Managing Organizational Structure and Culture Chapter 10 Managing Organizational Structure and Culture

Organizational Structure Organizational Architecture The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used MGMT 321 – Chapter 10

Organizational Structure Organizing Establishing working relationships among employees to achieve goals. Organizational Structure Formal system of task and reporting relationships showing how workers use resources. Organizational Design Creating a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way MGMT 321 – Chapter 10

Factors Affecting Organizational Structure MGMT 321 – Chapter 10

The Organizational Environment Organization structure depends on: How to group tasks into individual jobs How to group jobs into functions and divisions How to allocate authority and coordinate functions and divisions MGMT 321 – Chapter 10

Job Design Job Design Job Enlargement Job Enrichment Deciding how to divide tasks into specific jobs Job Enlargement Increasing the number of different tasks in a given job by changing the division of labor Job Enrichment Increasing the degree of a worker’s responsibility MGMT 321 – Chapter 10

The Job Characteristics Model MGMT 321 – Chapter 10

Job Characteristics Model MGMT 321 – Chapter 10

Grouping Jobs into Functions Group of people who possess similar skills to perform their jobs Functional Structure An organizational structure composed of all the departments that an organization requires to produce its goods or services MGMT 321 – Chapter 10

Divisional Structures Managers create a series of business units to produce a specific kind of product for a specific kind of customer Types of Divisional Structures Product Market Geographic MGMT 321 – Chapter 10

Types of Divisional Structures MGMT 321 – Chapter 10

Matrix Structure MGMT 321 – Chapter 10

Product Team Structure MGMT 321 – Chapter 10

Federated’s Hybrid Structure MGMT 321 – Chapter 10

Allocating Authority Hierarchy of Authority Line Manager Staff Manager An organization’s chain of command Span of control Line Manager Staff Manager MGMT 321 – Chapter 10

Tall Organizations MGMT 321 – Chapter 10

Flat Organizations MGMT 321 – Chapter 10

Decentralization of Authority Decentralizing authority Disadvantages Teams may begin to pursue their own goals at the expense of organizational goals Can result in a lack of communication among divisions MGMT 321 – Chapter 10

Integrating Mechanisms MGMT 321 – Chapter 10

Organizational Culture MGMT 321 – Chapter 10

Adaptive and Inert Cultures Adaptive cultures Values and norms help an organization grow and change as needed to be effective Inert cultures Values and norms that fail to motivate or inspire employees Lead to stagnation and often failure over time MGMT 321 – Chapter 10