1. ORGANIZATION STRUCTURE
Chapter 10
ORGANIZATION STRUCTURE

2. Organization structure
Organization structure - the formal arrangement of task, communication and authority relationships that influence and control how people coordinate and conduct their work

3. The duality of structure
Figure 10.1

4. Organizational environments
Figure 10.2

5. Classic form of management
Table 10.1

6. Organization design
Organization design - the process by which managers select and manage aspects of an organization’s structure and culture so that the organization can control the activities necessary to achieve organizational goals

7. The challenges of organization design
Three categories:
Appropriate horizontal and vertical division of labour through differentiating the tasks that various individuals and groups need to perform
Structurally integrating the actors and their activities and implementing mechanisms to enable constructive coordination and control
Determining the degree of centralization or decentralization of decision making

8. Organization design
Guidance has traditionally taken one of three forms:
Universalistic theories - scientific management and other classical management approaches
Contingency theories of organization - consider the impact of environmental, situational, or organizational factors
Configurational theories - more complex than contingency theories because they incorporate complex arrangements and equifinality

9. Organizational height
Figure 10.3

10. Elements and principles of organizational structure and structuring
Horizontal differentiation
Vertical differentiation
Centralization and treatment of non-routine decisions
Communication, co-ordination and integration
Formalization and standardization
Job design

11. Functional organization structure
Figure 10.4

12. Divisional organization structure
Figure 10.5

13. Process-oriented structure
Figure 10.6

14. Matrix structure
Figure 10.7

15. Project structure
Figure 10.8

16. Contingency model of organization design
Figure 10.9

17. Multiple perspectives of an object
Figure 10.10

18. Weber and bureaucracy
Charismatic - authority is based around the personal qualities of the leader
Traditional - relies on accepted precedent as the dominant form of authority
Rational-legal - bureaucratic form of organization is termed rational because of the (rational) objectives and legal because of its rule- and procedure-based approach to authority
Table 10.3

19. Gouldner and bureaucracy:
Gouldner (1954) suggested three types of bureaucracy:
Mock - The rules and procedures are largely ignored by all inside having been imposed on them by an outside agency
Punishment - a variant on the mock bureaucracy in that the rules are imposed on the workers by management
Representative - the rules and procedures are generally supported by those inside the organization having been developed by managers with the involvement of worker and stakeholder groups

20. Mechanistic and organic organizations
Table 10.4

21. Reinforcing cycle for mechanistic and organic configurations
Figure 10.11

22. Metaphors of organizations
Table 10.5

23. Mintzberg’s organizational parts
Figure 10.12

24. Mintzberg’s coordinating mechanisms used in organizations
Table 10.6

25. Mintzberg’s coordinating mechanisms
Figure 10.13

26. Mintzbergs common organizational forms
Figure 10.14

27. Mintzberg’s organizational parts
Strategic apex - reflects the top echelon of the hierarchy
Middle line - intermediate levels of management
Operating core - those involved in operations
Technostructure - specialist functions
Support staff - functions such as HR, maintenance, or facilities management
Ideology - the force for cooperation between the above parts

28. Mintzberg’s common forms
Entrepreneurial form (simple form) - central role for the strategic apex which directly controls activities in the operating core with little in terms of middle line, technostructure or support functions
Machine form - the force for efficiency dominates with a large middle line as well as sizeable support staff and technostructure that create extensive standardization and formalization through rules and regulations
Professional form - the force for proficiency leads and is often found in professional service organizations
Adhocracy form - the force for creating novelty and innovation in in research organizations, political think tanks, advertising agencies and boutique consulting firms
Heterarchy - meaning that different people and subunits are not ordered according to predetermined differences in formal authority (hierarchy) but rather all have the potential to be deployed as is seen fit and in accordance to the requirements of the particular tasks
Diversified form - the force for concentration creates structure wich first diversifies across different domains (such as markets or products) and then divisionalizes by concentrating activities within the unit dealing with a particular domain

29. The Ambidextrous Organization
The challenge of successfully dealing with simultaneous different forces or needs such as for stability and change, efficiency and innovation, and control and responsiveness has long been a central concern of organization designers and theorists

30. The Ambidextrous Organization
Ambidextrous organizations are able to combine alignment and adaptability
Traditional structural solutions were based on structural ambidexterity but now also tend to incorporate contextual ambidexterity and leadership dimensions

31. Comparing structural and contextual ambidexterity
Table 10.7

32. Organizational lifecycle
Quinn and Cameron (1983)
Entrepreneurial phase
Collectivity phase
Formalization phase
Elaboration phase
Katz and Kahn, and Cameron et al
Organizational decline
Whetten (1980) identified four response options to decline
Generating
Reacting
Defending
Preventing

33. The growing pains of an organization
Figure 10.15