1. Division of Labour & Coordination
Subdivision of work into separate jobs assigned to different people
Coordination of work
Informal communication
Formal hierarchy
Standardization
Formalization
Goals/outputs
Training/skills
J. Player, New York Times

2. Writing topics How is your organization structured?
Who reports to whom? Why do you think it is structured in this way? What works? What doesn’t work? What would help the organization function better given the contingencies of org structure.

3. Organizational Structure and Design
Chapter 16

4. DIVISION OF LABOUR: A SUMMARY
Dimension Low High
Degree of specialization General tasks Highly specialized tasks
Typical organizational size Small Large
Economic efficiency Inefficient Highly efficient

5. Elements of Organizational Structure
Department-
alization
Span of
Control
Organizational
Structure
Elements
Formalization
Centralization

6. Span of Control Number of people directly reporting to the next level
Assumes coordination through direct supervision
Wider span of control possible when:
with other coordinating methods
employees perform similar tasks
tasks are routine

7. Tall versus Flat Organizations: Comparison
Chief
Executive
Tall hierarchy
Relatively narrow
span of control
Chief
Executive
Flat hierarchy
Relatively wide
span of control

8. Forces for (De)centralization
Organizational crises
Management desire for control
Increase consistency, reduce costs
Centralization
Complexity — size, diversity
Desire for empowerment
Decentralization

9. DECENTRALIZATION: BENEFITS WHEN LOW AND WHEN HIGH
Low Decentralization High decentralization
(High centralization) (low centralization)
Eliminates the additional respon- Can eliminate levels of management,
sibility not desired by people making a leaner organization
performing routine jobs
Permits crucial decisions to be Promotes greater opportunities for
made by individuals who have decisions to be made by people closest
the “big picture” to problems

10. Formalization
The degree to which organizations standardize behaviour through rules, procedures, formal training and related mechanisms.
Strengths and limits?

11. Mechanistic vs. Organic Structures
High formalization
Narrow span of control
High centralization
Organic
Low formalization
Wide span of control
Low centralization

12. MECHANISTIC VERSUS ORGANIC DESIGNS:
A bird’s eye view
Structure
Dimension Mechanistic Organic
Stability Change unlikely Change likely
Specialization Many specialists Many generalists
Formal rules Rigid rules Considerable flexibility
Authority Centralized in Decentralized, diffused
few top people throughout the
organization

13. Effects of Departmentalization
How are employees and their activities grouped together?
Areas of common supervision
Establishes work teams and supervision structure
Creates common resources, measures of performance, etc
Encourages informal communication among people and subunits
5 pure types of departmentalization…

14. Simple Few employees reporting directly to one person (owner) Owner

15. Functional Organizational Structure
Organizes employees around skills or other resources (marketing, production)
Create subordinate goals
President
Finance
Production
Marketing

16. Divisionalized Structure
Organizes employees around outputs, clients, or geographic areas
President
Enterprise
Systems
Laserjet
Solutions
Consumer
Products

17. Project-Based Matrix Structure
Employees are temporarily assigned to a specific project team and have a permanent functional unit
President
Engineering
Manager
Marketing
Manager
Software
Manager
Project A
Manager
Project B
Manager
Project C
Manager

18. HYBRID structures
Parts are combined to maintain balance of power and effectiveness across functional, product, geographic and client focused units

19. Features of Team-Based Structures
Structure is built around Self-directed work teams rather than individuals
Teams organized around work processes
Very flat span of control
Very little formalization
Most supervisory activities are delegated to the team
Usually found within divisionalized structure
Very responsive and flexible; empowerment is high; reduced need for managers; time consuming; ambiquity

20. Network/Virtual Organizational Structure
Product Development Firm (France)
Marketing Firm (U.K.)
Core Firm (Canada)
Customer Service Firm (U.S.A.)
Production Firm (China)
Accounting Firm (Canada)

21. Contingencies Organizational size Technology External environment
Organizational strategy

22. Types of Organizational Technology
Assembly
Line
Engineering
Projects
High
Analyzability
Skilled
Trades
Scientific
Research
Low
Analyzability
Low
Variety
High
Variety

23. Org. Environment & Structure
Dynamic
• High rate of change
• Use team-based, network, or other organic structure
Stable
• Steady conditions, predictable change
• Use mechanistic structure
Complex
• Many elements (such as stakeholders)
• Decentralize
Simple
• Few environmental elements
• Less need to decentralize

24. Org. Environment & Structure (con’t)
Diverse
• Variety of products, clients, locations
• Divisional form aligned with the diversity
Integrated
• Single product, client, location
• Don’t need divisional form
Hostile
• Competition and resource scarcity
• Use organic structure for responsiveness
Munificant
• Plenty of resources and product demand
• Less need for organic structure