1. Structural Design for Organizations Hong Teri Natasha Kim Namjung
8 team
Hong Teri
Natasha
Kim Namjung
Choe Huije
Jeon Subin

2. INDEX. 1 Define the Three key components of organization structure. 2
Explain the vertical and horizontal information-sharing concepts of structure. 2
Understand the role of task forces and teams
in organization structure. 3
Identify departmental grouping options,
such as functional, divisional, and matirx. 4

3. INDEX.
Understand the strengths and weaknesses of various structural forms. 5
Explain new horizontal and virtual network
Structural forms. 6
Describe the symptoms of structural deficiency
Within an organizaiton. 7

4. Define the Three key components of organization structure.1

5. the Three key components of organization structure.

6. Key Components of Organization Structure
the Three key components of organization structure.
Key Components of Organization Structure
Designates formal reporting relationships
Identifies the grouping together of individuals into departments
Ensure effective inter and intra department communication

7. Information Sharing Concept
the Three key components of organization structure.
Information Sharing Concept
Horizontal
vertical

8. Explain the vertical and horizontal information-sharing concepts of structure.2

9. the vertical and horizontal information-sharing concepts of structure

10. For LEARNING Horizontal Shared task via group empowerment
the vertical and horizontal information-sharing concepts of structure
Horizontal
Shared task via group empowerment
Relaxed hierarchy with minimal rules
Horizontal communication (informal face to face)
Many teams and task forces
Decentralized decision making
For LEARNING

11. the vertical and horizontal information-sharing concepts of structure

12. For EFFICIENCY vertical Specialized tasks Few teams/task forces
the vertical and horizontal information-sharing concepts of structure
vertical
Specialized tasks
Few teams/task forces
Centralized decision making
Vertical communication (formal reporting)
Strict hierarchy
For EFFICIENCY

13. Understand the role of task forces and teams
in organization structure. 3

14. What are Groups and Teams?
the role of task forces and teams in organization structure
What are Groups and Teams?
There is some confusion about the difference
between a group and a team
academics, communication and management theorists
group,
group-working, group-interaction, group-structure
to refer to the dynamics of people working together
towards a common cause. 

15. What are Groups and Teams?
the role of task forces and teams in organization structure
What are Groups and Teams?
When we talk about groups and teams, we use the terms interchangeably
it is possible to have a group without a team
but not a team without a group
we use the following definition of group
A group is a collection of people with some common characteristics or purpose. 

16. What are Groups and Teams?
the role of task forces and teams in organization structure
What are Groups and Teams?
A group can consist of any number of people.
People in groups interact, engage and identify with each other, often at regular or pre-determined times and places.
The group members share beliefs, principles, and standards about areas of common interest and they come together to work on common tasks for agreed purposes and outcomes.
People in groups are defined by themselves and by others as group members, in other words individuals are aware that they
are part of a group.

17. Important Defining Features of Groups
the role of task forces and teams in organization structure
Important Defining Features of Groups
People who can identify with each other.
Sharing ideas, beliefs and / or experience of common areas
People who frequently and regularly engage with
each other, agreeing on a purpose and working
together on shared tasks.
People who recognise themselves and
are recognised by others as part
of a group.

18. the role of task forces and teams in organization structure
Effective Teams

19. Task vs. Process Team Roles
the role of task forces and teams in organization structure
Task vs. Process Team Roles
Task roles focus on ‘what’: the job in hand, and getting it done. The key ‘task-focused’ team roles are Shaper, Implementer, Completer-Finisher, Monitor-Evaluator, Plant and Specialist.
Process roles focus on ‘how’, and particularly on the people involved. They include Coordinator, Resource Investigator, and Team Worker

20. Task vs. Process Team Roles
the role of task forces and teams in organization structure
Task vs. Process Team Roles
Process 
Task 
most effective team-workers
are those who can see what skills are available within the group, and use their own skills to fill any gaps.
People tend to be either task- or process-focused, rather than a mixture. :
It is perfectly possible to learn to take on the other focus, if you want to do so, and this will make you a highly effective team member.

21. Finally
it is important to remember that all team-working situations are fundamentally about working with other people.
If you have good interpersonal skills, and are open to receiving feedback and improving them as a result, then you will become, and be, a good person to work with in a team. It truly is as simple as that.

22. Identify departmental grouping options,
such as functional, divisional, and matirx. 4
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

23. 1 Departments and Divisions Organization Design Alternatives
How organizations coordinate departments and divisions in the organizational hierarchy?
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

24. Departmental grouping affects employees.
grouping options 2
Departmental grouping affects employees.
The reasons
Employees share a common supervisor
Employees share a common resources
Employees are jointly responsible for performance
Employees tend to identify and collaborate with one another
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

25. 2 Structural Design Options for Grouping Employees into Departments
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

26. Functional
Structure 3
Functional grouping places employees according to some similarity
Similar functions
Similar work processes
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.
Similar knowledge
Similar skills

27. 4 Strengths and Weaknesses of Functional Structure Strengths
Allows economies of scale within
functional departments
1. Slow response time to environment
changes
2. Enables in-depth knowledge and
skill development
2. May cause decisions to pile on top;
hierarchy overload
3. Leads to poor horizontal
coordination among departments
3. Enables organization to accomplish
functional goals
4. Involves restricted view of
organizational goals
4. Is best with only one or a few products
5. Results in less innovation
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

28. may improve horizontal coordination by
Functional Structure
with Horizontal Linkages 5
manager
may improve horizontal coordination by
Using IT system
Direct contact between departments
Full-time integrators
Project managers (
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

29. 6 & Divisional Structure
Divisional grouping places employees according to
organization’s product.
Product structure or
strategic business units.
&
The distinctive feature ;
Grouping is
based on
organizational outputs
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

30. 7 Strengths and Weaknesses of Divisional Structure Strengths
1. Suited to fast change in unstable
environment.
1. Eliminates economies of scale in
functional departments
2. Leads to customer satisfaction because
product responsibility and contact points
are clear.
2. Leads to poor coordination across
product lines
3. Involves high coordination across
functions
4. Allows units to adapt to differences in
products, regions, customers
3. Eliminates in-depth competence and
technical specialization
5. Best in large organizations with several
products
4. Makes integration and standardization
across product lines difficult
6. Decentralizes decision making
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

31. 8 Reorganization from Functional Structure to Divisional Structure
at Info-Tech 8
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

32. 9 Matrix the correct structure when the following conditions are met.
Condition 1. Sharing scarce resources
across product lines
Matrix Structure
Condition 2. A dual-authority structure
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.
Condition 3. Information processing in
both vertical and
horizontal direction.
An organization’s structure
needs to be multi-focused

33. ( ) Same authority between the vertical and horizontal lines
Condition 1. Sharing scarce resources
across product lines
Condition 2. A dual-authority structure
Condition 3. Information processing in
both vertical and
horizontal direction.
Matrix Structure
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment. ( )
Same authority between the vertical and horizontal lines
A balanced matrix is hard to implement and maintain
Variations of matrix structure

34. Dual-Authority Structure in
a Matrix Organization
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

35. Strengths and Weaknesses of Matrix Structure Strengths Weaknesses
1. Achieves coordination necessary to meet dual demands from customers
1. Causes participants to experience dual
authority, which can be frustration and
confusing
2. Flexible sharing of human resources
across products
2. Means participants need good interpersonal
skills and extensive training
3. Suited to complex decisions and frequent
changes in unstable environment
3. Is time consuming; involves frequent
meetings and conflict resolution sessions
4. Provides opportunity for both functional
and product skill development
4. Will not work unless participants
understand it and adopt collegial rather
than vertical type relationships
5. Best in medium-sized organizations with multiple products
5. Requires great effort to maintain power
balance
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

36. Matrix Structure for Englander Steel
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

37. Understand the strengths and weaknesses of various structural forms.5
Explain new horizontal and virtual network
Structural forms. 6

38. Reengineering Horizontal Structure Weaknesses
Horizontal and virtual network
Reengineering
Horizontal
Structure
Characteristics
Strengths
Weaknesses

39. “ ” = flat organization, delayering what is horizontal structure?
Few or no levels of middle management
between staff and executive “ ” =
flat organization, delayering

40. structure to horizontal structure
Reengineering 1
business process reengineering(BPR) :
redesign of vertical
structure to horizontal structure

41. 2 characteristics Boundaries between departments are deleted
Process owners have responsibility for each core process entirely
Employees are cross-trained
Financial contribution to company

42. 3 Strengths and Weaknesses strengths Weaknesses
Promotes flexibility to changes in customer need fast
Can give better service to customer
Each employee has broader view of organization goals.
Promote teamwork
Gives employees some free wills to make decisions
Core process determination is time consuming
Require some changes when reengineering, and it's hard to make traditional managers to give up their authority
Require training of employess to adjust in horizontal team
Limited in-depth skill development

43. Outsourcing strengths weaknesses Virtual Networks and Outsourcing

44. what is outsourcing? Contracting out of certain tasks to other firms
Involves tranfering employees and assets between firms
Reduce cost on peripheral business
Can concentrate resources to core business

45. Virtual networks Outsource most of its major functions
Connected in to headquaters that combine all tasks
No physical connection
Almost every tasks also separate in to companies or individuals

46. Virtual networks strengths Weaknesses
Can't control over many activities and employees
Require a great deal of time to take care of relationships
Risk of organizational failure
Low employee loyalty and weak corporate culture
Enables small firms to obtain resources.
Enables company to easily reach to producing without huge investment
Very flexible and responsive to changing of customer's needs
Reduce administrative costs
Can't control over many activities and employees
Require a great deal of time to take care of relationships
Risk of organizational failure
Low employee loyalty and weak corporate culture

47. Describe the symptoms of structural deficiency Within an organization.7
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.

48. Symptoms of Structural Deficiency
manager
Top executives periodically evaluate organization structure to determine whether it is appropriate to changing needs.
Manager try to achieve the best fir between internal reporting relationships and the needs of the external environment.
Internal reporting relationships
the needs of the external environmemt

49. When organization structure is out of alignment with organization
Symptoms of Structural Deficiency
When organization structure is
out of alignment with organization
As a general rule, when organization structure is out of alignment with organization needs, one or more of the following symptoms of structural deficiency appear.
Symptoms of
Structural Deficiency

50. Symptoms of Structural Deficiency
Decision making is delayed or lacking in quality.
Symptoms of
Structural Deficiency
Employee performance
declines and goals are no being met.
The organization
does not respond innovatively
to a changing environment .
Too much conflict
is evident

51. 1 Decision making is delayed or lacking in quality.
The hierarchy funnels too many problems and decisions to them.
Decision Makers
Information may not
reach the correct people.

52. 2 Departments are not coordinated horizontally. The organization
does not respond innovatively
to a changing environment 2
Departments are not coordinated horizontally.
Identification of
customer needs by the marketing department
technological developments
in the research department

53. Complexity of the market environment3
Employee performance
declines and goals
are not being met.
Clear goals,
responsibilities,
mechanisms
for coordination
Complexity of the market environment
yet be straightforward enough for employees to effectively work within.

54. 4 ( ) Too much conflict is evident
Cross-purposes or under pressure
at the expenses of organizational goals )
Organization structure should allow conflicting departmental goals to combine into a single set of goals for the entire organization.

55. Symptoms of Structural Deficiency
Design
Esssentials

56. 1 Organization structure must
accomplish two things for the organization 1
Organization
structure
Mechanisms for linking and coordinating organizational elements into a coherent whole
A framework of responsibilities, reporting relationships, and groupings
Organization structure must accomplish two things for the organization.

57. 1 + + Use Coherent whole Organization Organization structure must
accomplish two things for the organization 1
Coherent whole
Organization
Organization structure must accomplish two things for the organization.
The structure is reflected on the organization chart.
Use
Information
systems
Organization
chart +
Linkage
devices +

58. 2 ( ) Traditional organization Contemporary organization
Organization structure can be
Designed to provide vertical and
Horizontal information linkages 2
Traditional organization
designed for efficiency, which emphasizes vertical linkages
manager
Hierarchy, rules and plans, and formal information systems ( )
Organization structure must accomplish two things for the organization.
The structure is reflected on the organization chart.
Linkages are Based on the information processing required to meet the organization’s overall goal.
designed for learning and adaptation, which emphasizes horizontal communication and coordination
Contemporary
organization

59. 2 Organization Organization structure can be
Designed to provide vertical and
Horizontal information linkages 2
Organization
Cross-functional
information systems
Liaison roles
Temporary task forces
Full-time integrators
Organization structure must accomplish two things for the organization.
The structure is reflected on the organization chart.
Linkages are Based on the information processing required to meet the organization’s overall goal.
Teams
By creating the conditions to enable relational coordination
Horizontal linkages

60. With a horizontal structure, activities are organized horizontally around core work processes3
Functional grouping
Divisional grouping
Horizontal grouping
Multi-focused grouping
Virtual network grouping
Alternatives for grouping employees an departments into overall structural design

61. Where coordination and integration will be greatest.
With a horizontal structure, activities are organized horizontally around core work processes 3
Functional grouping
Divisional grouping
Horizontal grouping
Multi-focused grouping
Virtual network grouping
Where coordination and integration will be greatest.

62. With a horizontal structure, activities are organized horizontally around core work processes3
Functional grouping
Divisional grouping
Horizontal grouping
Multi-focused grouping
Virtual network grouping
Managers use horizontal linkage mechanisms to complement the vertical dimension and achieve integration of departments and levels into an organizational whole.

63. A virtual network structure extends the concept of horizontal coordination and collaboration4
Virtual network structure extends the concept of horizontal coordination and collaboration beyound the boundaries of the organization.
Other functions and activities are outsourced to contract partners.
Core activities are performed by a central

64. The matrix structure attempts to achieve an equal balance between the vertical and horizontal dimensions of structure 5
Vertical dimensions of structure
horizontal dimensions of structure
Most organizations do not exist in these pure forms, using instead hybrid structures that incorporate characteristics of two of more types of structure

65. 6 Vertical control Horizontal coordination
Managers attempt to find the correct balance between vertical control and horizontal coordination 6
manager
Vertical control
Horizontal coordination
Signs of structural misalignment
① delayed decision making ②lack of innovation
③poor employee performance ④excessive conflict

66. 7 Organization chart An organization chart is
only so many lines and boxes
on a piece of paper. 7
The purpose of the organization chart
Encourage and direct employees into activities and communications that enable the organization to achieve its goals.
The chart is a guideline to encourage people to work together, but management must implement the structure and carry it out
Employees provide the behavior
structure
Organization chart

67. THANKS