

Organizational Structure  1. Work specialization –Advantages  Used to increase productivity  Allows skill building on the job –Disadvantages  Good to a point & then diminishing returns  Boredom, absenteeism, stress, high turnover

Organizational Structure  2. Departmentalization –Grouping of jobs according to (4):  Function/process  Product  Geography  Customer

Organizational Structure  2. Departmentalization –Grouping of jobs according to (4):  Function/process –Northwest SRA Managers:  Inclusion, cultural arts, special events –Pocono Family YMCA

Organizational Structure  2. Departmentalization –Grouping of jobs according to (4):  Product –Nike: Golf, shoes, clothing –REI: Clothing & footwear, snow gear, water gear, land gear  Geography –NRPA regions; NPS –Gametime – 18 independent U.S. Reps –NWSRA – 2 area (by city) inclusion coordinators

Organizational Structure  2. Departmentalization –Grouping of jobs according to (4):  Customer –retail, wholesale, government –corporate vs. individual clients –NRPA (Aquatics, L & A, CBM, NTRS)

Organizational Structure  3. Chain of command –Unbroken line of authority  the right to exercise influence, give directives or make certain decisions within the organization

Organizational Structure  3. Chain of command –Key issues  Unity of Command –1 supervisor ee is responsible to  Seeing less chain of command with empowerment –More access to company wide info via technology –Don’t need to have your boss talk to the boss of maintenance to get the grass mowed!

Organizational Structure  4. Span of Control –# of people, units, & operations a mgr can control effectively & efficiently –Small span of control – supervise smaller number of people –Larger span of control – supervise larger number of people

Organizational Structure  4. Span of Control –# of people, units, & operations a mgr can control effectively & efficiently –Small span of control – supervise smaller number of people –Larger span of control – supervise larger number of people

Organizational Structure  4. Span of Control –See smaller span of control at top & larger at bottom of org. –7 is optimal but depends on work done –Which is better? Smaller or larger?

Organizational Structure  4. Span of Control –Wider – fewer managers, more ee’s reporting to them  Reduces cost, speeds decision making  Get closer to the customer  Empower employees  Fewer layers of employees  Invest in training staff –Easier to supervise a lot of good staff than bad ones

Organizational Structure  4. Span of Control –Smaller – more managers with fewer ee’s  Tight managerial control  Increase cost of managers  Added managers slows communication  Encourages micro-managing & discourages ee autonomy

Organizational Structure  5. Centralization or decentralization –Degree to which decision making is concentrated at a single point in the organization

Organizational Structure  Centralization –Top managers make all the decisions –Consistency in decision making –Slow process…move up the chain of command

Organizational Structure  Decentralization –Decision making is pushed down to mgrs closest to the action –Quicker actions taken –More people provide input –EE’s less likely to feel alienated from decision makers –Mgrs closer to situation

Organizational Structure  5. Centralization or decentralization –???? –Which one is better? –Is there a place for both?

Organizational Structure  6. Formalization –Degree to which jobs are standardized –EE has minimal discretion in how, what & when to do things –Policies are strictly followed –Explicit job descriptions –Less formalization increases freedom

Organizational Design Simple Structure Bureaucracy Team Based Structure Matrix Structure

Organizational Design  How organizational structures are arranged and incorporated  Designs change as people come & go in the organization

Organizational Design  Simple structure –Low degree of departmentalization, wide span of control, centralized authority, little formalization –“Flat” organization

Organizational Design  Simple structure –Fast, flexible, inexpensive, clear accountability –Info overload at the top –Difficult to use in a large organization

Organizational Design  Bureacracy –Highly standardized operating tasks achieved through specialization –Formalized rules –Tasks grouped by function –Centralized authority –Narrow span of control –Decision making follows the chain of command

Organizational Design  Bureacracy –Strength – ability to perform standardized activities efficiently –Functions well with less talented & less costly ee’s –Resistant to change –Close adherence to rules, minimizes decision making –Put like minds together

Bureaucracy

Organizational Design  Team Based Structures –Breaks down dept barriers –Org is more horizontal –Decentralizes decision making to team level –Requires ee’s be generalists vs. specialists –Naperville Park District

Organizational Design  Team Based Structures –Self managed teams  Work together to accomplish goals & obj.  Marketing team  Treatment team –Problem solving teams  Short term to solve problems

Groups vs. Teams

Organizational Design  Matrix Structure (cross functional teams) –Combines functional & product departmentalization –Assigns specialists to specific functional departments to work with interdisciplinary groups led by project leaders –Breaks unity of command concept  2 bosses – functional dept manager & product managers

Home Departments: Marketing Accounting Registration Human resources Arts Events Sports Recreation Maintenance

Reading Org Charts  Lines show chain of command  Levels should be similar  Determine distinction between titles: –Manager, supervisor, coordinator, specialist, leader