1. Unit Lesson MBA 6001: Unit VI
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2. organizational design models and organizational structures
Unit VI:
organizational design models and organizational structures
Please be sure to turn up your volume or plug in your headphones. The next several slides contain important audio.
(OpenClipartVectors, 2013)

3. Organizational Design
Traditional Designs
Simple structures
Functional structures
Divisional structures
Contemporary Designs
Team structures
Project structures
Learning organizations
Matrix
Boundaryless organizations
Organizational design deals with aligning structures and resources to accomplish the vision and mission of the organization. It includes evaluating differentiation, strategy, growth, and efficiency. It also includes people, workflow process, and technological impacts. The types of designs consist of traditional designs and contemporary designs.
Traditional designs include simple structures with few employees and wide spans of control, functional structures with departmentalization, and divisional structures that are organized and managed as divisions. Contemporary designs include team structures, project structures, learning organizations, matrix, and boundaryless organizations.
Organizations redesign regularly to improve profitability, improve customer service, improve productivity and sales, cut cost, and improve efficiency. Organizations also reorganize to change behaviors in leaders and employees, improve environments, and to increase employee satisfaction and retention.
(Altmann, 2015b)

4. Organizational Structures
Emphasize employee behaviors
Determine how the work gets done
Define authority
Impact performance, motivation, and corporate culture
Vertical lines of authority
Centralized Structures
Authority at lower levels of the organization
Decentralized Structures
Tall layers of managers
Tall Structures
Few layers of management
Flat Structures
Organizational structures emphasize employee behaviors and reporting structures to determine how the works gets done. The structure defines authority and how it impacts performance, motivation, and corporate culture. In Unit I, we discussed how centralized structures determine vertical lines of authority, and decentralized structures consist of authority at lower levels of the organizations. Tall structures have tall layers of managers versus flat, a few layers of management.

5. Organizational Structures
Bureaucratic designs
Formalized control
Narrow spans of control
Centralized authority
Standardized processes
Boundaryless designs
Participative decision making
Cross-functional teams
Virtual teams
Open lines of communication and collaboration
Other Structures
Product-based
Market-based
Geographical
Matrix
Bureaucratic designs include formalized control, narrow spans of control, centralized authority, and standardized processes. Although bureaucratic designs still exist, it is important to understand how these designs have changed and have become more flexible. Many organizations are flattened and have moved to more fluid structures. Boundaryless designs incorporate participative decision making, cross-functional teams, and virtual teams with open lines of communication and collaboration. The progressive, newer designs of today’s organizations include networks, clusters, and more flexible designs (Buhler, 2011). These designs are more contemporary in nature with perks that attract, motivate, and retain employees. Other structures that are relevant include product-based, market-based, and geographical structures. The matrix structure combines several structures and allows for dual reporting. These structures are designed for multi-level organizations with different products and divisions. The strength of these designs is in increased efficiency and productivity. Learning organizational structures are common in team and cross-functional network structures. These teams are continuously learning, adapting, changing, and sharing knowledge within their work environment. Each structure has advantages and disadvantages, but it is all about getting the right balance in the span of control, decision-making process, and how the reporting structure affects motivation, organizational behavior, and customer satisfaction. Organizations strive to achieve a balance between control, productivity, flexibility, incentives, and cultural norms.

6. Direction and Change Strategic options available Speedy implementation
Alignment
Shared vision
Sales growth
Market share
Performance goals
Reward systems
Employee satisfaction
Flow of information
Decrease in decentralization and formalization
Organizations can quickly change their strategic direction concerning complex changes in the competitive environment when strategic options are available (Feurer & Chaharbaghi, 1997). Speedy implementation can be attained with horizontal, vertical, and cross-alignment to ensure that operations and supporting strategies are aligned. Once a shared vision is communicated, employees can get on board with sales growth, market share, performance goals, and reward systems. Employees are more satisfied and more creative when there is a flow of information and a decrease in decentralization and formalization. Organizations must not be reactive; they must continuously change and reorganize their structures for improved processes (Verle, Markic, Kodric, & Gorenc Zoran, 2014).
(Altmann, 2015a)

7. Self Check True or False
Contemporary designs include simple structures with few employees and wide spans of control, functional structures with departmentalization, and divisional structures that are organized and managed as divisions.
(Altmann, 2014)
The next few slides consist of self check questions for you to test your knowledge regarding the content covered in this unit. The correct answer will be indicated on the next slide.
True or False: Contemporary designs include simple structures with few employees and wide spans of control, functional structures with departmentalization, and divisional structures that are organized and managed as divisions.

8. FALSE
Contemporary designs include team structures, project structures, learning organizations, matrix, and boundaryless organizations.
Traditional designs include simple structures with few employees and wide spans of control, functional structures with departmentalization, and divisional structures organized and managed as divisions.
The answer is False!
Contemporary designs include team structures, project structures, learning organizations, matrix, and boundaryless organizations. Traditional designs include simple structures with few employees and wide spans of control, functional structures with departmentalization, and divisional structures organized and managed as divisions.
(ClickerFreeVectorImages, 2012)

9. True or False
The progressive, newer designs of today’s organizations include networks, clusters, and more flexible designs.
(Altmann, 2014)
True or False: The progressive, newer designs of today’s organizations include networks, clusters, and more flexible designs.

10. TRUE
The progressive, newer designs of today’s organizations include networks, clusters, and more flexible designs (Buhler, 2011). These designs are more contemporary in nature with perks that attract, motivate, and retain employees.
True! The progressive, newer designs of today’s organizations include networks, clusters, and more flexible designs (Buhler, 2011). These designs are more contemporary in nature with perks that attract, motivate, and retain employees.
(ClickerFreeVectorImages, 2014)

11. References
Altmann, G. (2014). Test [Image]. Retrieved from Altmann, G. (2015a). Arrow [Image]. Retrieved from Altmann, G. (2015b). Marker [Image]. Retrieved from Buhler, P. M. (2011). Changing organizational structures and their impact on managers. SuperVision, 72(2), ClkerFreeVectorImages. (2014). Checkmark [Image]. Retrieved from ClkerFreeVectorImages. (2012). No Symbol [Image]. Retrieved from Feurer, R., & Chaharbaghi, K. (1997). Strategy development: Past, present and future. Training for Quality, 5(2), OpenClipartVectors. (2013). Headset [Image]. Retrieved from Verle, K., Markic, M., Kodric, B., & Gorenc Zoran, A. (2014). Managerial competencies and organizational structures. Industrial Management & Data Systems, 114(6), 922.