1. C INDHY D WI A TRIANI Group 3 MGT 1 Gladys Pratiwi Febryani sitanggang Thieu Quang trung aka bean Tran ngoc phu aka bob

2. O RGANIZATIONAL STRUCTURE & D ESIGN Chapter 9

3. O RGANIZATION STRUCTURE

4. D EFINING O RGANIZATIONAL S TRUCTURE Organizing the process of creating an organization’s structure Organizational structure the proper arrangement of jobs within an organization Organizational design the developing of an organization’s structure

5. S IX KEY ELEMENTS OF AN ORGANIZATION work specialization departmentalization chain of command span of control centralization and decentralization formalization

6. W ORK S PECIALIZATION the dividing work activities in an organization into separate job tasks increased productivity it could create human diseconomies

7. D EPARTMENTALIZATION the basis by which job are grouped together functional groups jobs by functions performed product groups jobs by product line

8. D EPARTMENTALIZATION geographical groups jobs on the basis of territory or geography process groups jobs on the basis of product or customer flow customer groups jobs on the basis of specific customer

9. F UNCTIONAL D EPARTMENTALIZATION

10. P RODUCT D EPARTMENTALIZATION

11. G EOGRAPHICAL D EPARTMENTALIZATION

12. P ROCESS D EPARTMENTALIZATION

13. C USTOMER D EPARTMENTALIZATION

14. C HAIN OF C OMMAND the continues line of authority that move from upper to the lowest level of an organization and clarifies who report to whom authority the right inherent in a managerial position to tell people what to do and to expect them to do it

15. C HAIN OF C OMMAND responsibility the obligation to perform any assigned duties unity of command a person should only report to only one manager

16. number of employees that a manager can efficiently and effectively manage determines the number of levels and managers in an organization the wider the span, the more efficient the organization S PAN OF C ONTROL

17. appropriate span influenced by: the skills and abilities of employees the complexity of tasks performed availability of standardized procedures S PAN OF C ONTROL

19. C ENTRALIZATION & D ECENTRALIZATION Centralization  the degree to which decision making is concentrated at a single point in the organization Decentralization  the degree to which decisions are made by lower level employees

21. F ORMALIZATION the degree to which jobs within the organization are standardized extent to which employee behavior is guided by rules and procedures

22. O RGANIZATION D ESIGN D ECISIONS

23. rigidly and tightly controlled structure tries to minimize the impact of differing human traits most large organizations have some mechanistic characteristics M ECHANISTIC O RGANIZATION

24. highly adaptive and flexible structure permits organization to change when the need arises employees are highly trained and empowered to handle diverse job activities minimal formal rules and little direct supervision O RGANIC O RGANIZATION

25. M ECHANISTIC AND O RGANIC O RGANIZATION Mechanistic Rigid departmentalization Clear chain of command Narrow spans of control Centralization High formlization Organic Cross-hierarchical teams Free flow information Wide spans of control Decentralization Low information

27. C ONTINGENCY F ACTORS Strategy and Structure Size and Structure Technology and Structure

28. S TRATEGY AND S TRUCTURE Structure should facilitate the achievement of goals Strategy and structure should be closely linked Strategy focuses on innovation, cost minimization, imitation

29. Innovation need the flexibility and free flow of information of the organic structure Cost minimization seek efficiency, ability, and tight control of mechanistic structure Imitation use structural characteristic of both mechanistic and organic structures S TRATEGY AND S TRUCTURE

30. size affects structure at a decreasing rate S IZE AND S TRUCTURE

31. T ECHNOLOGY AND S TRUCTURE converts inputs into outputs mechanistic structure supports routine technology organic structure supports nonroutine technology

32. unit production production of items in units or small batches mass production large-batch manufacturing process production continuous-process production T ECHNOLOGY AND S TRUCTURE

33. W OODWARD ’ S F INDINGS ON T ECHNOLOGY, S TRUCTURE, AND E FFECTIVENESS

34. E NVIRONMENTAL U NCERTAINTY AND S TRUCTURE one way to reduce environmental uncertainty is to adjust the organization’s structure  with greater stability, mechanistic structures are more effective  the greater the uncertainty, the greater the need for an organic structure

35. C OMMON O RGANIZATIONAL D ESIGN

36. Simple Structure Functional Structure Divisional Structure T RADITIONAL O RGANIZATION D ESIGN

37. S IMPLE S TRUCTURE low departmentalization, wide spans of control, authority centralized in a single person, and little formalization  as organizations increase in size, the structure tends to become more specialized and formalized  Commonly used by small business

38. groups similar or related occupational specialties together F UNCTIONAL S TRUCTURE

39. D IVISIONAL S TRUCTURE composed of separate divisions  Each division has relatively limited autonomy  Parents corporation acts as an external overseer to coordinate and control the divisions

40. S TRENGTHS AND W EAKNESSES OF T RADITIONAL O RGANIZATIONAL D ESIGNS

41. C ONTEMPORARY O RGANIZATIONAL D ESIGN

42. Team Structures Matrix and Project Structures The Boundaryless Organization C ONTEMPORARY O RGANIZATIONAL D ESIGNS

43. T EAM S TRUCTURES entire organization is made up of work teams  Employee empowerment is crucial  Teams responsible for all work activity and performance  Complements functional or divisional structures in large organizations

44. C ONTEMPORARY O RGANIZATIONAL D ESIGNS Team Structure What it is: A structure in which the entire organization is made up of work groups or teams. Advantages: Employees are more involved and empowered. Reduced barriers among functional areas. Disadvantages: No clear chain of command. Pressure on teams to perform

45. M ATRIX AND P ROJECT S TRUCTURES Matrix assigns specialists from different functional departments to work on projects led by project managers Project employees work continuously on projects

46.  adds vertical dimension to the traditional horizontal functional departments  creates a dual chain of command  employees do not return to a functional department at the conclusion of a project  all work performed by teams comprised of employees with appropriate skills and abilities  tends to be very fluid and flexible M ATRIX AND P ROJECT S TRUCTURES MatrixProject

47. A N E XAMPLE OF A M ATRIX O RGANIZATION

48. C ONTEMPORARY O RGANIZATIONAL D ESIGNS Matrix-Project Structure What it is: A structure that assigns specialists from different functional areas to work on projects but who return to their areas when the project is completed. Project is a structure in which employees continuously work on projects. As one project is completed, employees move on to the next project. Advantages: Fluid and flexible design that can respond to environmental changes. Faster decision making. Disadvantages: Complexity of assigning people to projects. Task and personality conflicts.

49. T HE B OUNDARY LESS O RGANIZATION design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure Virtual organization Network organization

50. Virtual organization Consist of a small core of full time employees and hire outside specialist temporarily as needed to work on projects Network organization Uses its own employees to do some work activities and networks of outside suppliers to provide other needed product component or work process T HE B OUNDARY LESS O RGANIZATION

51. C ONTEMPORARY O RGANIZATIONAL D ESIGNS Boundaryless Structure What it is: A structure that is not defined by or limited to artificial horizontal, vertical, or external boundaries; includes virtual and network types of organizations. Advantages: Highly flexible and responsive. Draws on talent wherever it’s found.. Disadvantages: Lack of control. Communication difficulties..

52. T ODAY ’ S O RGANIZATION D ESIGN C HALLENGES Keeping Employees Connected Building a Learning Organization Managing Global Structural Issues

54. T ERMS TO K NOW  Organizational structure  Organizational design  Work specialization  Departmentalization  Functional dept  Product dept  Geographical dept  Process dept  Customer dept  Chain of command  Authority  Responsibility  Unity of command  Span of control  Centralization  Decentralization  Formalization  Mechanistic  Organic  Strategy and Structure

55.  Innovation  Cost minimization  Imitation  Size and structure  Technology and structure  Unit production  Mass production  Process production  Simple structure  Functional structure  Divisional structure  Team structure  Matrix and project  Boundary less organization  Virtual organization  Network organization T ERMS TO K NOW