Organization = a cooperative social system requiring the coordinated efforts of people pursuing a shared purpose

Why Organization: Purposes they Serve Goods and Services Means of Subsistence & Development Means of Representing Interests Means of Reducing Risk & Uncertainty

Characterizing an Organization Interlocked Behavior Division of Labor Hierarchy (of Authority),,, Transactional Structure Individual Abilities & Skills Desired Ends

The Organization: The Classical View Individual Abilities & Skills Desired Ends Decisions tend to be Rule Based—Calculated & Preprogrammed

Classical Weberian Bureaucracy A Transactional Structure for Managing the Enterprise President/CEO VP Dir. Divided Labor / Hierarchy of Authority / Impersonality / Rational Rule Based

Alternative Basis for Hierarchical Structures Product Line Geography Customer ) ) )

Is this appropriate/workable? Where (what circumstance) Why?

Coordination = to join together to accomplish great and exciting things The central question is –How could/should management organize the enterprise? How can the design of the organization: Enable togetherness? Help accomplish great things? Organization = a cooperative social system requiring the coordinated efforts of people pursuing a shared purpose

DELEGATION A Matter of Degree Low degree of delegation: the responsibility to do Investigate and report (the findings) back Investigate and recommend action Investigate and advise on action to take Investigate, first seek advice on action, then take action accordingly Investigate and take action High degree of delegation: the responsibility to do and the authority to act

DELEGATION (continued) For Discussion: 1.Does a high degree of delegation make an organization more mechanistic or more organic? Explain. 2.What is the relationship between delegation and the issue of centralization?

SPAN OF CONTROL: the number of people who report directly to a manager What are the advantages & disadvantages of a wide span of control? Organizational design can range from being quite vertical to being relatively horizontal (tall vs flat) How wide should one’s span of control be? What does it depend on? (wider spans of control mean less administrative expense and more self-management, both popular notions today)

SPAN OF CONTROL How do the following Situational Determinants affect to Span of Control? 1.Similarity of work performed by subordinates 2.Dispersion of subordinates 3.Complexity of work performed by subordinates 4.Direction and control required by subordinates 5.Time spent coordinating with other managers 6.Time required for planning

CENTRALIZATION AND DECENTRALIZATION Two Ends of the Same Continuum Centralization: the retention of decision-making authority by top management. Decentralization: management shares decision- making authority with lower-level employees.

CENTRALIZATION AND DECENTRALIZATION Balance Needed within a Contingency Approach What’s good, what’s bad about Centralization? Why would a more organic, decentralized approach be more appropriate for firms in complex and changing conditions?

Structural/Organizing Trends: What effect on organizational design or management would you expect from each? Less Vertical Less Unity of Command Wider Span of Control Delegation & Empowerment Decentralization (w/ centralization)

What’s the good and the bad about this?

Hierarchy is Form Democracy & are Function Oligarchy

THE LAWRENCE AND LORSCH MODEL Opposing Organizational Forces Differentiation: tendency among specialists to think and act in restricted ways. (Tends to fragment the organization.) Integration: in direct opposition to differentiation, it involves the collaboration among specialists needed to achieve a common purpose. (Tends to coordinate the organization.)

THE LAWRENCE AND LORSCH MODEL (continued) Key Research Findings: 1.Every organization requires an appropriate dynamic equilibrium between differentiation and integration. 2.In successful firms, both differentiation and integration increased as environmental complexity increased. Why?

THE LAWRENCE AND LORSCH MODEL (continued) Practical Questions: How do the issues of Differentiation and Integration play out for organizational success? Can Integration and Differentiation be simultaneously achieved? How? Characterize the ideal organization for today’s complex and dynamic business environment?

Organizational Culture Order Producing Invisible Pattern Collective Map of “the way it ought to be” Symbolic-Linguistic in its communication Stock of Shared Knowledge informs Behavior/Action,,,,

Yahoo’s Gang of Six Why was Yahoo successful? How did its management structure and corporate culture contribute to this success? How and why should management structure change as the company grows? Use examples from the article to illustrate. What steps is Yahoo taking to turn itself around? Do you agree? Will they be successful & why?

SubjectiveObjective Individual Collective I’s IT’s WE’s IT’s How does this relate to the Management Theories?

Organizational Effectiveness Culture & Structure } Order Order Reality Sustainability

Why does each lead to destruction (organizational decline)?

Lennar’s Oddball Culture Describe the corporate culture at Lennar. –What makes it unique? –How does culture align with strategy? What role does the culture play in –Its management approach What management concepts are illustrated –Its level of success How would you feel about working at a place like Lennar? Do you think most would feel the same?